BusinessBusiness RecoveryTrade union enters KPMG-Land Rover row

Trade union enters KPMG-Land Rover row

Engineering trade union Amicus has defended Land Rover in its dispute with KPMG/UPF, saying the role of accountancy firms should be scrutinised more closely.

Amicus urged the government to review contracts with KPMG, administrative receivers for UPF, saying its demand of £35m, threatened thousands of jobs.

A spokesman from Amicus told Accountancy Age.com: ‘The government should look at what accountancy firms like KPMG are doing. What they could have done would have put the company out of business.’

‘We are asking for an investigation into the role of accountancy firms. They have to reach some compromise on deals or thousands of people will be out of a job.’

The spokesman condemned KPMG’s aggressive stance and said they should enter into negotiations with a ‘less bullish’ attitude.

He said: ‘They should come into an arrangement that suits both companies.’

Ken Jackson, general-secretary of Amicus added: ‘If KPMG continues to behave like industrial pirates then business and government should go elsewhere.’

The engineering trade union said KPMG’s decision to increase prices by between 100% and 200% was to blame for UPF not finding a buyer.

Amicus’ statements come after a ruling on Friday in which Land Rover won an injunction forcing KPMG/UPF to continue supplying the car manufacturer with chassis.

KPMG said the judgement was ‘sustainable’ and would continue to look for a negotiated settlement which would secure the future of UPF.

But receiver Mark Orton added: ‘I trust that Land Rover will come to a negotiating table as the current ruling is not a long term solution for UPF and its employees.’

KPMG, which is the UK’s biggest receiver, said would continue to negotiate with Land Rover and hopes a ‘successful resolution will be found quickly.’ It continues to look for a buyer for UPF.

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