Woolworths and Farepak Compensation Delays

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Woolworths Employees and Farepak Customers Still Waiting for Compensation [23rd Jan 2012]

Staff of the now closed-down retail store Woolworths are to receive a share of £67.8 million in compensation after it was found that members of the Usdaw union were not consulted in the correct way when they were made redundant. An employment tribunal made the ruling this week and any compensation due will only be paid to those staff who worked in stores with more than 20 employees. This means that 3,000 ex-staff will miss out. It is thought that those staff who do receive compensation will receive around £2,800 each or 60 days pay at £330 per week. This is the maximum which can be awarded under these circumstances. John Gorle the national officer for Usdaw has said that this payout demonstrates how important it is to be part of a union. He goes on to say that the fact that some people will not receive a payout is wrong. He believes that the entire redundancy process should constitute a collective redundancy.

It has emerged this week that 200 people have died while waiting for compensation from Farepak. The Christmas hamper firm went into administration in 2006, leaving 122,000 people out of pocket. The average amount lost by the customers was £400 and many of those were on low incomes. The liquidators BDO Stoy Hayward have commented that any dividends which are to be paid will be given to the next of kin of those who have died. They have agreed that it is unacceptable that this has taken so long and that the liquidation process is too long. Part of the problem is that the industry is self regulated and there was no complaints procedure. The Farepak Victims Committee have asked the government to intervene and have started a petition. However the government has said that it cannot interfere in a liquidation process.

A couple who were on their first holiday together are to receive several thousands of pounds in compensation after they fell ill from food poisoning while in Turkey. Richard Pickles and James Fairbrother paid £800 for the trip in 2008, but became ill within days with salmonella. Mr Fairbrother still suffers with stomach cramps and diarrhoea and has been diagnosed with irritable bowel due to the infection. The couple stayed at a three star hotel in Turkey which was booked through Thomas Cook. Other guests at the hotel are also in the process of claiming compensation. Thomas Cook have commented that they agree it is disappointing to fall ill while on holiday and that they have settled the matter with the couple.

Police chiefs have said that some of the shops which were looted during the riots last summer may not receive compensation as they were not targeted by enough people. The Riot Damages Act has a strict legal definition of a riot that there must be 12 or more people together who are threatening violence for a common purpose. It is this definition which is being used work out which stores are eligible. Some stores have found that their insurers did not cover the damage done to their stores and now they will be unable to claim damages under the act. Labour MP Frank Dobson has pointed out that it looked like a riot and sounded like a riot. He is claiming that the government is trying to get out of paying compensation even after they gave the impression that everyone would be able to make a claim. The government are saying it is up to the police to deal with claimants.

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