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From The Socialist newspaper, 20 February 2019

Energy retail firm collapse hits Tyneside

Utilitywise employs 1,000 workers, photo by Oliver Dixon/CC

Utilitywise employs 1,000 workers, photo by Oliver Dixon/CC   (Click to enlarge)

William Jarrett, North Tyneside Socialist Party

Already reeling from numerous national and local collapses of businesses today fresh blows were rained down on Tyneside's struggling workforce. Utilitywise PLC is a firm which sells energy on a second-hand basis following speculation of prices. Initially based in South Shields the company relocated across the Tyne to North Shields in an ironic cost-cutting exercise, taking up new quarters at Cobalt Business Park which caused significant disruption for many staff.

Following months of communication with Utilitywise staff it became clear to Socialist Party members in North Tyneside that the firm was transitioning from danger to imminent demise. This deterioration arrived as no surprise based on what employees shared with us. High-pressure selling, reckless management, a an 'in' clique and hard-partying culture encouraged by bosses, and totally inappropriate managerial gambles on the corporate roulette wheel made Utilitywise a ticking timebomb.

While CEO Brendan Flattery was in hiding somewhere at the facility, it was director Chris Blench who was left with the unenviable task of informing the 1,000 strong workforce of the terrible news that not only were they being made redundant, but that they would receive no commission or wage payments for February. Incredibly though Blench insisted workers should continue to work as normal, implying they could turn the situation around! One worker fell to the floor and suffered a seizure. Chaotic scenes were described of angry workers confronting Flattery, and one expecting mother told me the situation was risking her already-hazardous pregnancy.

The estimated £31 million of debt accrued by Utilitywise was pushed over the edge with the recent announcement that a deal had gone sour, adding another £7.6 million loss resulting underestimating consumption in its contracts, which the firm attributed to ''exceptional costs''. Trading was suspended after banks refused to lend an additional £10 million to keep the company solvent, and we're told FTI Consultants administrators were snuck in to the facility after business hours.

Tyneside's proud tradition of trade union struggle has resulted in many victories across the area, with Socialist Party activists standing in solidarity with workers engaged in struggle. What's remarkable about Utilitywise is that such a large company had such low trade union membership density. There are lessons to be drawn from this, and opportunities for the Communication Workers' Union and other unions committed to growing in the increasingly diverse telecommunication sector it traditionally serves. The Socialist Party says that energy and all its constituent sectoral components belong in public hands, owned and operated by and for workers and service users. Only the rational planning of resources is capable of preventing the type of catastrophic situation unfolding across the North East in the wake of Utilitywise's wholly preventable demise.

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In The Socialist 20 February 2019:


News

Nationalise Airbus and other manufacturing plants to save jobs now!

NHS crisis deepens: Workers' and community action can save our health service

What we heard

What we saw


Youth climate strikes

"There's no planet B": Thousands of youth strike against climate change - we need socialist change!

Youth strike for the climate reports: "There's no planet B"


Opinion

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The Socialist Inbox


What we think

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Workplace news

PCS Left Unity must unite on pay and elections

Universal Credit staff ballot for action

Annoyed?! I'm annoyed to be on poverty wages

Nationalise to save jobs at Honda!

Birmingham bin strike against 'blacklisting'

Deliveroo riders strike against exploitative pay and conditions

Leicester college pay strike goes on

Cardiff Uni: urgent action needed to stop job cuts

Hackney: Unite fights racism and victimisation

Harrowing accounts of austerity at Unison women's conference

Unite GLL pay campaign


International socialist news and analysis

Spanish state: social polarisation and budget defeat force snap election


Socialist Party reports and campaigns

Unite union London council workers back Enfield Labour no-cuts call

Leeds TUC presents a no-cuts alternative budget

Socialist Students conference shows potential for fighting leadership

London housing campaigners disrupt auction

Birmingham Uni: Standing up to racism is not harassment!

Leicester Socialists stand against Blairite mayor

Lincoln students back UCU ballot

Leicestershire needs NHS beds

Claimants and union slam Universal Credit

Energy retail firm collapse hits Tyneside


World economy

New recession fear stalks the world economy


 

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Related links:

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