James Cartlidge MP at Vanners Silk Factory in Sudbury, February 2020.
Tens of thousands of pounds in damages and back pay has been awarded to former staff at a beleaguered Sudbury silk business, after successful claims over non-payment of wages and unfair dismissal.
An employment tribunal has ruled that Vanners Silk made unauthorised deductions from the wages of 11 employees in 2021, following the firm’s acquisition by new ownership.
The judge also found that Vanners had failed to inform and consult the claimants on the transfer of their employment to three associated companies, which were involved in the acquisition.
In addition, the business was ordered to pay damages to five claimants for unfair dismissal, while eight were compensated for breach of contract over notice pay, and seven received unpaid holiday pay.
The claims were brought against Vanners director Roger Gawn, whose tenure as owner has been mired in controversy, since he bought the firm a month after it went into administration at the end of 2020.
The tribunal judgment, which followed a five-day hearing in London in April, included emails revealing the steady breakdown of the working relationship between Mr Gawn and senior management figures.
One email exchange showed an argument between Mr Gawn and former Vanners managing director Laura Gore – one of the claimants – over the company’s struggles and Mr Gawn’s treatment of staff.
Mr Gawn had expressed dissatisfaction with the performance of the management team, alleging they had not provided a satisfactory business plan or achieved the desired level of turnover.
He wrote in February 2021: “It staggers me that you have not yet had a reality check on the severity of the problems that I now know the business has.
“I did not create these and only recently have been made fully aware of them.”
But Mrs Gore said the director had failed to maintain essential supplies and services required to keep the business running – a position agreed by the judge in deciding her successful unfair dismissal claim.
She responded: “While it might suit your narrative to blame everyone else at Vanners for the current situation, the truth is all these issues have been caused by yourself.
“Due to you not paying staff, people have been contacting the local council as they are in severe financial hardship and need help with rent, food and utilities, so it’s very public knowledge in the local area of the situation you have created.”
The judge also dismissed Mr Gawn’s argument that he was entitled to withhold some of the claimants’ pay “because he was unhappy with their performance”, ruling that there was “no contractual mechanism to withhold pay on that basis”.
Following the tribunal verdict, South Suffolk MP James Cartlidge said he was pleased to see that it had “ruled substantively in favour of Vanners’ employees”.
He told Suffolk News: “I hope that the workers affected feel vindicated in taking the action that they did.
“I entirely appreciate that this has been a very stressful time and, of course, it’s never easy going to court.
“That said, I’m conscious that the current circumstances of what remains of the former Vanners companies means that there may be further hurdles to cross in gaining financial redress, and I will be trying to assist going forward where I am able.”
The overall future of the Vanners Silk site remains uncertain after being repossessed by administrators earlier this year.
Insolvency and restructuring firm Interpath Advisory took control of the Weavers Lane factory in February to market it to other potential buyers, because Mr Gawn, who held the buildings on a 12-month lease, had missed multiple deadlines to buy it.
The joint administrators subsequently confirmed in May that the premises had been sold to investment firm Ponders End Investments, which has made no further announcement about the site in the months since.
Published by the Suffolk Free Press.
