Defunct Centrabell forced to pay out 120,000 to ex staff

Unite members who worked for Centrabell, the defunct Swindon-based company formerly known as Tekprint, have won an employment tribunal claim totalling 120,000 against the company.

On 14 June 2007 staff of Centrabell received the shock news that the business was closing and they would be made redundant with immediate effect. The company formally went into liquidation in September 2007.

The trade union brought the case on behalf of its 22 members claiming the firm had failed to consult with it or the workforce prior to closure.

Martin Hodges, regional officer of Unite who gave evidence at the tribunal hearing said: "The union was given no warning of the closure, despite the fact that we were in regular contact with the company."

The Bristol Employment Tribunal held that the company had made no disclosure of the proposed redundancies to the union and that it was only the forceful representations of Unite's Martin Hodges that prompted Centrabell to even provide letters of dismissal to the workers.

The tribunal went on to award each of the 22 Unite members compensation of 90 days' pay totalling more than £120,000.

Hodges said: "The decision is great news for our members who worked for Tekprint. The tribunal's findings should be a warning to employers who close companies without consulting their staff.

"Given the complexity of the case and the costs involved, it is unlikely that any group of non-union workers could have taken this case through to its conclusion. This demonstrates what can be achieved by unions for their members, even after a company has closed."