A Dorset structural steel firm has resigned its membership of the Confederation of British Industry (CBI) with immediate effect.

Christchurch-based John Reid & Sons (Strucsteel) Ltd – known as REIDsteel – left the business lobbying group after further serious allegations emerged about misconduct.

Simon Boyd, Managing Director, has also resigned his position as a founder member of the CBI’s manufacturing council.

The business – which employs 130 people – acted immediately, citing allegations of misconduct at the organisation as completely incompatible with its own company values.

Simon said: “It is wholly inconceivable that REIDsteel can continue any association with the CBI following the latest, incredibly serious allegations.

“We have taken the decision to resign our company’s corporate membership and my personal position on its manufacturing council with immediate effect.

“The latest allegations are deeply concerning and completely at odds with our company’s values and culture where respect and inclusivity are absolutely paramount.”

REIDsteel previously said that it was reserving judgement about its CBI membership pending further developments.

Simon added: “Our thoughts are with those at the centre of the latest allegations, and anyone who has been negatively impacted in any way with failings at the organisation.

“Our thoughts are also with the many hardworking personnel at the CBI who do work with integrity as well as member businesses who do not tolerate misbehaviour or a culture that allows misbehaviour to happen.

“It must be emphasised that the overwhelming majority of businesses in this country are reputable and responsible companies, which make a huge contribution to the UK’s economy, tax receipts and prosperity.”

The latest allegations, reported in The Guardian, surround a second allegation of rape. It also revealed details of a case where a female employee was stalked by a male colleague.

The CBI represents 190,000 businesses. The government has suspended engagement with the group while the law firm Fox Williams conducts an investigation.

REIDsteel designs, engineers, makes and constructs all kinds of steel structures and buildings worldwide.

The business – which has a ‘one team ethos’ – remains family owned and has exported to more than 140 countries so far in 104 years of trading.