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GMB Scotland fights for workers abandoned by famous bakery

Wednesday, May 24, 2023

GMB Scotland fights for redundancy pay for workers sacked by famous bakery

GMB Scotland is fighting for redundancy pay for workers laid off when a famous bakery went under after their claims were refused.

All 230 staff at Mortons Rolls were told they were losing their jobs when the Glasgow company collapsed in March but the Redundancy Payment Service (RPS) has now ruled the firm was still solvent when taken over.

It said the jobs were transferred to new owners, Phoenix Volt, before the firm collapsed. Under TUPE employment regulations, transferred staff must retain the same terms, conditions and rights.

GMB Scotland is now taking legal advice as the union fights for redundancy pay and is writing to city politicians urging them to support the sacked workers.

Anyone who works for a company for more than two years is due redundancy pay depending on length of service but the government agency said Phoenix Volt should be making the payments. Around half the workforce returned to work 15 days after Mortons went under but on new terms and conditions.

In letters to the workers laid off, the Redundancy Payment Service said their jobs were not made redundant but previously transferred to Phoenix Volt when both firms were solvent. It said the new owners were responsible for paying workers money owed them.

GMB Scotland organiser David Hume said:

“When Mortons Rolls collapsed, the workforce was told they were being redundant, the firm was going under and their jobs were lost. There was no suggestion their jobs had been transferred to new owners.

“More than 100 of those workers were not asked to return when the factory resumed production. They were made redundant and deserve redundancy pay.

“We are now urgently seeking legal advice on exactly what happened at Mortons Rolls, including issues around TUPE, unfair dismissal and redundancy pay. This is not about if these workers are due payment, it is about who pays it. Someone is liable and they will be held liable.

“These workers were treated badly then and are being treated appallingly now. We hope the politicians who welcomed the rescue of Mortons Rolls are equally supportive of the workers laid off but now left fighting for redundancy pay.”


Contact: GMB Scotland Communications on 07738486317 or email: