Union fighting for redundancy pay after Mortons Rolls collapse

All 230 staff at Mortons Rolls were told that they were losing their jobs when the Glasgow company collapsed.

GMB union fighting for redundancy pay after Glasgow company Mortons Rolls collapsed Mortons Rolls via Facebook

A union is fighting for redundancy pay for workers laid off after a famous bakery collapsed into administration.

All 230 staff at Mortons Rolls were told that they were losing their jobs when the Glasgow company collapsed in March, but their claims for redundancy pay have been refused, the GMB Scotland union said.

The much-loved Glasgow brand was saved from closure and the factory in Drumchapel recommenced production on March 19 with around 110 workers, half of which were previously employed at Mortons before the company ran into difficulty.

Established in 1965, Mortons Rolls became a much-loved breakfast staple across Glasgow and the west of Scotland.

The Redundancy Payment Service (RPS) has now ruled the firm was still solvent when it was taken over.

The union said that all jobs were transferred to Mortons’ new owners Phoenix Volt, before the company collapsed. 

It added that under TUPE employment regulations, those staff retain the same terms, conditions and rights.

GMB Scotland is now taking legal advice as the union fights for redundancy pay and is writing to politicians urging them to support the sacked workers.

Anyone who works for a company for more than two years is due redundancy pay depending on length of service and the government agency said Phoenix Volt should be making the payments. 

Around half of the workforce returned 15 days after Mortons went under but on new terms and conditions.

In letters to laid off workers, the RPS said their jobs were not made redundant but previously transferred to Phoenix Volt when both firms were solvent. 

It said the new owners were responsible for paying workers any money owed.

GMB Scotland organiser David Hume said: “When Mortons Rolls collapsed, the workforce was told they were being redundant, the firm was going under and their jobs were lost. There was no suggestion their roles had been transferred to new owners.

“More than 100 of those workers were not asked to return when the factory resumed production. They were made redundant and deserve redundancy pay.

“We are now urgently seeking legal advice on what exactly happened at Mortons Rolls, including issues around TUPE, unfair dismissal and redundancy pay. This is not about if these workers are due payment, it is about who pays it. Someone is liable and they will be held liable.

“These workers were treated badly then and are being treated appallingly now. We hope the politicians who welcomed the rescue of Mortons Rolls should be equally supportive of the workers laid off but now forced to fight for redundancy pay owed them.”

STV News has contacted Mortons for comment.

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