HUNDREDS of sacked factory workers are set to get a share of a £1.2million payout after they won a legal action over their flawed redundancy process.
Stoneywood paper mill, based in Aberdeen, went into administration in September 2022 after operating for over 250 years.
Trade union Unite lodged a mass legal action against Arjowiggins Scotland – the company which owned the mill – on behalf of around 300 members who were dismissed.
They claimed their members had not been properly consulted over their redundancies.
Tonight, the employment tribunal handed down favourable judgements covering the protective award claims over Arjowiggins Scotland’s failure to enact a 45-day consultation period for the former workers.
A protective award is compensation that can be awarded where 20 or more employees are made redundant because an employer did not consult before any redundancy announcement.
The judgement covers all manual workers dismissed on September 22 2022 and in the 90-day period thereafter.
Unite said it understands that the average compensation award per worker is likely to be in the region of £4,000 which means the total award will amount to around £1.2 million.
Unite general secretary, Sharon Graham, said: “It’s terrible news when any company goes into administration and workers lose their jobs.
“However, when a company like Arjowiggins fails to obey the law, then Unite will hold them to account.
“We are pleased to finally secure some justice and financial compensation for the Stoneywood paper mill workers.”
Mark Lyon, Unite legal officer welcomed the judgement.
He said: “Unite is delighted that the employment tribunal has handed down judgements in favour of around 300 Unite members.
“This highlights that when a company behaves illegally, then Unite will use every legal avenue and tool possible to secure justice.
“The final compensation amount is likely to be around £1.2 million meaning the average award per worker will be around £4,000.
“Let this decision be a stark reminder to all companies, if you fail to abide by the law, then Unite will fight you every step of the way.”
The business was sold to a new parent company in 2019 securing the jobs at the paper mill.
However, Interpath Advisory was appointed as joint administrators in 2022.
Issues including the Covid pandemic and economic challenges such as rising energy costs were blamed for the closure of the factory.
It comes as hundreds of staff at a major delivery firm were told on Tuesday their jobs were being axed in weeks.
Read more on the Scottish Sun
Workers at the courier service Menzies Parcels face being sacked by the struggling business next month.
It’s understood Menzies Distribution informed staff that it is cutting possible hundreds of jobs with the last day being at the end of February.
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