Union intervenes to protect workers at collapsed manufacturer Covpress

THE country’s largest trade union has intervened to support workers whose jobs are under threat following the collapse of a major Midlands manufacturer.

Covpress, which is one of Coventry’s largest employers, lapsed into administration on Thursday citing urgent funding issues. The collapse directly threatens the jobs of 800 people, with many more in the supply chain likely to be affected as well.

The £98m-turnover business, which supplies to the automotive sector, has been owned by Chinese group Shandong Yongtai since 2013.

Unite said it wanted to hold urgent talks with management to clarify what the situation was.

Unite regional officer Adrian Ross said: “We are requesting talks with the company. It is a worrying development for the 800 employees involved and also, more generally, for the West Midlands economy.

“We understand that the administrators have reassured the workforce that there will be no redundancies and there is optimism that a buyer will be found. Order books are full.

“We will have a clearer picture of what is happening, once talks with the company have concluded. Unite will be supporting its members to the maximum during this period of uncertainty.”

Covpress, which can trace its history back to the 19th century, presses parts for car firms GM, Honda, Jaguar Land Rover and Renault. It has seen rapid expansion in recent years backed by Chinese investment.

Eddie Williams, Richard Lewis and David Dunckley from Grant Thornton have been appointed as joint administrators and they are trying to identify a potential buyer for the business.

Sister company Covpress Assembly, which was known as UYT before its acquisition last year, is unaffected.