Dundee has suffered a massive jobs blow with the announcement that building company WH Brown Construction has gone into receivership, with the loss of 130 jobs.
The workforce, mainly consisting of joiners, bricklayers and other construction workers some of whom had been there for more than 30 years gathered at the 42-year-old company’s headquarters in Ainslie Street, West Pitkerro, after receiving letters in the post on Monday.
The high noon meeting was held in the timber warehouse, where the devastated workers were told by receivers Ernst and Young that their contracts had been terminated with immediate effect. They were each given redundancy and job centre forms to fill in.
Following the announcement, a statement was released by Ernst and Young stating Derek Hyslop and Colin Dempster of the firm had been appointed joint receivers of WH Brown Construction (Dundee) Ltd and its subsidiary Bronco Timber Products Limited at the request of the company’s directors.
Mr Hyslop said: ”Despite the best efforts of the directors, difficult economic conditions have resulted in a situation where the immediate cessation of trading is necessary at both companies. Regretfully, this has resulted in the unavoidable loss of approximately 130 jobs.
”We are now focused on establishing the full extent of the company’s debts as we aim to realise its assets on behalf of its creditors.”
The statement also confirmed the joint receivers are arranging a workshop where the companies’ employees will be helped in the completion of redundancy and benefit claims forms. They will also be offered one-to-one counselling and advice on retraining and employment opportunities.
WH Brown Construction (Dundee) Limited has provided construction services in the east of Scotland for almost 42 years. Bronco Timber Products Ltd is the company’s joinery manufacturing unit.
Among the big projects they have completed are the Bank of Scotland building at 2 West Marketgait and the Queen Mother research building at Dundee University.
Dozens of sombre-faced workers filed back out of the timber warehouse and began telephoning their loved ones with their bad news.
Joiner Jimmy Hogg (31), from Fintry, said: ”There’s been lots of rumours every week, so it’s not unexpected. I kind of knew this was coming so I’ve already got a new job. I start in Aberdeen on Wednesday but it’s a really sad day for the company.”
Dundee man John McIntosh (36) blamed the company’s directors who, he said, had left the workforce in the lurch.
”I’ve been here for two years and this has been happening for the past few months,” he said. ”There’s no other information. We’ll not get any wages and we’ve to come back on Friday and fill in forms.
”Everybody’s not happy. We didn’t get any answers to questions. The management didn’t speak it was the receivers.
“I’m gutted obviously. It’s a big Dundee firm and I’ve got a wife and two kids and a mortgage to pay.”
Apprentice joiner Angus Reid (20), from Carnoustie, was also bitterly disappointed.
He said: ”We’ve just been made redundant and I wasn’t expecting it. I didn’t think they would let it get this far. There’s been rumours, but there’s always rumours. Hopefully I’ll get started somewhere else.”
Ganger Richard Johnston (36), from Kirriemuir, described the situation as ”a joke.”
”We guessed what was happening because of the rumours. They’ve been going since I started just over a year ago. ‘We’ve been struggling to get materials for jobs.
”None of the bosses would speak to us. It was the receivers. I’ve got four kids and I rely on my job. It’s my wage that pays the bills, so I’m going to have to look for another job.
”The company has contracts in Glenprosen, St Andrews and Coupar Angus and there are probably other smaller ones as well.”
Married father-of-three Winston Emanuel (45), of Hilltown, has been with the firm for around 10 years.
”It’s disappointing to lose a good job like this, but we’ve been going out to jobs and being sent back to the office because there’s no materials and nothing for us to do.”See further coverage in Tuesday’s Courier