Former Torith workers win compensation claims at tribunal
Dozens of former employees of a failed north-east construction firm have been awarded compensation by a tribunal in Dundee.
The Courier reporting the collapse on December 18, 2009.
- By Graham Huband
- Published in the Courier : 22.09.10
- Published online : 22.09.10 @ 11.59am
Three separate actions relating to the collapse of Drumoig firm Torith in December were raised with the employment tribunal service earlier this year and the judgments were released simultaneously on Tuesday.
The largest case involved 61 claimants, headed by Robert Barraclough of Arbroath.
The tribunal panel found that the respondents — who were absent from each of the tribunals and whose address was given as being care of joint administrators Ernst and Young LLP — had failed to comply with the requirements of the Trade Union and Labour Relations Consolidation Act of 1992.
The panel heard employees had not been consulted over the company's difficult trading position before redundancies were made on December 14, despite management concerns over the future.
Indeed, the company's contract director — a Mr Lindsay — drafted a letter on or around November 20 explaining to staff that it was "with regret that I have to inform you that the company may be forced to reduce its current workforce to match the workload we have at present and what we feel we will be able to secure in the forthcoming months."
The letter was never distributed to employees.
In the Barraclough case, the tribunal ordered that a protective award be made to each of the applicants in respect of lost earnings between December 14, 2009, and March 14, 2010.
Similar findings were made in respect of a case involving four staff members which was raised by a Mr B. Wilmot of Dundee, and in a claim by the UCATT union in respect of all of its union members employed by the business.
Torith was formed in Dundee in 1975 by local businessmen Douglas Smith and Alan Torbet. The firm won many major contracts in both the private and public sector, including the construction of new schools, water services, offices and housing.
At its peak the company employed over 200 staff but that had dwindled to around 110 by the time the firm collapsed last year.
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