Hundreds of workers who lost their jobs in the collapse of a North Wales bus firm have been awarded compensation.
A judge ruled that GHA Coaches failed to consult properly with its employees before they were made redundant last July – many of the 320-strong workforce were told of the firm’s demise via a text message.
The tribunal awarded 90 days’ pay to 183 staff who made a joint compensation claim – it will be paid out by the Department of Business Innovation and Skill, while GHA was ordered to pay the costs of the hearing.
320 jobs were lost in the collapse of the Ruabon-based firm, which had faced a winding up order over unpaid taxes. GHA’s directors Gareth and Arwyn Lloyd Davies were banned indefinitely from running any bus companies.
The closure also led to the loss of some public and school bus routes across Denbighshire, Flintshire and Wrexham. A Denbighshire County Council report later revealed that the local authority had concerns about the running of the firm four months before it closed.
Liz Cotton, head of employment for lawyers JMW said: ”We are pleased that the judge felt GHA should have done more to consult with their employees when they knew the company was in trouble. The damages will hopefully help the ex-employees be able to move on after losing their jobs with no warning at all.”
Source: Daily Post