3. Topical Questions – in the Senedd on 16 December 2020.
1. Will the Minister make a statement on job losses at Rhys Davies Logistics in Taff's Well as a result of the company being put into administration? TQ523
Yes, of course. The job losses that have been announced are a devastating blow, particularly at this time of the year, and our thoughts are with everybody employed at the site. We'll do all we can, alongside the Department for Work and Pensions, in ensuring that support is available to those affected.
Minister, just over one year ago, a long-established family firm, Rhys Davies Logistics, based in Taff's Well in my constituency, was acquired by Cathay Investments, an English-based company with interests in logistics, chemicals, many other areas. The new owners described it at the time as the deal of the month, saying that it
'will enable RDL to flourish into the future...and we are confident that exciting times lie ahead.'
So, barely a week ago and barely a fortnight before Christmas, the loyal workforce in Taff's Well and other depots turned up for work, only to be kept waiting in the cold for several hours and then handed their redundancy notices and told they would not be paid. The only option is to apply to the UK Government's Insolvency Service for payment, and this may take many months.
Now, the way these workers have been treated, Minister, is a disgrace, and it does expose the poor state of employment rights in this country. What is coming to light is a company that appears to have been either grossly mismanaged or deliberately run down, where workers have been furloughed on a rota, whilst, at the same time, agency workers were taken on to do work of the furloughed workers in what may be an abuse of the job retention scheme. Minister, I've written to you about this, but I wonder whether you will carry out an investigation into what has happened at this company, to be sure there's been no abuse of public funds and to ascertain the reasons for its sudden collapse. I am certainly grateful for the speedy response of your officials in meeting with me the other day, and the work being done by Unite the Union to support their members.
So, what support can Welsh Government give to prospective buyers for this company, and in particular, what support can be given to the workforce? Minister, I know that employment law is a reserved matter, but will you consider ways in which Welsh Government can, in future, give support to workers who are faced with such dire treatment? I know that the Wales Trades Union Congress have, in the past, raised the idea of what I'd call a workers' solidarity fund; maybe in the current economic circumstances, there's merit in revisiting this proposal. So, I wonder if you would give this your consideration in support of the workers at Rhys Davies and others in the future.
Well, can I thank Mick Antoniw and say that there has clearly been a terrible treatment of loyal employees at this particular site? We are very, very concerned by some of the allegations that have been made against the company, particularly the allegation of misuse of the furlough scheme. I'd very much encourage Mick Antoniw to write to the UK Treasury regarding the points that he has raised today, and also I can assure him that my officials will be raising this matter with the Treasury as well.
Mick Antoniw raises a number of important points, including the support that could be offered to individuals and prospective buyers. We are keen to learn of any possible salvation for this company, so any potential buyer should make contact with the Welsh Government, and we'd examine what support we'd be able to give them. In terms of support for employees though, of course we've got a raft of measures in place that are going to be available to those affected, including, crucially, the ReAct programme, and other schemes, including personal learning accounts. We'll be working very much with the Department for Work and Pensions in ensuring that affected workers get all of the support, guidance and advice that can possibly be given.
Now, in terms of the suggestion of a solidarity fund, I think this idea does merit consideration. We have the social partnerships approach here in Wales, which enables trade unions to help shape support packages, and I'd very much encourage the Wales TUC to bring this potential scheme to the attention of my officials, so that it can be discussed at a future social partnership council.
Thank you.
Thank you, Minister, for your response to this topical question. It is, obviously, hugely distressing to see such a major logistical firm cease trading—170 vehicles, 150 articulated trailers and a warehouse operation that spans across nine sites across the United Kingdom. And especially at this time of the year with the uncertainly, it's vital now that the help that you've identified from Welsh Government is made available to any of the employees who are calling out for that help. There is support within the local area. I, myself, today have been acting on behalf of some constituents who worked for this company, putting them in touch with other employers who have vacancies, and so hopefully other jobs can be found. But, have your officials been able to make an assessment of whether this is a unique set of circumstances for this one company or whether there are wider logistical problems within the sector that will cause problems for other companies, and that you are responding to those alarm bells that might be ringing across the transport sector?
Well, can I thank Andrew R.T. Davies for his questions? I'd share the sentiments that he has expressed regarding how distressing this news is for affected workers. Of course, we do have the additional £40 million available for the COVID commitment. It's specifically designed to help people who are in a position of those at the company right now, and that COVID commitment includes a significant increase in spending on schemes such as the personal learning accounts and the apprenticeship programme. We also have the regional response teams that are available to support workers, to try to identify alternative work as well for those that are affected, who have a similar skill set to those opportunities that may exist right now.
In terms of the logistics sector, as a whole, the logistics sector has struggled with staff retention and recruitment in recent years, and I think it's fair to say that, according to reports, the sector has struggled to find people with the appropriate skills. So, there are opportunities out there. It would appear to us—I can't comment on some of the allegations that are being made regarding the management of this particular company in recent times—but it would appear to us that what has affected this company is isolated to this company, and it is not an infection, if you like, of the whole of the logistics sector. Of course, we have teams in the Welsh Government though that are looking very closely at this particular company, to ascertain whether there are any common themes in terms of some of the problems that they've experienced. If so, we'll work with the likes of Logistics UK, representative bodies, to ensure that the Welsh Government, alongside the UK Government, because this is a UK-wide sector experiencing UK-wide challenges in terms of skills retention, to make sure that we are all providing the support that's necessary to give the sector some resilience during an incredibly difficult period.
Thank you, Minister. The next question is to be answered by the Minister for Health and Social Services, and the question will be asked by Rhun ap Iorwerth.