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11/11/2010

More Than 700 Redundancies Made At Rok

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Administrators appointed to Rok on Monday have made over 700 redundancies.

PricewaterhouseCoopers (PwC) confirmed there have been 82 redundancies in the construction part of the business 69 in the Scotland Plumbing, Heating and Electrical (PHE) business, 558 in the maintenance and improvements business and 2 in head office.

Mike Jervis, partner and joint administrator, PwC said: "Regrettably, the redundancies made today were necessary for economic reasons where there has been little or no interest in the business from prospective purchasers or where there was insufficient work for staff to carry out. In the case of the maintenance and improvements division , we are rationalising the national network to slim down areas where there is not enough work for employees, principally in the build division.
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"We have set up an employee relations helpline and every employee affected by the redundancies has had the opportunity to attend a site in person or take part in a conference call. We are working closely with employees affected by this decision to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments. Staff affected by this will be paid up to and including today.

"As we have already committed, those employees who continue to be employed by the company and attend work will continue to be paid, as normal.

"On a positive note, we have had over 100 expressions of interest in the business and we are currently reducing this to a shortlist. There are still national contractors interested in all divisions, as well as parties interested in individual divisions. We are short-listing bidders on the basis of their size, level of interest in acquiring large parts of the business and their speed of reaction.

"We expect to have further updates by the end of the week."

All other staff remaining at the company have been briefed, with the administrators working closely with them over the coming weeks as a buyer or buyers are sought.

(CD/KMcA)

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