Labour Research June 2005

News

Rover unions push for extra redundancy pay

Unions representing workers made redundant from the MG Rover car group lodged tribunal applications last month aimed at getting extra redundancy pay.

Statutory redundancy terms applied, but the unions involved believe there is a case for further money to be paid in lieu of 90 days' notice.

Meanwhile speculation continued over the company's future, with administrators considering three "potentially viable" proposals for the MGTF sports car model and two for the rest of the business.

But the T&G general union was anxious not to raise members' hopes: "We said there was a one-in-a-million chance of getting manufacturing resumed at Longbridge and that remains the position".

By mid-May only 510 workers still had jobs with MG Rover or Powertrain while 4,902 (and 439 supply chain workers) signed on for benefits.

The Department for Work and Pensions said 800 workers had found training places but only 210 had been placed into work.

However, it said the situation was "very fluid" and thousands more vacancies were being offered by employers interested in recruiting the redundant workers.