The Unite union has secured an £8.4m payout for hundreds of Leyland DAF staff who were unfairly dismissed 16 years ago when the manufacturer went into liquidation. The result of the legal battle involving 1,400 union members, who worked at Leyland DAF's three sites in Birmingham, Lancashire and Glasgow, means they will each receive between £5,000 and £6,000.
Commercial Motor has learnt that several potential beneficiaries see the payout as "a bonus" and welcome the result after such a long period of time. However, the insolvency expert dealing with claimants' payments, Larry Jobsz, for DB Consultants, says: "Some of them are not happy. We are dealing with each one on its merits, so we do not wish to comment further."
Unite's solicitor, Rowley Ashworth, says the failed company's redundancy selection process in 1993 was flawed and focused on older workers and those experiencing poor health. Rowley Ashworth marketing manager Stephanie Lennon adds: "A claim was put to the liquidator and the union was able to supply evidence to those people of how long they had worked there and their entitlement."
A settlement has been negotiated based on realised assets and the liquidator intends to make an initial part payment of around £2,000 per claimant, with the remainder to follow later this year.
Derek Simpson, joint general secretary of Unite, says: "This is a clear example of Unite not giving up the fight for justice for our members despite the legal obstacles that faced us. It was the evidence that Unite gathered that enabled the value of the claims to be calculated and subsequently agreed for the benefit of our members and their families."
