Ex-Atlas workers' fears over £1.5m compensation

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Saturday, January 30, 2010
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This is HullandEastRiding

FORMER caravan workers who won a compensation claim worth at least £1.5m have been left unclear about how much money they will be able to receive.

The 333 workers, who lost their jobs when west Hull caravan manufacturer Atlas Holiday Homes went into administration, took the company to an employment tribunal.

As first reported on the Mail's website yesterday, they were able to prove they had not received a paid 90-day consultation period, as required by law, when they were made redundant in December 2008.

The order, made at the tribunal at Wilberforce Court, Alfred Gelder Street, city centre, means each staff member can now claim 91 days of wages back against the company, through the administrators BDO Stoy Hayward.

Based on a minimum payment of £350 per week, each worker is owed about £4,550.

However, the workers have been left wondering exactly how much of their money they could recover from a firm, which is already £20m in debt.

While they wait for their money, individual employees can now claim a maximum of eight weeks' pay, at a maximum of £350 per week, from a Government-funded scheme that pays employees outstanding monies when their employer cannot afford to.

This means each worker is guaranteed at least £2,800.

But the former workers said they have realised they may never see the rest of their money.

Simon Field, 35, of east Hull, worked on the shop floor of the Wiltshire Road factory, for 14 years.

He said: "I think it's great news. I think we deserve it.

"The company left us high and dry at Christmas time and tried to hush us away. This means we will all at least get some of what we are owed.

"But even though we get eight weeks back, most of us were on more than £350 per week anyway.

"We are basically in a no-win situation, but we are just trying to get back what is ours."

Dave Oglesby, of trade union UCATT, which represented many of the workers, said the compensation order had been a long time coming.

He said: "It was 2008 when our members were locked out from the factory. We've waited a long time for this.

"It's been a great victory for us in terms of getting justice for our members."

More than £20m is owed by the company and some of the money has already been paid, but the administrators have not made any payments to the employees to date.

However, the administrators themselves have billed £1.3m in the last year and paid themselves £900,000 already.

Solicitor Nathalie Stewart, of Myer Wolff Solicitors, who represented the workers, said: "This ruling is the first time anyone has actually acknowledged the fact these workers were not treated well.

"The employees were not consulted and not informed, which is against the law and this has now been recognised.

"We would prefer them to get everything they are owed and we know there is money in the pot, but we also know the firm owes more than £20m."

The claim by the workers was not contested by Atlas.

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  • Profile image for This is HullandEastRiding

    by Ex-Atlas employee, Hull

    Monday, February 01 2010, 12:23PM

    “I would like to thank the ex-employees and UCATT for pursuing this compensation claim. It comes as welcome news to all of us who have experienced difficult and turbulent times since Atlas.

    Mark, West Hull - it is unlikely that the compensation will come from the newly formed Atlas Leisure Homes as it has different owners to Atlas Holiday Homes. I hope that those who are working their currently retain their jobs. As for debt - allegedly, other large manufacturers within our area were operating on much, much larger debts at the time of Atlas Holiday Homes' demise. The hope now is that all will continue to thrive and employ.”

  • Profile image for This is HullandEastRiding

    by oswald, Hull

    Saturday, January 30 2010, 7:57PM

    “Awe, I lost 12k when a contractor went under, did the goverment bail me out ?

    The receiver is there to ensure all the money that the tax man don't pocket goes into there flash cars & offices....”

  • Profile image for This is HullandEastRiding

    by Gordy, Hull

    Saturday, January 30 2010, 6:09PM

    “Stop whining and take what you can get. The country is full of people who got nowt and still have nowt. Be thankful.”

  • Profile image for This is HullandEastRiding

    by peter, Hull

    Saturday, January 30 2010, 5:51PM

    “Mark,West Hull.
    You are talking about business men that can buy and sell you regardless whether they have gone under or not.”

  • Profile image for This is HullandEastRiding

    by ex atlas wheres the profit gone, hull

    Saturday, January 30 2010, 5:29PM

    “Ten Jasmine lodges were built/ finished off in the twin unit factory at the end of April 2008,Tweenty caravans a week have been built from May 2009 until December 2009 when Atlas Leisure re-opend the company. Wheres the profit gone and how do BDOS account for it?”

  • Profile image for This is HullandEastRiding

    by mark, west hull

    Saturday, January 30 2010, 8:08AM

    “Whilst i whole heartedly agree that they deserve the payout i wonder if this million pound payout will be the straw that broke the camels back of Atlas and finally sinks this company.

    That in turn will mean that the new workforce at Atlas will no doubt be treat the same as the ex worforce in turning up for work one day only to be told the company has ceased trading.

    It does make you wonder how much more in debt this company can go without seeing a viable solution to get out of it. I just hope that there is a happy resolution to this story for all parties!”

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