Sacked workers at a Norfolk double- glazing firm have been warned they are unlikely to get their full redundancy pay, although their pensions are thought to be safe.
Almost 400 workers at Bowater Home Improvements, which trades as Zenith Staybrite, were left stunned after being told the Norwich headquarters and factory, together with 30 sales offices, were closing with immediate effect.
The news was met with sadness and anger by the staff, many of whom had worked for the company for more than 20 years.
Bowater was placed into administration on Monday after its bank withdrew support following a collapse in orders.
Miles Hubbard, regional organiser of the T&G section of Unite, said: “Most people up there had years of service and had no idea what was happening.
“It was a bolt from the blue. There was anger and tears at what had happened. We will be fighting to get what we can in redundancy pay and other money the workers are owed. We are told the pension fund is unaffected but are still waiting for more information about that.”
David Thurgood of Grant Thornton, who was appointed administrator on Monday, said Bowater's debts meant it was unlikely workers would get the money to which they were entitled from the company and recommended workers apply to the government's Insolvency Service.
But Deborah Ives, an employment lawyer with Norwich law firm Birketts, said the collapse of the company meant workers were likely to be left out of pocket, as payments from the Insolvency Service would in most cases not match the pay to which workers were entitled.
Meanwhile, rival double-glazing firm Weatherseal, which bought the Zenith and Staybrite names plus the £9m order book, said it would be business as usual for customers who had placed orders with the company.
Customers are due to be contacted by Weatherseal which will carry out the installation work.
But other companies are offering to honour orders placed by customers with Zenith Staybrite.
Norwich-based Castle Windows is offering to carry out installations for Zenith Staybrite customers, even if they have paid a deposit, meaning households would only have to pay them the balance.
Anglian Windows, the UK's largest home-improvements company, is unaffected by the closure of Bowater and revealed that 2007 had been a record year for the company.
Melanie Russell, of the Anglian Group, said: “It is a great shame that Zenith has had to make this announcement, particularly with their roots here in Norwich.
“Anglian is fortunate to have an excellent heritage with over 40 years trading, and a brand which is trusted and respected by consumers.
“We are the market leaders in the industry with a reputation that has been built on quality products produced by quality people. In 2007 we have just posted an all-time sales record, thanks to the incredible efforts of our entire workforce. However, we are always looking and reviewing all aspects of our business in the light of a changing economic climate.”
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Showing posts with label Pay blow for workers at collapsed firm. Show all posts
Showing posts with label Pay blow for workers at collapsed firm. Show all posts
Thursday, 10 January 2008
Posted by Debtsgone LTD at Thursday, January 10, 2008 0 comments
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