Ex-Workers Receive £1m Payout After Stewart Milne Collapse

Workers Receive Compensation After Stewart Milne Group Collapse

Over 200 workers who lost their jobs when the Stewart Milne Group went into administration last year have received compensation totaling approximately £1 million. Each worker was awarded around £5,000, providing a much-needed financial boost after more than 18 months of uncertainty.

James Brander, a 66-year-old former employee from Macduff, Aberdeenshire, shared his relief at finally receiving the compensation. He worked as a painter and decorator for the company for 42 years. Brander expressed gratitude for the payment, even though it came more than a year after he was made redundant.

The Stewart Milne Group, founded in 1975 by businessman and former Aberdeen FC chairman Stewart Milne, had been a major player in the construction industry in the North East of Scotland. Milne, who started as an electrician, built a successful business over the years. He had delayed his retirement in an attempt to save the company, but despite his efforts, the firm collapsed, leaving hundreds without jobs.

Brander described the moment he learned of the redundancy as shocking. “There were rumors that things weren’t good,” he said. “On Monday, January 8, we got a message saying we had to be in the office. We were told we were being made redundant, get your belongings, that was it.”

He admitted feeling sad about losing a job he loved. “I enjoyed my work. I loved working for Stewart Milne, the people were great. I was grateful it didn’t happen before Christmas because we got our holiday pay.”

Now retired, Brander has received his compensation check and feels relieved. “It’s money you’re due, but it’s appreciated. Fortunately, it happened.” Others, he said, were “over the moon” to have money in the bank.

Paul Kissen, an employment lawyer at Thompsons Solicitors, who represented the former employees, emphasized the challenges the workers faced. “These workers were all dismissed without any consultation or warning,” he said. “After a very hard-fought battle over the past 18 months, they have finally received about £1 million total, which is roughly £5,000 each, and they are delighted.”

Kissen explained that the claim was a protective award, a type of group claim involving 20 or more employees who were made redundant without consultation. When a company goes into administration, the money comes from the national insurance fund via the redundancy payment service. This is the same source from which other redundancy payments are made.

Steven Dillon of Unite the Union welcomed the compensation but noted that the workers deserved more. “It’s good they are getting what’s due to them, unfortunately, they should have gotten a lot more.”

Stewart Milne, the founder of the company, did not comment on the situation. The collapse of the Stewart Milne Group left a significant impact on the local community, with many families affected by the sudden loss of jobs. Efforts have been made to support these workers, including meetings to help them navigate the process of claiming their compensation.

The story of the Stewart Milne Group highlights both the rise and fall of a once-dominant construction company. Its collapse serves as a reminder of the challenges faced by workers during times of economic instability. For those affected, the recent compensation marks a small victory after a long and difficult period.