Ex-SSI Steelworkers Awarded Pay Of £6.25m

Sacked steelworkers have been awarded a share of £6.25m in outstanding pay, following the collapse of the SSI plant on Teesside last year.

The Community union said the ruling, by an employment judge, meant that 1,100 former employees would receive up to eight weeks' pay from the Government's Redundancy Payments Office because of the lack of consultation on the site's closure.

It added that the workers could have shared up to £14m had SSI UK not been liquidated following its collapse last yearleaving almost 2,000 staff without jobs and Teesside mourning the loss of a vital, historic industry.

It was revealed in late January that more than half of those left looking for work after the Redcar plant's demise last September were still out of a job.

Commenting on the legal decision, Community's general secretary Roy Rickhuss, said: "This is a deserved victory for our SSI members and it is only right and proper that the Tribunal found in our favour because of the way these workers were treated.

"As the lead union in the claim the diligent preparation and hard work of our team of staff and lawyers has been rewarded today and our members will get what they are entitled to. This demonstrates the value of trade union membership.

"However, as we have said before, this small victory will not compensate for the devastation from the end of steel making."

The UK steel industry has come under pressure over its competitiveness amid a deluge of cheap imports from China and weak demand in the global economy.

The UK's biggest producer, Tata Steel, and other companies have cut thousands of jobs in a bid to cut their costs.

nment announced last year it was to provide greater support to steel makers by removing green levy contributions from their own energy bills.

It has also defended its attempts to limit Chinese imports through the EU.

Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, said of the ruling: "It is a sorry state that a union had to push this through by legal means as it shows, yet again, the Government have nowhere near coughed up the money they said they would give."