Former steelworkers win notice-period compensation

Hundreds of former employees at failed steelmaker Allied Steel and Wire have won a victory at the employment tribunal securing compensation of 90 days’ pay.

The compensation was awarded because of the failure of the administrator KPMG to consult the union before making the entire workforce redundant.

Allied Steel and Wire went into receivership in July 2002. KPMG, the tribunal concluded, flouted employment rules by failing to talk to Community – the recognised trade union – and give 90 days’ notice, before laying off staff.

As well as losing their jobs, many former Allied Steel and Wire employees are likely to lose the majority of their occupational pensions because of the hole in the company’s final-salary scheme. Workers are currently campaigning to secure compensation from the government.

Michael Leahy, the general secretary of Community, said: “After three years, during which time we lost an original tribunal [then] won an appeal, we have finally won compensation on their behalf.”

KPMG said the compensation ruling was against Allied Steel and Wire and the money would come from the sale of the firm’s assets.

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