Unite wins payout for former YM workers

YM Group: failed to consult over web division
YM Group: failed to consult over web division

Unite has been successful in its Protective Award claim against YM’s web businesses, with hundreds of employees – including non-union members – set to receive payments as a result.

YM Chantry, York Mailing and Pindar Scarborough collapsed into administration on 31 March 2022, with workers unpaid and around 600 subsequently laid off.

Last Friday (9 June) a judge at Leeds Tribunal Service found in favour of the union’s claim that YM failed to consult.

“We made a claim on behalf of 300-plus Unite members at YM’s plants, and the judge has made an award to all employees on the back of Unite’s claim,” explained Unite regional officer Darren Rushworth.

“For the benefit of the majority it’s been a really good outcome. It has brought the whole thing to a close.”

The former employees have been awarded the maximum 90 day award, capped at eight weeks and £571 per week based on last year's rate.

Rushworth added: “It galls me that some of the people who contributed to the situation will also get the fruits of our labours.”

At the time of the firms’ collapse, Rushworth described the behaviour of YM’s directors as “absolutely disgraceful” after staff were promised they would be paid and encouraged to do overtime.

The latest filings from administrators at FRP Advisory show that more than £20,000 has had to be spent to bring the accounts for its web division up to date – despite YM directors including CEO Stephen Goodman and CFO Lee Richardson, both accountants, previously being granted more time to fulfil this requirement.

In the individual updates for YM Chantry, York Mailing and Pindar Scarborough, FRP Advisory stated that, for each company “the administrators have paid the sum of £7,000 to J9 Advisory LLP in the period for their assistance provided to the directors in producing the company’s Statement of Affairs.”