Socialist Worker

Administrators put workers at back of queue

Issue No. 2146

Visteon brought in the accountants KPMG as administrators to push through the closure of its plants.

A spokesperson for KPMG said, “It is very simple. The company is insolvent. Ford and Visteon UK are completely separate companies. There is no legal basis for the claim [that they are linked].

“As a court appointed administrator called in by Visteon UK we make the redundancies. It is a clear legal process and it is not being treated in any different way to any other.”

KPMG is one of the world’s biggest accountancy companies. It has been at the heart of the disastrous privatisation of public services in Britain.

The day after it declared its lack of concern for Visteon workers, KPMG was hit with a $1 billion lawsuit over claims that its “grossly negligent” role in the auditing of US subprime mortgages helped to trigger the financial crisis.

KPMG is accused of covering up “catastrophic” problems at New Century – which was once the largest subprime mortgage company, but is now bankrupt.

KPMG has denied any wrongdoing in the case.

The view of the administrators is that Visteon UK workers are simply creditors like any other, except in one respect – they should be at the back of the queue.

Across the country bosses are trying to change contracts as they want to renege on giving workers what they owe them. But the Visteon struggle has shown that the power exists to beat them.

Click here to subscribe to our daily morning email newsletter 'Breakfast in red'

Mobile users! Don't forget to add Socialist Worker to your home screen.