Unite Secures Legal Victory for Sacked Electricians and Heating Engineers

LONDON - Unite members who worked for an Ipswich firm have secured a legal victory
and substantial compensation following their successful claim at an
Employment Tribunal. Unite, the UK’s largest engineering union, has been
pursuing legal cases on behalf of 14 sacked members.

The electricians, pipefitters, heating engineers and apprentices were
employed at former Warners M&E Ltd in Ipswich, a well known local mechanical
and electrical contractors established in 1845. The workers and their union
representatives were called to a meeting where the majority of workers were
immediately made redundant with no notice or consultation as a result of the
company going into administration. Many of the staff first heard of their
plight on the local radio before the meeting had commenced.

In a decision at the Employment Tribunal the 14 members each secured a
share of compensation exceeding GBP132,000 including damages for loss of
statutory rights and a protective award of 13 weeks pay per member following
the company’s failure to consult with them and their union.

Unite Regional Secretary, Steve Hart, said: “We are pleased that the
tribunal found in our favour, and we hope our members receive some of their
compensation as soon as possible in these difficult economic times.

“However, it has taken almost 12 months to get to this stage and although
the Secretary of State will honour guaranteed amounts from the awards, the
compensation allowed by law is still inadequate as some of the monies awarded
may not be recoverable from the administrators. The law must be strengthened
to protect workers who find themselves sacked when a company goes bust.”

Unite Regional Officer, Richard Clark, said: “A key issue is the long
debated problems surrounding the Construction Act, which is currently up for
reform. The government must ensure that changes genuinely bring about
security of payments, especially for small and medium sized businesses so
that main contractors cannot drive them to the wall. This is essential for
the protection of companies and the people who work for them, now more than
ever in the current economic climate.

“Moreover, Unite will not tolerate our members being dismissed with no
notice, consultation and adequate compensation. The outcome of this case
demonstrates that the union will take action where legal obligations to
employees are not adhered to.”

Notes to Editors:

1. Unite the Union’s craft members were employed under the JIB
(Joint Industry Board for the Electrical Contracting Industry) national
agreement for the electrical craft workforce, and the National Agreement
for the Heating, Ventilating, Air Conditioning, Piping and Domestic
Engineering Industry for the Mechanical craft workforce.

2. Unite members were represented by Rowley Ashworth Solicitors.

3. Last year, it was reported in the industry’s H&V News that Warners M&E
Ltd blamed payment delays from main contractors. It was also reported that
Warners M&E’s parent company Haymills Group Limited had taken the decision
not to support its subsidiary company. The April 2008 Report and Proposals by
the Joint Administrators PKF, reports disputed applications from Warners in
February 2008 for a balance of nearly GBP1.2 million regarding a large
contract for Haymills Contracting Ltd. Warners subsequently went into
administration.

4. Warners M&E Ltd were established over 160 years ago in 1845, with 90
employees including electrical and mechanical craftworkers and apprentices,
white collar, contracts managers, designers, accounts and administrative
staff, from their Hadleigh Road premises in Ipswich, Suffolk. The company’s
activities were electrical and mechanical building engineering services, an
AGA supply and servicing centre, and general servicing and maintenance. The
company was a wholly owned subsidiary of Haymills Group Ltd.

Source: Unite the Union

For further information contact Ashraf Choudhury in the Unite Press Office on +44(0)20-7420-8914 or +44(0)7980-224761.