ASW workers win pay victory

Former employees at Allied Steel and Wire (ASW), which collapsed three years ago, won a victory in the employment tribunal yesterday, securing compensation of 90 days' pay, because of the failure of the administrator, KPMG, to consult the union before making the entire workforce redundant.

ASW went into receivership in July 2002. KPMG, the tribunal concluded, flouted employment rules by failing to talk to the recognised trade union, and give 90 days' notice, before laying off the company's staff.

As well as losing their jobs, many former ASW employees are likely to lose the majority of their pensions because of the hole in the company's final-salary scheme. Many of the former ASW workers are campaigning to secure compensation from the Government.

Michael Leahy, the general secretary of Community, the union that represented the workers, said: "This is great news for our ASW members, many of whom suffered financial hardship ... since they lost their jobs."

The chairman of the ASW campaign committee, Brian Silver, said: "Although KPMG could appeal, I hope they ... will ensure payments are made as swiftly as possible."