Payouts for more paper mill workers over dismissals

Calum Mckay
Image caption,

Former mill worker Calum Mackay said the decision was a relief

  • Published

Hundreds of former paper mill workers who were made redundant without being properly consulted are to receive a payout worth more than £1m.

Stoneywood mill – which operated for more than 250 years – went into administration in September 2022 and dismissed many employees with immediate effect.

An employment tribunal judge earlier ruled that about 75 of the workers would be awarded compensation.

However solicitors representing Unite said the remaining 225 or so who had been awaiting claim outcomes would now also receive payments. Each worker is expected to receive an average of about £4,000.

Joint administrators Interpath Advisory said it did not wish to make any comment.

The mill’s problems were blamed on the Covid pandemic and economic challenges facing industrial manufacturing businesses, including rising energy costs.

Unite launched a mass legal action on behalf of workers, claiming a correct consultation should have been carried out before staff were dismissed.

Calum Mackay, a former employee and union convener at the mill, told BBC Scotland: “It’s a feeling of great relief that has been a long time coming and I’m sure the members will be very welcoming of these funds that we’ve been waiting so long to receive.”

Image caption,

The mill closed in September 2022

Mr Mackay said the length of time workers had been made to wait before their claims were approved had been difficult.

“It’s been a nightmarish process, at times very humiliating,” he added.

“Nobody should have to go through this after losing their livelihood.”

Thompsons Solicitors, which represented Unite, said it was "delighted on behalf of the workers".

Unite legal officer Mark Lyon hoped the move would bring people closure, but said there was still a feeling of resentment.

He said: "They gave so much service and devotion to an employer who chose to close the factory at a moment’s notice and make them all redundant.”

Related topics