Payout of £400k to staff who lost jobs

More than 150 former workers of failed parcel delivery firm Amtrak will share an estimated £400,000 in compensation over the way their redundancies were handled.

When the Aldridge company went into administration on August 22 last year, no notice was given to the 230 employees, Birmingham Employment Tribunal heard. Under the Trade Union and Labour Relations Act 1992, any company with more than 100 employees should hold a 90-day consultation period because of the scale of the redundancy programme.

Giving evidence yesterday, the GMB union's Mohammed Khalik, representing about 100 workers, said: "As the respondent failed to take any steps to consult the GMB about the redundancies I would ask the tribunal to make a protective award in favour of all GMB members at the date of the redundancy."

More than 153 axed staff, some not represented by unions, had submitted claims against Amtrak on grounds there was inadequate consultation.

Representing himself, van driver Robert Merrick, aged 33, of Well Lane, Blakenall, Walsall, told the panel: "Any information was given by hearsay. There was no staff council, no memos sent to us and no formal method of communicating with the staff.

"When I arrived at work on August 26, 2008, I was told by the administrator the business had closed. We were being made redundant and should go home. There was no consultation.

No one from Amtrak, based in Northgate Way and operated by Netfold Ltd, attended the hearing.

Tribunal chairman Fiona Monk said: "We have come to a unanimous judgment that the respondent failed to comply with regulations."