Industrial Workers of the World

Wedgwood sit-in is the first of many: The Wedgewood Waterford workers' protest over the administration may become a trend, say experts Written by David Jetuah Accountancy Age, 12 Feb 2009

http://www.accountancyage.com/accountancyage/analysis/2236308/wedgwood-sit-first-4468405

The occupation of a Waterford Wedgewood factory by workers in protest over the company being put into administration represents a new worry for insolvency practitioners. Experts believe the sit-in protest by angry workers at the Waterford Wedgewood crystal factory in Ireland is unlikely to be a one-off incident.

The protest at the 250-year-old crystal and crockery maker was still continuing as Accountancy Age went to press. Last week 13 workers at the company also marched into the head office reception of the company’s auditor Deloitte to protest over the actions of the receiver David Carson. The deadlock at Deloitte’s office only ended after a meeting between two Waterford workers and Deloitte senior partners.

James Money (an appropriate name), restructuring and recovery services director at Smith & Williamson, says that similar protests may occur in other hard-hit industries, such as the car and steel sectors. Administrators have the same powers as company management when people trespass on company property, including the right to press charges against those causing criminal damage.(Ah yes says Molly, but the application of these laws is entirely dependent on the political climate prevalent at the time.

If such measures are too unpopular they won't be applied.) ‘When a company goes into administration and somebody does something illegal, the same laws still apply,’ says Money. Dealing with staff who are understandably angry and upset is tough, but insolvency practitioners can help maintain good relations with staff by keeping them informed about business developments, taking care not to raise unrealistic expectations, Nick Hood, a partner at insolvency specialist Begbies Traynor says. ‘The key is to make the workforce understand what is happening. The real know-how comes in carrying them with you as you’re doing your job. ‘

There’s a hardening of attitudes among the workforce because, for very good reason, they are frightened for their jobs in what is a very tricky economic situation,’ says Hood. ‘It does make your job more difficult so IPs will have to pay more attention to the likelihood of this happening than previously. My golden rule is never make promises to the workforce that you can’t deliver.’

Ultimately, however, the administrator has to act in the interest of the creditor. ‘You can’t force somebody to buy a company, but in many ways, achieving a going concern sale is a mark of success to an IP,’ says Money. http://www.accountancyage.com/accountancyage/analysis/2236308/wedgwood-sit-first-4468405