Former workers at the old Astrazeneca site in Bristol , which collapsed less than two years after being sold off, will now receive full redundancy pay after the pharmaceutical giant bowed to pressure from MPs and workers’ union Unite .
Astrazeneca sold the Avonmouth site for £1 to pharmaceutical firm Avara Avalon in December 2016 and the 230-strong workforce were transferred as part of the deal.
At the time, the workforce received a 'guarantee' that if the company went into administration within three years their enhanced redundancy rights would be protected and paid by AstraZeneca if needed.
Avara collapsed into administration in February this year but AstraZeneca initially failed to guarantee it would pay its former employees the enhanced redundancy payments, which amounted to £12million.
However, in a u-turn move today (Wednesday, July 17), AstraZeneca has confirmed that the company will pay out.
The cash will be placed into an independent fund and will be separate from other creditors.
A spokesperson for Astrazeneca said: “We have decided to set aside funding of up to £12million, to be administered independently, to make sure our former employees at the Avlon site receive full severance should the ongoing administration of the site not generate enough funds to cover redundancy costs.
“AstraZeneca remained closely involved in helping secure a future for the Avlon site following the sale to Avara, which was made in good faith in 2016.
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“We have been engaged with the receivers since the company fell into administration. Last week, the deadline for bids for the site was reached and, since then, it has become apparent that there may not be sufficient funds to meet the redundancy costs of our former employees.
“Our success relies on the commitment and talent of our employees and our many partners in the 海角视频 and around the world who share our passion for science and for making a difference to the lives of patients.”
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A former employee told Business Live : “In one of the biggest handbrake u-turns any of us have seen for a long while Astrazeneca have issued [the funding] through the administrators.”
Jack Lopresti, MP for Filton and Bradley Stoke, welcomed the news, saying his experience of Astrazeneca is that “they are a responsible employer ”.
He added: "I welcome Astrazeneca stepping up to honour the commitments made to their former employees at the Avlon site. This has been an uncertain time for those employees… and it is good that they have offered stability and made this right."
Darren Jones, MP for Bristol North West, had also been calling for Astrazeneca to make the pay out. He said: “I’m delighted that after months of hard work from workers and unions, and my interventions with AstraZeneca and the government, that workers are being paid the redundancy packages they deserve.
“It shouldn’t have taken this amount of intervention, but I thank Astrazeneca for listening, responding and making the right call.”
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Unite says it is still seeking clarification on certain aspects of pension provision commitments which are linked to the redundancy commitment.
Unite regional secretary Steve Preddy added: “Unite is pleased that AstraZeneca has delivered on its commitment to its former workforce, many of whom worked for the company for most of their working lives.
“In a grim situation where workers are losing their jobs through no fault of their own, they now have the comfort that they will be paid the correct redundancy payments.”