Employees that were made redundant by Star Global Trading have recieved some good news.
Star Global Trading, is perfume distribution company based on Salford from Dallas Court. On Monday 22 February administrators appeared on site and removed staff from the premises.
TUC (Trade Union Centre) has agreed to represent affected employees during legal proceedings to recover funds owed, from wages, to holiday pay and the 90-day redundancy pay which the law states you must recieve.
They will be supported by Unite The Union who represented the employees of ‘The Accident Group’ where they managed to recover over £8m for the 2,500 affected employees.
They are being supported by local man Dean Watson of Begbies Traynor.
Dean Watson is a partner at Begbies Traynor and is a local Restructuring and Insolvency Specialist, Begbies Traynor also supported employees of The Accident Group.
Star Global Trading is in receivership, which means administrators have been appointed and they are currently investigating wether it would be viable to keep the company open. If they decide it is and they find a buyer the staff could all get their jobs back, but that is nowhere near a definate.
The administrators must send out a letter of administration proposals to all employees with their findings within eight weeks.
Dean Watson said, “This is such bad news for the local Salford community with such heavy job losses. In terms of the Administration, the Administrators have only been appointed for a short period and will be working to find the best solution for all creditors. We will understand further the strategy of the Administrators and the reasons for the collapse of the company one they have issued their initial report and proposals. The proposals should be issued within 8 weeks of their appointment.”
It is believed the administrators have been appointed for over seven months with backroom talks being held to try and prevent this from happening.
In February 2013 three directors left the company each taking £5.2m for pay off’s.
The highest paid director was paid £4.2m as standard.
There is belief by certain individuals that Star Global Trading have not been paying tax and national insurance despite taking it out of employees wages.
They haven’t filed any accounts information for two years which in itself is illegal.
Unite The Nation have put in a written request for proof that the national insurance and tax was actually paid.
They are still awaiting a response.
Approximately 12 months ago the directors of the company started selling their high perfomance sports cars, so this was a clue to some staff members that something was amiss.
Staff members left and weren’t replaced and the general view of employees all round was that company had deterioated.
It used to hve good staff benefits widely recognised staff discounts amongst other things it used to have a ‘family feel’ to it said one ex-employee.
Since the 104 staff have been made redundant, some were kept on. Workers that were kept on have tried to leave the company however they have been told by directors that if they leave they will get nothing.
Star Global Trading distributed perfumes
The staff that were kept were taken to one side on the day that employees were told they were being sacked and locked in the canteen whilst other staff members were being ‘marched’ off the premises by security hired by the administrators.
Staff feel very upset they were given no chance to say goodbye to friends and colleagues. Some said they felt like they were treated like animals or children.
One employee a 33-year-old warehouse worker said, “He should have been honest with us in the past year. He fired a lot of good people on that last day, people that cared about the business, the job, people that trusted him and believed in the company.”
During the Unite The Union meeting on Wednesday 24 February one concerned employee asked what ‘would happen with our pensions if they haven’t been paying our tax and national insurance?’
They were told it wouldn’t affect them as they can prove it has been being taken out of their wages.
Alec from Unite The Union said, “We expect to recover you all a four figure sum each if you are entitled to it”.
Not all employees were part of the union and this is important for if these events happen.
The union has agreed that for the people that weren’t already members, they can have special membership for 50p and they will represent all their legal cases.
A tribunal fee alone before the case is heard is £250 and the fee for the hearing is £900.
With this the union will pay for everything so this appears to be a good deal.
Alec said we are working very closely with your local MP Rebecca Long-Bailey, and this case will be heard in parliament.
SalfordOnline.com contacted a representative of Rebecca Long-Bailey for comment, we are still awaiting a response.
He went on to say, “We are the modern day Robin Hoods, we get the money from the rich and give it back to you”.
SalfordOnline.com put a few questions to Alec, he explained that workers contacted him for help, and that without a shadow of a doubt what the company has done is illegal.
A Facebook group has been set up for staff members affected ‘Star Global Trading ex employees’.
Another meeting is due to be held on Wednesday 2 March at 10.30am at Unite The Union office, Merchant Quay, Salford Quays. Affected staff members can call The Union for more details on 0161 789 2999.
The company is still trading and is still moving stock to a site in Ashton.
The current building is believed to have been sold by developers.
Main Image: Dallas Court, Google Street View
