Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner. Facebook Messenger An icon of the facebook messenger app logo. Facebook An icon of a facebook f logo. Facebook Messenger An icon of the Twitter app logo. LinkedIn An icon of the LinkedIn logo. WhatsApp Messenger An icon of the Whatsapp messenger app logo. Email An icon of an mail envelope. Copy link A decentered black square over a white square.

Workers sacked by Dundee textile company win employment tribunal

Dozens of workers have received the maximum award by a tribunal.

The Bonar Yarns premises in Dundee. Image: Google Maps.
The Bonar Yarns premises in Dundee. Image: Google Maps.

Dozens of workers who were dismissed as a Dundee textiles company collapsed have won an employment tribunal.

Bonar Yarns, which specialised in yarns used for carpet backing, went into administration in April last year.

The business, which operated from Caldrum Works in St Salvador Street, was then rescued by one of its customers.

American John Newman formed a new company called Newman Bonar, acquiring Bonar Yarns’ assets, including its workers who were transferred under TUPE.

However, just two months later, the company was on the brink of closing again due to unsustainable energy costs in the region of £300,000 a month.

Again, it found a way to continue trading after negotiating better terms with its energy supplier.

But in October, it was confirmed liquidators were appointed for Newman Bonar.

Employment tribunal

The lack of consultation with workers before they were dismissed was at the centre of an employment tribunal.

Unite the Union and more than 40 employees were claimants in the case, which was held in May.

A newly published judgement found almost the entire workforce were sacked without warning on October 25.

It states: “Employees present in the workplace were informed that the respondent would be entering liquidation.

An employee at one of the Newman Bonar yarns.

“With the exception of two or three employees, the entire workforce (around 60 employees) were advised that they were dismissed by reason of redundancy with immediate effect.

“This was confirmed by letter dated October 30 2023. The remaining two or three employees, who were retained for the purposes of winding up the business, were dismissed around two months thereafter.”

The tribunal found that Newman Bonar did not undertake any consultation with the trade union of its employees before the dismissals. This is required when more than 20 redundancies take place.

“No elections were arranged and no prior information was provided,” it states.

Newman Bonar was not represented at the virtual hearing.

Employment judge Michelle Sutherland said she had “no reason to doubt the credibility or testimony” of witnesses.

What will workers receive?

The tribunal awarded workers a protective pay award of 90 days’ gross pay.

If a company is insolvent, the Insolvency Service pays the protective award, capped at eight weeks’ pay.

Interpath Ltd is in the process of winding up the business.

The judgement found: “Considering all the circumstances including the respondent’s total default, and in the absence of any mitigating circumstances, it is considered just and equitable to make an award for the full protected period of 90 days.”

The owner of Newman Bonar was asked to comment.

Dating from 1872, Caldrum Works was said to be the world’s first fully integrated, single-storey jute works.

It grew to become the second-largest jute mill in Britain in the 1920s, after Camperdown Works, also in Dundee.

Conversation