A FINANCIAL crisis facing one of Hereford's biggest employers, Special Metals Wiggin, could see the firm sold off to help pay debts crippling the US parent company.

September 11 is being blamed for a 25 per cent downturn at the Holmer Road plant and an economic collapse that has pushed the American corporation to the brink of bankruptcy.

And problems at the Hereford arm of the multi-million dollar business are being compounded by industrial action over a one per cent pay offer, rejected by union bosses.

Richard Shacklady, Hereford director of operations, said: "For the year ending December 31, 2002 the Hereford operation reported a trading loss of over £500,000.

"To maintain our financial viability and help secure the future of the Hereford operation, a number of cost reduction measures were implemented in 2002 including the difficult but necessary steps to further reduce the staffing levels of our salaried workforce."

Though no decision has been made concerning the future of the company and its 820 employees, bosses could offer no guarantees the firm would be sold as a going concern, or give assurances over job security.

A number of 'interested parties' are known to have toured the site with a view to purchasing it.

The company claims it is against this background the one per cent pay offer was put to the workforce, who rejected it in favour of a three per cent claim.

Phil Cogzell, senior shop steward for the GMB Union, said: "Our members are not very happy with the situation as shown with an 84 per cent rejection of the offer.

"Our demands are in line with inflation. All we want to do is keep our heads above water."

With the situation deadlocked and overwhelming support for industrial action, a six-day strike has been called, starting at midnight on February 19 until midnight on February 25, a decision criticised by the company.

Personnel manager, Robert Hunt said: "The decision of the GMB to pursue their demand for a three per cent increase on to basic rates by undertaking strike action at this time is very serious and puts jobs at risk in all sectors of the plant."

The company's problems stem from a downturn on both sides of the Atlantic, forcing the Special Metals Corporation in America to 'file voluntary petitions for reorganisation' under Chapter 11 of the US bankruptcy code.

Chapter 11 involves the rehabilitation of a debtor to allow the use of future earnings to pay off creditors.

With the company struggling to keep its head above water and an increasingly dissatisfied workforce, Herefordshire Council's cabinet member for economic development, Chris Chappell, has offered to step in as a mediator.

He said: "Special Metals is a very important employer in the county and we're saddened to hear of the difficulties this company currently faces.

"Due to the current situation, union action, including a strike, is the last thing Herefordshire's economy needs.

"As a result I am prepared to talk with local GMB representatives to try and overcome this impasse and mediate a way forward."

Both county Members of Parliament were quick to offer their support and help, Hereford MP Paul Keetch saying: "I have spoken directly to representatives at the company and whilst they acknowledge times are tough, they have assured me they are making no announcements of job cuts or closure."

Leominster MP Bill Wiggin, who is a descendent of company founder Henry Wiggin, added: "It is sad because a lot of people's jobs depend on this company.

"I hope that things improve as we really are facing a crisis in Hereford with problems at Bulmers and Sun Valley.

"I would be prepared to do anything possible to help the situation."

n Bulmers' crisis latest: see page 2