AEI Cables owner comes under fire for not paying redundancy to staff losing their jobs

 The foreign owners of a cable factory on Tyneside (North East England) have come under fire for not paying redundancy packages to nearly 250 people who will be losing their jobs. Around 200 people are this week being made redundant at AEI Cables in Birtley , with another 40 set to go before the end of March.

The plant’s Dubai-based owners say it has been loss making for some time and have decided to close after being unable to find a buyer.

But the company has incensed workers by using a Company Voluntary Arrangement (CVA), a legal process which allows companies with debt problems to avoid paying redundancies when getting rid of staff.

Workers will instead have to apply to a public fund for redundancy payments, with the bill being picked up by the taxpayer.

Ducab bought AEI in 2014 when its previous owners went out of business following a long legal battle with staff over the non-payment of redundancies dating back to 2011.

chroniclelive.co.uk