See also: LabourNet Friction Dynamex reports

Wednesday 20th August 2003

Sir Bill Morris, General Secretary of the Transport and General Workers’ Union has today written to Secretary of State Patricia Hewitt, calling on the Department for Trade and Industry to urgently investigate the financial situation surrounding the Friction Dynamex plant in Caernarfon, North Wales. 86 T&G members were sacked in June 2001 after eight weeks of lawful industrial action, due to a clause in the Employment Relations Act 1999 which only gives protection to workers for the first eight weeks of a dispute. The members won their case for unfair dismissal at an employment tribunal in November 2002.

In August 2003 the company was put into voluntary liquidation by its owner, Craig Smith. By doing this, the company will be able to evade all their payments to the unlawfully dismissed workers, and the taxpayer will instead foot part of the bill. To add insult to injury, it has emerged that the assets have been re-sold to a company believed to be owned by Craig Smith, the takeover company is apparently funded by Smith, and the “new” company is called “Dynamex Friction Limited” and run by a manager from the original plant.

Sir Bill said today:

“The T&G is demanding that the DTI launch an urgent investigation into the circumstances surrounding the administration of this company and the sale of its assets. We believe it is a tactical manoeuvre designed to avoid making the compensation payments to the 86 unfairly dismissed workers and to put the financial burden onto the taxpayers of this country. The “new” company name is an insult to the workers at Friction Dynamex.

“This is the unacceptable consequences of government legislative failure on employment. Our members were sacked for taking part in lawful industrial action and are now being cheated out of the compensation owed to them.

“A company should never again be able to avoid their responsibilities by exploiting the weaknesses of the law. It will be a shame on this Labour government if the lessons of this devastating dispute are not learned. ”

For further information please contact the T&G Press Office on 020 7611 2549

Notes to editors:

• For a copy of the letter from Sir Bill Morris to the Secretary of State for Trade and Industry please contact the T&G Press Office.
• For background on the dispute at Friction Dynamex please contact the T&G Press Office.