Mick Antoniw, Member of Senedd for Pontypridd and Member of Parliament Alex Davies-Jones have called on parent company of Rhys Davies Logistics to ensure that workers do not become the victims of an asset stripping exercise. 

The intervention follows news that workers at the Taff’s Well company’s site were told to attend a meeting where they were kept waiting for 2 hours until the administrators finally arrived.  It was only then that they were told that company was going into administration and that they needed to make a claim to the UK Government for their redundancy and notice pay.

 Alex Davies-Jones MP said:

“Losing your job at any time is an incredibly stressful experience, but for workers to be treated in this completely unacceptable way only days away from Christmas, is heartless and will plunge these families into turmoil.

Staff claiming for loss of notice pay will have to wait until after the notice period has ended, and this can take up to 12 weeks.  Workers who were due to be paid on December 15th have been informed this payment will not be made.  This is completely unacceptable and we’re calling on Cathay’s investments to think again and pay these workers what they are due before Christmas.”

Mick Antoniw MS said:

“This has all the hallmarks of an asset stripping exercise and it’s the workers who are the victims.

“The parent company has the option of furloughing staff and is clearly in a position to absorb the minimum financial outlay this would require.  This would allow time for the administrators to identify potential buyers and ensure that that workers have some breathing space in the run up to Christmas.  If they fail to do so, it will add to the impression that Covid-19 is being used as cover to get rid of workers.”

Welsh Government officials are in touch with the company to offer discussions with the Development Bank of Wales to explore potential financial support or alternative buyers.

Mick Antoniw MS added:

“We welcome the immediate assistance offered by Welsh Government and urge the parent company to engage positively with Welsh Government to find a solution which will enable this well-known brand to continue into the future.”

Alex Davies-Jones MP added:

“We are working closely with Unite the Union on this and are urgently seeking a meeting with the parent company’s directors and with the administrators.  We are determined that the administrators should be given the time they need to help save this important local company and that Cathays Investments does the right thing by its workers.”