Workers unpaid by Scottish Gas for two months urge MSPs to take action
Workers at a firm who have not been paid for two months because their employer is owed money by Scottish Gas have called on the Scottish Government to intervene.
Staff at Powersave Insulation, in Cumbernauld, who work on the government's central heating scheme, say they have been plunged into debt and several face losing their homes.
Yesterday The Herald reported how management recommended the workers might be better taking redundancy as they have no funds for wages or materials to carry out other work.
The company is owed around £500,000 for work carried out as part of the government's Warm Deal programme. Scottish Gas holds the contract to deliver the scheme.
The workers at Powersave Insulation yesterday issued a statement to The Herald calling for government intervention to ease their plight.
It stated: "Since Scottish Gas took over, the industry has been in turmoil. We feel our own company in on the brink of closure. There are 41 employees involved who have not been paid in more than two months.
"Scottish Gas has had the cheek to ask us to carry out 300 jobs as priority when they have not paid money due to the company. For nine weeks we have been idle, having no money for materials.
"The industry we are in is important to the public, particularly the elderly, and we feel the programme is being jeopardised."
Workers at the company said they have each lost wages of upwards of £2000.
One worker said: "I am two weeks away from having my house repossessed. The debt is mounting and my phone has been cut off."
A colleague said: "I can't pay any direct debits and I have £400 in bank charges. I have three children and I don't know when I am next going to get paid. I am in arrears with every bill."
Another man said: "I have been surviving by borrowing and accepting help from family but I can't continue like that."
Scottish Gas said: "We have been working with the company over an extended period to rectify inconsistencies in
the invoices they have presented to us.
"We have met them on several occasions to reconcile payments and have made advance payments. But these problems have slowed down our normal payment timescales. We will continue to work with Powersave to address these issues."
A spokesman for the Scottish Government said: "Scottish Gas has a contractual requirement as managing agent to ensure contractors are paid within 30 days of satisfactory completion of work.
"During the regular meetings between Scottish Gas and Scottish Government officials, it has repeatedly been made clear to Scottish Gas that they should comply with this requirement and we expect them to do so.
"Scottish Gas has acknowledged there have been delays with some payments due to practical difficulties.
"However, they have indicated the majority of these issues have now been resolved. Scottish Gas has also advised that all sub-contractors have been issued with instructions and contact details for any future problems.
"Scottish Government officials are currently looking into this individual situation in more detail and will report to the Minister for Communities and Sport, Stewart Maxwell, as soon as possible."
© All rights reserved. Reproduction in whole or in part without
permission is prohibited.
Posted by: Scunnert, Travelling in Nihlon on 9:23pm Thu 15 May 08
[quote]Scottish Gas said: "We have been working with the company (Powersave Insulation ) over an extended period to rectify inconsistencies in the invoices they have presented to us.[/quote]
Did they think it was business as usual? I bet they're wishing labour were still in power - no problems then with iffy invoices - guaranteed.
Scottish Gas said: "We have been working with the company (Powersave Insulation ) over an extended period to rectify inconsistencies in the invoices they have presented to us.
Did they think it was business as usual? I bet they're wishing labour were still in power - no problems then with iffy invoices - guaranteed.
Posted by: Gormak, Somewhere in the Highlands on 9:59pm Thu 15 May 08
Any chance of being able to comment on the Referendum or PE stories?
Any chance of being able to comment on the Referendum or PE stories?
Posted by: steffg, coatbridge on 10:09am Fri 16 May 08
There's nothng wrong with the invoices. That's a smokescreen to cover up Scottish Gas' incompetence. The problems are caused 100% by the shambolic way Scottish Gas run the programme. There were never problems like this when EAGA was the main contractor.
There's nothng wrong with the invoices. That's a smokescreen to cover up Scottish Gas' incompetence. The problems are caused 100% by the shambolic way Scottish Gas run the programme. There were never problems like this when EAGA was the main contractor.
Posted by: Ambassador, London on 11:48am Fri 16 May 08
Time to nationalise Scottish Gas along with Grangemouth as well as the North Sea Portfolio, but after the referendum for independence.
The Nationalisation program should be for the betterment of the Nation state. The profiteers only seek dividend payouts and don't have that much regard for consumers, at least with nationalisation the energy assets are for the betterment of the nation state as a whole.
As for Scottish Labour , Wendy should listen to Tony Benn in regards to economic modelling of a nation state , from there she can devise a sensible strategy for the Scottish Labour. At present the party of Government in Scotland are a progressive centre left party.
Time to nationalise Scottish Gas along with Grangemouth as well as the North Sea Portfolio, but after the referendum for independence.
The Nationalisation program should be for the betterment of the Nation state. The profiteers only seek dividend payouts and don't have that much regard for consumers, at least with nationalisation the energy assets are for the betterment of the nation state as a whole.
As for Scottish Labour , Wendy should listen to Tony Benn in regards to economic modelling of a nation state , from there she can devise a sensible strategy for the Scottish Labour. At present the party of Government in Scotland are a progressive centre left party.
