Orchard House Foods: Ex-workers owed thousands in redundancy pay

Justyna Lorbiecka (left) and Leanne Lewinss say they have not received their redundancy money and are unable to find out when it might be paid

Workers who lost their jobs at a food and drinks factory claim they are being "ignored" by their former employers who owe them thousands in redundancy pay.

Orchard House Foods, which supplies the likes of M&S, Tesco and Pret A Manager, closed its Gateshead plant in December.

Former employees said they have had to use foodbanks and take out crisis loans since they were made redundant.

The company said it was appointing administrators in an attempt to raise funds so it could make the payments.

Orchard House Foods employed 430 people at Team Valley Trading Estate and announced plans to close the site and move production to Northamptonshire in August.

On Wednesday, the company declared it was entering administration.

When the Gateshead factory shut last month staff received emails to say the owners could not afford to make redundancy payments until January, and that it was working to secure investment in order to come up with the funds.

Workers told BBC Radio Newcastle they have still not received any money and claim they are unable to find out when it might be paid.

Justyna could not afford to buy Christmas presents for her two children

Justyna Lorbiecka, 33, said she is owed about £10,000 in redundancy money which should have been paid on 6 January, but instead has received just £220 from her former employer.

The single mum said she could not afford to buy her two children Christmas presents.

"I have an absolutely empty fridge. I have nothing - we are just buying basic foods," she said.

"I'm very stressed. I cry all the time. I am very depressed. I can't get any help."

Ms Lorbiecka managed to get another job after leaving, but could not take it because she cannot afford the travel costs to get there.

"I had to decide whether to spend money on milk or bread for my kids or money for the bus," she added.

'Crying on the phone'

Leanne Lewins, 40, from Gateshead, began working at Orchard House Foods as a 17-year-old and worked her way up to production manager.

Her boyfriend, William Lackenby, 39, also worked there for six years.

Both were made redundant and Ms Lewins said the couple were owed about £20,000.

She is due her money at the end of January but her partner should have already received his.

Leanne Lewins and boyfriend William Lackenby, pictured with his daughter Billie-Jo, both worked for Orchard House Foods

"It's money that would have made a huge difference to our lives," she said.

Their plans to try for a baby through fertility treatment, using money from the redundancy settlement, have been put on hold.

"I'm devastated about it," Ms Lewins said. "I have an auto-immune disease and, at 40, I'm on the later side of life.

"It's heart-breaking, we had plans to start our family together. I don't even know now when I'm going to be able to look into fertility treatment.

"I'm really anxious all the time now. I had a very high demanding job and I did it very well. I'm a strong person normally but I feel a bit of a shell."

Ms Lewins said there had been no communication from Orchard House Foods.

"The email that was sent out just left an enquiries email, but nothing to help the people who were left with no money the next day.

"No resources, no helpline, no links for places to go and get help with financial difficulty. I've had people crying on the phone, telling me their children feel anxious."

Orchard House Foods announced the closure of its plant on Gateshead's Team Valley Trading Estate in August

An employer should pay a redundancy settlement on the date an employee leaves work, or an agreed date soon after, according to Citizens Advice.

Payments not made can be claimed for through an employment tribunal.

Employees made redundant by an insolvent company can make a claim for monies through the government's Insolvency Service.

In a statement, Orchard House Foods confirmed it had started the legal process to appoint an administrator.

"We have had to take this action given the extremely challenging economic and trading conditions that have badly hit Orchard House Foods," a spokesperson said.

"The economic conditions have meant increased input prices and overheads, and this has significantly increased pressure on our cash position."

It said once an administrator is appointed, former employees in Gateshead "will be able to claim any outstanding monies owed", including the delayed redundancy payments, via the Insolvency Service.

"We expect this to happen as soon as the administrator has been appointed and we will be providing them with additional support to help with their claims."