Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The National (Scotland)
The National (Scotland)
National
Laura Pollock

Union threatens Stewart Milne Group with legal action following collapse

UNITE Union has threatened legal action against Stewart Milne Group in support of its members who were given "no notice" about their redundancy.

On Monday, more than 200 employees of the constructor were notified by a pre-recorded message that the company had entered administration.

Unite represents more than 60 tradespersons in various locations including Dundee, Edinburgh and Glasgow, as well as at the company's base in Aberdeen.

Unite general secretary, Sharon Graham, said: “The announcement that the Stewart Milne Group has been placed in administration is grim news. However, what is totally unacceptable is the workforce were given no prior warning nor has there been any consultation with Unite.

“Unite is now actively exploring all legal avenues in support of our members and it is fully determined to get them justice.”

Employees were told on the online conference call that they would not be paid for work done prior to Christmas as well as hours worked on Monday.

John Clark, Unite industrial officer, added: “The actions of the Stewart Milne Group regarding the lack of consultation with the workers is potentially illegal, and it is certainly no way to treat a loyal workforce. We are in the process of contacting all our members to progress protective award claims being lodged against the company.

“It’s vital that the Scottish Government and the local authorities in which the company has a presence work with Unite to explore how we can find suitable alternative employment for the workers including on public contracts as a priority.”

Unite also urged the Scottish Government and councils to “explore how the skilled workers can be found suitable alternative employment on public procurement contracts”.

On Tuesday, the Scottish Government issued a statement about the collapse of the group.

Responding to an urgent question from Tory MSP Douglas Lumsden asking what discussions the Scottish Government has had with the firm’s administrators, Wellbeing Economy Secretary Neil Gray said he had met with administrators that morning.

Gray went on: “I made clear to them that I want to see every possible support to be offered to affected staff, contractors, suppliers and homebuyers.

“People affected by this announcement are our immediate priority.”

The SNP MSP added that the Scottish Government was offering support through their Partnership Action for Continuing Employment (PACE) and that recruiters had “already” approached those affected by the redundancies.

First Minister Humza Yousaf previously called the news “concerning” and said that it was “undoubtedly a huge shock for the workers impacted”.

Seven companies under the Stewart Milne banner had been placed into administration.

These were: Stewart Milne Group Limited, Stewart Milne Homes North West England Limited, Stewart Milne Homes Central Scotland Limited, Stewart Milne Central Scotland (Developments) Limited, Stewart Milne (Arbroath) Limited, Stewart Milne Homes (Auchterarder) Limited, and Stewart Milne Homes (Kirkton) Limited.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.