Posted by: evybhoy, glasgow on 1:39pm Fri 16 May 08
i work for this company and have worked in this industry for the last 13 years through various different companies
i have personal knowledge that we are not the only company involved in this dispute i have not worked for about 8 weeks now and ive had plenty of time to catch up with mates throughout the insulation industry and they all say the same that british gas are slow with payment
in the last few weeks some of my work mates have had bank charges ,final demand bills one guy even had his tv removed from his home mortgages and rents are now 2 months in arrears and the bills keep mounting we have spoken to our msp,s and now all we can do is wait but for how long as far as i know they still owe us around £200,000-£250,000 this is a lot of cash to a small company like ours and unless it is paid in the very near future then ithink the company has no option but to close which means 41 people will be claiming benefits
i work for this company and have worked in this industry for the last 13 years through various different companies
i have personal knowledge that we are not the only company involved in this dispute i have not worked for about 8 weeks now and ive had plenty of time to catch up with mates throughout the insulation industry and they all say the same that british gas are slow with payment
in the last few weeks some of my work mates have had bank charges ,final demand bills one guy even had his tv removed from his home mortgages and rents are now 2 months in arrears and the bills keep mounting we have spoken to our msp,s and now all we can do is wait but for how long as far as i know they still owe us around £200,000-£250,000 this is a lot of cash to a small company like ours and unless it is paid in the very near future then ithink the company has no option but to close which means 41 people will be claiming benefits
Posted by: evybhoy, glasgow on 1:49pm Fri 16 May 08
as steffg says in the above comment there were never any problems when eaga where the main contractors for this scheme always paid on time
as steffg says in the above comment there were never any problems when eaga where the main contractors for this scheme always paid on time
Posted by: George Laird, Glasgow on 3:14pm Fri 16 May 08
Dear All
Why is that people think the non payment is just down to incompetence?
We have all seen that Scottish Gas is making a fortune at present so money is not the issue.
If the company Scottish Gas owes money goes down then the debt dies with them.
Is it possiblethat this could be no more than a shoddy corporate trick?
The SNP government should bring in a finanical bill requiring companies, national and local government to settle bills with 30 days after completion of contract with options and safeguards, if contracts are complex.
Yours sincerely
George Laird
The Campaign for Human Rights at Glasgow University
Dear All
Why is that people think the non payment is just down to incompetence?
We have all seen that Scottish Gas is making a fortune at present so money is not the issue.
If the company Scottish Gas owes money goes down then the debt dies with them.
Is it possiblethat this could be no more than a shoddy corporate trick?
The SNP government should bring in a finanical bill requiring companies, national and local government to settle bills with 30 days after completion of contract with options and safeguards, if contracts are complex.
Yours sincerely
George Laird
The Campaign for Human Rights at Glasgow University
Posted by: wxalexander, canada on 5:57am Sat 17 May 08
I presume that after this none of the small companies will take out contracts with Scottish Gas.
I presume that after this none of the small companies will take out contracts with Scottish Gas.
Posted by: Genie, Scotland on 9:39pm Sat 17 May 08
Somehow Scottish Gas administration of this fund brings to mind a picture of the poacher who is under another hat, also the gamekeeper.
I wonder just how much money has been withheld from Scottish Companies, money funded by the Scottish Government, to pay for thermal insulation measures for houses to help people to afford to heat their homes.
Now that the NAI have given an interview to BBC Radio Scotland expressing their concerns regarding the similar widespread experience of their members, I'm pretty sure that Centrica will be smoothing out some of the other small company debts in order to continue with the divide and conquer tactics they practise - email boxes would have been pinging on Friday, as suddenly blocked invoices, will be magically sorted out before anyone else wants to stand up and be counted - am I wrong???
It is obvious that the small companies who are doing this work are more committed to the ideal of energy conservation, and affordable heating than the huge machine that is British Gas, who continue to raise prices, mismanage the administration of payment for Grant Funded work done in Scotland, slowing up the process, creating backlogs of people who are anxious to have the work done, and thereby moving many more people into fuel poverty - it's not rocket science.
Somehow Scottish Gas administration of this fund brings to mind a picture of the poacher who is under another hat, also the gamekeeper.
I wonder just how much money has been withheld from Scottish Companies, money funded by the Scottish Government, to pay for thermal insulation measures for houses to help people to afford to heat their homes.
Now that the NAI have given an interview to BBC Radio Scotland expressing their concerns regarding the similar widespread experience of their members, I'm pretty sure that Centrica will be smoothing out some of the other small company debts in order to continue with the divide and conquer tactics they practise - email boxes would have been pinging on Friday, as suddenly blocked invoices, will be magically sorted out before anyone else wants to stand up and be counted - am I wrong???
It is obvious that the small companies who are doing this work are more committed to the ideal of energy conservation, and affordable heating than the huge machine that is British Gas, who continue to raise prices, mismanage the administration of payment for Grant Funded work done in Scotland, slowing up the process, creating backlogs of people who are anxious to have the work done, and thereby moving many more people into fuel poverty - it's not rocket science.
Posted by: Genie, Scotland on 9:58pm Sat 17 May 08
[quote]Now that the NAI have given an interview to BBC Radio Scotland[/quote]
Sorry that should read NIA - National Insulation Association
Now that the NAI have given an interview to BBC Radio Scotland
Sorry that should read NIA - National Insulation Association
Politics
INDEX
Comment | Read Comments (10)
