Redundancy compensation of just £3 per person has been awarded to former employees of MG Rover, it has emerged.
The car manufacturer collapsed in 2005 following severe financial difficulties, which resulted in 6,500 job losses at the company's plants and factories across the country.
Ex-workers believed that a trust fund established prior to the firm's liquidation would provide them with combined compensation settlements of around £20 million, but, in actual fact, this budget only includes around £22,500 to share among the affected professionals.
Furthermore, a case heard at the High Court has ruled against the proposal that an additional £12.5 million be added to the fund as former parent organisation Phoenix Venture Holdings cannot access more details on the cash paid to creditor HBOS.
Carl Chinn, trustee of the ex-workers fund, commented: "I hope [HBOS] will search their conscience to see if they can find the goodwill to help those who have lost so much."
Contact our employment solicitors on 0800 916 9060 or email firstname.lastname@example.org if you would like advice on any employment matter
Posted by Chris Stevenson