MacFarlane 270 Win Payday

Date: 2009-01-08

8 January 2009, Leeds ENGLAND – A Protective Award granted by Leeds Employment Tribunal means that 270 employees made redundant by Macfarlane Transport Holdings Ltd on 3 July 2008 now qualify for compensation from the Redundancy Fund, unbeknownst to most of them.

The firm laid off 270 workers from their depot in Leeds and elsewhere after going into administration in a manner described as ‘diabolical’ by former employees.

Eleven employees, mostly members of Unite, the UK’s biggest Trades Union, took their case to the Leeds Employment Tribunal, alleging the firm had given no indication they would enter into administration, and failed to consult with employees prior to the redundancies.

The tribunal before Judge Cox directed that employees dismissed as redundant on 3 July 2008 be paid for a 90-day period from that date, meaning the Award applies to all employees made redundant on 3 July.

Solicitor Toni Haynes of Morrish & Co, representing the employees, explained today “Macfarlane was legally obliged to consult with employee representatives 90 days before the dismissals.

“Because they failed to do that, and also failed to hold elections to nominate representatives, we brought a claim at the Employment Tribunal for a Protective Award. The Tribunal upheld the claims and made an order for a Protective Award for a Protective Period of 90 days for all employees made redundant on 3 July 2008. This means that all employees made redundant on 3 July 2008 may qualify for further compensation of 90 days pay.

“The company is in administration, so any payment from them is unlikely. However the employees potentially qualify for payment from the Redundancy Fund, which is a government scheme set up to protect people from this kind of situation,” said Haynes.

Hailing the ruling, Christopher Cornock of Castleford, employed as a HGV driver, who is a member of Unite, said “I’m very relieved that it went our way, for once. The Union’s support was very good indeed, as was Morrish & Co. I recommend joining a Union, because they are very helpful, very understanding and their support has been fabulous, especially towards the drivers.”

Gary Smith of Leeds, another one of the employees who pursued his claim privately, said “I was a member of a Union, but when the firm’s owners said they weren’t recognising Unions anymore, I dropped out. I am now definitely thinking of joining the Union again.”

George Senior of Leeds, another driver made redundant along with his forklift driver son, said “I went to work on a Wednesday at my usual 6 o’clock start. They made us wait for half an hour, and then told us all to go home. I’d been with Macs for 6 years, and my son had been there 5 years. I think any of the lads who worked for Macfarlane, hearing about our win, should put a claim in for it. What Macfarlane Transport did was diabolical. There was no need to go into receivership the way they did, treating the employees that way.”

Of the support he received from Unite, Mr Senior said “The Union will be there to back you up, if you need anything. Not everybody is up to date on the law, because it keeps changing all the time, especially in transport. The Union keeps up to date for you, and helps you in other ways, as well.”

Richard Bedford, Unite regional Industrial Organiser, said: “Thankfully the Redundancy Fund acts as a safety net for people whose layoffs have not been handled properly. But the fund comes from taxpayer’s money and has its limits. Macfarlane should have done the decent thing and consulted with the representatives, paid their employees 100% of this money, and not left it to the taxpayer to clean up after them.”

“The other employees of Macfarlane, who were laid off on 3rd July 2008 or in the 90 days following, whichever branch they were at, are all protected by this Award and they should contact their Union, their solicitor or the Redundancy Fund as soon as possible.

“In these tough economic times, a lot of people up and down the country are going to find themselves in similar situations as our members who brought this case. They need to know their rights,” said Bedford.

For further information, please contact Vanessa Charters, Head of Communications, Morrish & Co Solicitors, DD 0113 297 9844, Mob 0759-5564-764 or Richard Bedford, Regional Industrial Organiser, Unite the Union, Tel 0113-236-4830