£1.2 million pay-out for hundreds of former Aberdeen paper mill workers

Stoneywood Mill went into administration in September 2022 and employees have been fighting to get compensation.

By Ross Hempseed

January 11 2024, 5:12 pm

The paper mill went into administration in September last year. Image: Kath Flannery/DC Thomson.

Hundreds of Stoneywood Mill workers will receive a share of £1.2 million in compensation after bosses failed to carry out a proper consultation.

An employment tribunal has ruled in favour of 300 mill workers and protective award claims made on behalf of all former employees based in Aberdeen.

Stoneywood Mill, which operated for more than 250 years, went into administration in September 2022 and dismissed many employees with immediate effect.

However, advocates for the employees argued they were not consulted properly which has prompted a lengthy legal battle.

Last week, 75 former employees represented by Unite the Union were awarded compensation.

Stoneywood Mill, where hundreds were made redundant. Image: Kath Flannery/DC Thomson.

£4,000 compensation for 300 workers

Now, an employment judge awarded the remaining 225 mill workers compensation totalling £1.2 million, averaging around £4,000 each.

The pandemic and the cost-of-living crisis were blamed for the mill going bust.

However Unite argued that at the time, staff were not properly consulted on redundancy by Arjowiggins Scotland Ltd – the company which owned the paper mill.

Furthermore, they did not enact a 45-day consultation period for workers in a redundancy situation.

Calum Mackay, a former employee and union convener at the mill, said it was “a great relief” and that the judgement had been “a long time coming”.

Unite general secretary Sharon Graham said “justice and financial compensation” had been finally secured for the mill workers.