Scrapped Newport steelworkers get £2m compensation

Hundreds of steelworkers thrown on the scrap heap when a Newport business went bust will share in nearly £2m of redundancy money.

A Cardiff employment tribunal has agreed workers at Alphasteel were unfairly dismissed and inadequately consulted about plans to close the firm at Christmas.

The firm sent about 400 staff home last year when the plant entered receivership.

It has since been sold and production is expected to restart shortly.

Workers will get up to £2,500 each in addition to other amounts they received after the business went bust.

The cash will be claimed from Alphasteel and, if it cannot pay, will come from a central fund.

Michael Leahy, general secretary of Community, the union that bought the case to the employment tribunal, praised the victory.

He said: “This is a great victory for Community members who were so badly treated by Alphasteel; at least now they will receive some compensation.”

Community regional director Jenny Smith said a bid from Libala Steel had been accepted for the former Alphasteel site.

She said: “Community union will be working with the official receivers, Welsh Assembly and the new buyer to secure a sustainable future and bring jobs back to Newport.”