Former Stewart Milne workers share £1m payout after collapse

James Brander worked for Stewart Milne for more than 40 years

Workers who lost their jobs after the Stewart Milne Group collapsed have been awarded compensation totalling about £1m, BBC Scotland News has learned.

The construction firm went into administration last year with the loss of more than 200 jobs.

They have now been awarded about £5,000 each.

One of the former workers, James Brander, 66, said he was pleased to receive the financial boost more than 18 months after losing the job he enjoyed.

The company was founded in 1975 by businessman and former Aberdeen FC chairman Stewart Milne.

Starting out as a young electrician, he went on to dominate the construction business in the North East.

Mr Milne had postponed retirement in an attempt to secure a future for the firm.

At the time, he said he was "devastated" by the collapse of the company and was "struggling to accept it".

Stewart Milne Group went into administration at the start of 2024

Former employee Mr Brander, of Macduff, Aberdeenshire, was a painter and decorator with the Stewart Milne Group for 42 years.

However everything changed when the company went into administration in January last year.

Construction ground to a halt at sites across Scotland.

Workers were given no notice and were told to apply for compensation from the UK government.

'I enjoyed my work'

"There was rumours that things weren't good," Mr Brander told BBC Scotland News.

"On Monday 8 January, we got a message round the site saying we had to be in the office.

"We were told we were being made redundant, get your own belongings, that was it, finished.

"I was sad because I enjoyed my work, I loved working for Stewart Milne, the people were ace. I was grateful it didn't happen before Christmas because we got our holiday pay."

He has now received his compensation cheque and recently retired.

"I know it's money you're due, but it's appreciated. Fortunately it happened."

He said others were "over the moon" to have "money in the bank".

Asked how he now felt about what had happened last year, he said: "All good things come to an end."

Paul Kissen of Thompsons Solicitors said former workers were delighted

Paul Kissen is an employment lawyer at Thompsons Solicitors who acted for the former employees.

He said: "These workers were all dismissed without any consultation or any warning.

"After what has been a very hard-fought battle over the best part of 18 months, they have finally received in total about £1m, which is about £5,000 each, and they are all absolutely delighted."

He added: "The mass claim is called a protective award and it's a type of group claim where 20 or more employees are dismissed as redundant by an employer and there's no consultation process.

"When a company has gone into administration or liquidation, the money is paid to everyone from the national insurance fund, from the redundancy payment service, so it's the same place that other payments that people get who are made redundant comes from - for example redundancy pay.

"There's just over 200 former employees involved in the claim, all of them have been successful in getting the protective award."

Steven Dillon, from Unite the Union, said: "It's good they are getting what's due to them, unfortunately they should have got a lot more."

Mr Milne declined to comment.