McCowan’s toffee workers win cash after firm collapses

Published on Saturday 18 February 2012 00:00

TRADE union USDAW has secured more than £200,000 compensation for some 100 former employees of iconic Scottish sweet manufacturer McCowan’s.

The business behind the toffee brand, New McCowan’s Ltd, went into administration in September and production at its factory in Stenhousemuir was immediately stopped.

Despite efforts by administrators at Grant Thornton to find a buyer for the company, which had been producing sweets since the 1920s, it remained closed.

The union subsequently made a claim on behalf of its members as it said McCowan’s had failed in its legal obligation to consult with the union before making its members redundant. An employment tribunal in Glasgow has now awarded the 103 former staff compensation of 60 days pay.

Alan McVie, USDAW area organiser, said: “It has become apparent that McCowan’s knew they were in financial difficulty some months before they finally collapsed into administration yet the union and workforce were kept totally in the dark.

“McCowan’s failure to consult with us and the workforce was quite unforgivable.”

McVie added that the majority of workers had not secured alternative employment. Last month, USDAW announced it had won £67.8 million compensation in similar circumstances for some 24,000 former employees of Woolworths made redundant when the firm collapsed at the end of 2008.

PERRY GOURLEY