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Former workers of steel company SSI have been awarded a share of £6.25 million over lack of consultation when they were made redundant.
Thai-owned company SSI shut its steel plant in Redcar in September 2015, leading to the loss of 1700 jobs.
The Community trade union took tribunal action on behalf of more than 1,100 members who lost their jobs after the closure. Those who were part of the claim are set to receive up to eight weeks’ pay from the Government’s redundancy payments office.
According to the union, the workers should have been entitled to more than £14 million, but because the company went bankrupt, they can only get a share of what the Government pays.
Tribunal judge Jeremy Hargrove said of the claim: “There was no consultation which complied with specific requirements. There wasn't any point in bringing a claim against SSI as, I take it, there is no money."
Roy Rickhuss, general secretary of Community, said: “This is a deserved victory for our SSI members and it is only right and proper that the tribunal found in our favour because of the way these workers were treated.
“As the lead union in the claim, the diligent preparation and hard work of our team of staff and lawyers has been rewarded today and our members will get what they are entitled to. This demonstrates the value of trade union membership.