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Economics, government & businessLatest NewsEmployee relationsDispute resolutionEmployment law

MG Rover workers get £20m compensation

by Mike Berry 3 May 2005
by Mike Berry 3 May 2005

Compensation totalling £20m has been paid out to workers made redundant by the collapse of MG Rover.

The government said the payments, averaging £5,000 per worker, have been paid to 4,000 members of staff, ahead of schedule.

Staff affected by the closure of the plant in Longbridge, West Midlands, had feared they would only receive a maximum of £3,300.

But trade and industry secretary Patricia Hewitt said average payouts had been much higher. She said everyone who put in a claim had received money, which was given under statutory payment rules and will be footed by the taxpayer.

Hewitt said the final payment package to the some 5,500 workers affected would be around £50m, about £10m more than originally announced.

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