THE future of Scotland's last remaining heavy rail repair factory has been plunged into chaos after its owner was placed in administration, putting more than 100 Scottish jobs at risk unless a new buyer can be found.
Staff at the historic Railcare depot in Springburn, Glasgow,- formerly known as the Caledonian Railway Workshops, have been facing uncertainty for days.
The company failed to pay their salaries last Friday when a rescue deal brokered with German-based firm, Knorr-Bremse, collapsed.
They remain in talks with two interested parties, including Knorr-Bremse. Aberdeen-based Labtech Services Ltd is the other.
The depot, affectionately known to generations of Glaswegians as the "Caley", provides repair services, vehicle refurbishment and spare parts for train operators including ScotRail, leaving a question over how the country's rolling stock will be maintained.
It is understood ScotRail currently has three trains at the Springburn depot – a Class 170, Class 156 and Class 318 – being serviced or refurbished.
A ScotRail spokesman said: "It is very sad news to hear that Railcare has gone into administration.
"We will work closely with the administrator. First and foremost, it is hoped solutions will be found to secure the future of the business."
In its heyday under British Rail ownership the facility employed 4000 workers, but the factory has been in steady decline since the 1980s with staff numbers dwindling to around 110 today. It was taken over by Railcare in 2007.
Patricia Ferguson, Labour MSP for Springburn, said that the factory represented the "last vestige" of Springburn's proud history as a hub for locomotive manufacturing.
She added: "I sincerely hope that even at this late stage a buyer can be found for Railcare. Saving the jobs of over one hundred people must be the priority but it would also be very sad to lose the last remnant of Springburn's proud railway history. I have advised the company and the trades unions that I stand ready to assist them in any way I can."
Although the business is said to have a full order book, with plenty of work in the pipeline, transport union RMT said workers were now facing the prospect of redundancy due to a cash-flow crisis believed to amount to little more than £1 million.
It is understood Railcare, which is headquartered in Milton Keynes and employs 400 workers at a depot in nearby Wolverton, had approached the UK Government for financial assistance but was turned down.
RMT blamed the crisis on delays caused by last year's aborted West Coast franchise bid, which held up fleet refurbishment plans while costing the taxpayer some £100,000. It is calling on Business Secretary Vince Cable to intervene.
RMT General Secretary Bob Crow said: "The Government cannot sit on their hands and watch this situation play out for the want of what we believe is not much more than a million pounds of cash-flow finance.
"Reports that Railcare have already been turned down for assistance make a mockery of the Government's business strategy and their stated objective of protecting skilled jobs."
Administrators BDO are continuing to liaise with customers and trading is expected to continue while a buyer for the business and assets is sought.
Bryan Jackson, business restructuring partner at BDO, said: "Unfortunately the economic climate and difficult trading conditions significantly affected the business, together with reduced demand. However, we are hopeful of securing a sale and, depending on customer requirements, the company may continue to trade whilst this is explored."
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