An employment tribunal has ruled in favour of 10,000 former employees of failed UK high street retailer Wilko, following a legal victory by the GMB union.
9,000 ex-employees from larger stores, each with a workforce of at least 20 individuals, are entitled to £2m ($2.7m) compensation equivalent to four days’ wages.
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1,100 former staff members from distribution and support centres will receive remuneration for 13 days.
The ruling determined that Wilko did not engage in adequate consultation with its workforce before entering administration in 2023.
GMB represented the interests of thousands of its members who were affected by job losses when the discount retailer collapsed. Its successful legal challenge has led to this financial redress for the impacted workers.
GMB rep and former Wilko worker David Bartlett stated: “It has been a long, hard, slog getting this money – the very least Wilko workers deserve after the way they were treated.
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By GlobalData“In no way will this make up for the stress and anxiety they faced during those dark days in 2023.
“But GMB hopes it will give them a much-needed boost as they move on with their new lives and careers.”
In August 2023, the retailer announced the closure of the majority of its stores as it failed to secure a buyer, putting 12,500 jobs and 400 stores at risk.
During negotiations, PricewaterhouseCoopers (PwC), acting as Wilko’s administrator, confirmed that saving the majority of the business was unlikely. However, M2 Capital proposed a £90m rescue bid, promising to keep all employee positions secure for two years.
GMB Union has now reached a settlement regarding the protective award for Band 1 employees made redundant during the administration process.
The consultation period required by law was 45 days for distribution centres and support centres, and 30 days for larger stores.
The settlement reflects the discrepancy between the required consultation duration and what was provided by Wilko. This is the reason for the difference in compensation for different groups of employees.
