Sacked Northumberland Foods staff in move over pay
Sep 7 2010 by Brian Daniel, The Journal
TRADE unions representing sacked workers at a collapsed North East food factory have lodged claims over its failure to consult staff before laying them off.
Usdaw (the Union of Shop, Distributive and Allied Workers) and Unite have started moves which could see workers made redundant by Northumberland Foods at Amble given up to eight weeks’ pay.
The company ceased trading last month, with all 250 staff being made redundant. The closure came two days after the business had been placed into administration and after talks with a potential buyer broke down at an advanced stage. Last week, it was announced that Amble Assets LLP, the company which owns Northumberland Foods’ factory, production line equipment and other plant and machinery, had also gone into administration.
Now the two unions have filed “protective award claims” on behalf of their members who were made redundant.
The claims have been submitted on the basis that the company failed to carry out a 90-day consultation with workers or trade unions before announcing the redundancies, a requirement of any firm with more than 20 employees.
As Northumberland Foods is in administration, consent for the claims to proceed has to be given by administrator Begbies Traynor, as the unions would become creditors of the firm. If the administrator blocks the claims, that decision can be challenged in court.
Should they be allowed to proceed, the claims would eventually be determined by an employment tribunal.
If the claims are successful, money would be given to the workers by the Redundancy Payments Office.
The Journal has been told workers could be paid up to eight weeks’ wages if the claims succeed. Usdaw represents 77 hourly paid staff at the site, with the exception of the engineers, who are represented by Unite.
Jayne Shotton, area organiser at Usdaw’s Newcastle office, said spirits among her members were low but stressed the union is doing what it can to help.
She added: “Unfortunately there is not a lot you can do in a situation like this.”
Andrew Haslam, partner at the Newcastle office of Begbies Traynor, refused to comment on the union’s claims last night.