300 jobs face axe at Helphire
The future of 300 staff at accident assistance firm Helphire was thrown into doubt today.
It is not yet clear whether staff will be offered new jobs at the firm’s other contact centres - at Northwich in Cheshire and Peterlee in County Durham.
The firm - based at Pinesway in Lower Bristol Road - has shed hundreds of jobs in the last year after being buffeted by the recession.
Helphire, which offers services to the victims of accidents that are not their fault, held meetings with staff throughout today.
The company, which has also cut its car fleet by thousands of vehicles, will keep its management and other headquarters departments in Bath.
In a statement it said: “In line with previously announced plans to reduce the Group’s cost base, increase productivity and strengthen its competitive positioning, Helphire Group plc advises that it proposes to consolidate its operational resource within two of its existing contact centres in the North East and North West respectively.
“As a result, a consultation process is under way with potentially affected employees within the Bath contact centre.
“Helphire Group plc’s headquarters and central support functions will remain in the company’s existing Bath premises.”
Today, employees at Helphire looked shocked as they left the building for lunch.
The miserable weather seemed to reflect the mood of a large number of the employees.
People made their way off the property in small groups talking about the announcement, and what they planned to do.
Others were on the phone, relaying the news to friends and family.
None were prepared to discuss the announcement.
On man said: “I have decided to take voluntary redundancy, that’s all I will say.
“We have been told that we are not allowed to talk to the press.”
Council chiefs have offered to help the hundreds of workers facing unemployment in the shake-up.
Bath and North East Somerset Council says it has made the offer of CV advice and business start-up tips to the accident assistance firm.
A spokesman said: “The council has offered to coordinate a multi-agency task force to provide information, support and advice to those employees that are affected.”
The task force would consist of a range of agencies including JobCentre Plus, Business Link and Citizens Advice offering advice from training opportunities through how to start a business to the benefits available.
The council launched a similar task force when Cadbury announced the closure of its Keynsham plant.
The Somerdale factory may now be saved by new owner Kraft, but scores of jobs have still been lost.
The Cadbury initiative saw:
* more than 180 employees given access to training on 67 courses;
* 10 employees given help on CV development and jobs search, with all finding employment;
* 25 employees given advice on starting their own business, resulting in three new business start-ups.
Bath MP Don Foster said it was important for measures to be put in place for those who may be losing their jobs to give them as much help as possible.
He said: “We have known for some time job loses were in the offing and that is duly worrying for the people whose jobs will go.
“I want Helphire to do everything they can to offer them alternative jobs but I recognise that not everybody is going to want to move because of their families.
“It is very important measures that measures are put in place for people losing their jobs to give people as much help as possible to find a new job.”
Bath Chamber of Commerce executive director Ian Bell said the centre closure announcement was “very unwelcome news.”
“What we have been saying in the chamber is that we recognise Bath is over-reliant on the public sector.
“We know the public sector is going to be squeezed so we are expecting a reduction in public sector jobs.
“To hear that this has now happened is grim news indeed.
“It makes a hole in the private sector which doesn’t bode well at all.”
He said he feared the administrative workers at Helphire might struggle to find jobs elsewhere because of the public sector squeeze.
Last February the company had said it was looking to cut 130 jobs across the whole of its UK operations but by September this figure was increased to 350.
The company has had an almost complete change of management in the past year as it battled with the effects of the recession and changes in the car insurance industry.
In September redundancies at the firm had a knock-on affect in the city as Manvers Street-based Temple Street Solicitors became a victim of the difficulties the company was facing.
The law firm, which was used by Helphire to pursue legal claims for its customers was forced to close with the loss of 150 jobs.
Last November, Helphire issued an interim management statement which put a brave face on its performance in recent months.
It said it had axed 900 posts in the year to the end of October – and expected to say goodbye to another 350 workers by the end of its current financial year in June.
The firm had seen a significant fall in the number of accident-related car hire cases it was dealing with, although the snow and ice of last month brought an upsurge in its workload.
The firm describes itself as a market leader in the provision of accident management assistance to drivers involved in road accidents that are not their fault. It lays on like-for-like replacement vehicles, finances vehicle repairs, legal expenses and the management of personal accident claims.
Its last financial results last autumn showed a £149 million pre-tax loss but at that time it declined to comment on claims on an investment website that it was considering transferring more of its work to Peterlee.
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