Workers who lost their jobs at Stoneywood Mill last month have been sent letters rejecting their redundancy claims “in error”.
The Arjowiggins-owned plant in Aberdeen was closed on September 22 after the owners went into administration.
Workers were only given 90 minutes’ notice of the devastating news, with many having decades of service at the mill.
Blair Nimmo and Alistair McAlinden from Interpath Advisory were appointed joint administrators to 10 Arjowiggins Group UK subsidiaries that day.
It is understood on Thursday, the former mill employees received letters from the Redundancy Payments Service (RPS) stating their redundancy claims had been rejected.
One former Stoneywood worker, who worked at the mill for more than 30 years, said: “It’s a disgrace. We’ve already been dragged through the gutter and then there’s another thing on top of it.
“It’s bad enough that everyone has been made unemployed by just being thrown in a room and a boy saying we’ve been made redundant.
“This is another kick in the teeth for us. It’s a shambles, everyone is going mad about it.”
Letter ‘issued in error’
After being made aware of the letters, the joint administrators said they had been sent out by mistake and an investigation will be carried out to establish what went wrong.
A spokeswoman for Interpath Advisory said: “Over the course of the afternoon of October 19, the joint administrators became aware that redundant employees received a letter from the RPS advising that their claims have been rejected. This will be distressing news for the redundant employees.
“The joint administrators consider that the RPS letter has been issued in error, as it does not reflect their interactions with RPS. The joint administrators remain focused on supporting all impacted employees.”
Interpath Advisory has been working with the RPS since the outset of the administration, alongside the external employee support partner, Evolve IS.
They say they have been providing RPS with all the information needed to “accelerate” the review process for employee claims and, in turn, pay out the claims.
‘Urgently investigating’
To ensure redundant employees from Stoneywood Mill that their redundancy pay would be issued, the joint administrators sent the following statement to former Stoneywood workers.
It read: “The joint administrators are aware that The Insolvency Service (TIS) may have issued a letter to you advising that they are unable to verify your employment details with the Insolvency Practitioner.
“Please note that this letter should not have been issued by TIS, and we are urgently investigating why this has happened. Evolve are in the process of finalising information required for employee claims to be paid. You do not need to contact Evolve or TIS regarding this.”
The RPS has confirmed all claims will be re-instated despite the rejection letters being sent out.
The RPS is part of the UK Government’s Insolvency Service which pays out the claims of redundant employees in all formal insolvency situations.
A spokeswoman said: “As part of its fraud prevention process, the Redundancy Payments Service requires insolvency practitioners to validate details about employees’ claims within 28 days of this information being requested.
“Where validation is not received in time, claimants will receive an automated rejection, however claims will of course be re-instated once the relevant information is received.”
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