Trade union achieves £200k in compensation for McCowan’s employees

Posted on 18 Feb 2012

USDAW, the trade union representing employees at toffee-maker McCowan’s, won a compensation claim on the grounds of the company’s failure to communicate with the Union prior to the redundancies. A Glasgow employment tribunal awarded the 103 former staff compensation of 60 days pay.

Owner of the company New McCowan’s Ltd went into administration in September last year, and production at the factory was halted immediately. Despite efforts by administrators Grant Thornton to find a buyer for the company, it remains closed.

Alan McVie, USDAW area organiser, pointed out the lack of communication: “It has become apparent that McCowan’s knew they were in financial difficulty some months before they finally collapsed into administration yet the union and workforce were kept in the dark.”

“McCowan’s failure to consult with us and the workforce was quite unforgivable,” he said before adding: “McCowan’s failure to consult with us and their workforce was a missed opportunity and in the circumstances quite unforgivable.”

Mr McVie also mentioned that most of the former employees have not found other jobs, so the compensation will be welcome payment.”