BOSSES behind a collapsed cable maker are an “absolute disgrace” and must foot redundancy payments of hundreds of workers, a union has claimed.

GMB has called for a full investigation into Ducab after accusing the AEI Cables owner of neglecting its duties over staff payouts.

The union has also alleged Ducab will strip assets from the business for future gain.

However, Ducab has denied the claims, telling The Northern Echo it has done all it can to make AEI Cables a success.

It also added it leases the land where AEI Cables' factory is based and is committed to fulfilling orders and paying creditors. 

It was confirmed earlier this week that 200 jobs will go at the loss-making Birtley business, based near Chester-le-Street, after turnaround plans fell flat.

Ducab, which rescued AEI in 2014, has since been accused of treating workers disrespectfully and criticised for entering into a Company Voluntary Arrangement (CVA), meaning staff will have to apply to the Government for statutory redundancy pay.

The GMB union, which previously told the Echo it felt Ducab had no interest in finding a solution to AEI’s troubles, has now accused the Dubai firm of shirking its duties.

A spokesman said: “It is an absolute disgrace Ducab has shown such a disdainful attitude to workers and their families.

“Such callous disregard for local people should be investigated further.

“Generations of manufacturing will be lost by Ducab seeking to avoid its responsibilities.

“We are calling on the owners and directors to pay the full redundancy out of its global profits.

“The taxpayer (shouldn’t have) to fork out for elites who will remove the plant, equipment and raw materials and make profit elsewhere while sitting on a land asset in Birtley.”

However, a spokesman for Ducab denied the claims.

He added: "The proposed CVA has to be agreed by a meeting of creditors first, a date for which has not yet been decided.

"This process will enable work to continue to fulfil existing orders, whilst also paying creditors.

"Since the acquisition by Ducab in February 2014 significant investment has been made in the site, with all funding coming from Ducab.

"The land asset is not owned by Ducab, but rather leased.

"The company tried for almost three years to make the factory a success.

"There has been no meaningful improvement in financial results or productivity over this time.

"Monthly briefings with all staff and union members have taken place over the last year or more.

"All staff are and were fully aware of the business position.

"Full consultation on the potential changes started in September 2016 at which time union participation was invited.

"Many customer orders still need to be fulfilled over the next few months."