Liberty Steel: New fright for workers in Sheffield and Rotherham as wages delayed again
Sheffield steelmakers have had another fright after wages were delayed again - while pension payments are months behind.
Employees at Speciality Steel UK - part of Liberty Steel - received an email warning salaries would not be paid ‘first thing’ on Friday, January 24.
It is the second time wages have been late after a delay caused uproar in October.
Meanwhile, pension payments to Aviva have not been made since September.
The problems come as Liberty battles to stay afloat. The company employs hundreds at steelworks in Rotherham and Stocksbridge but many are on furlough due to a lack of orders. In November it faced a winding up petition from a supplier over debts.
One steelworker said: “An email has come out for the second time about late payment of wages. Pensions have still not been paid since the August payment went in…Yet they are still taking money out of employees’ wages and blaming Aviva for not accepting the money.”
An email from Carl Dermott, payroll manager, said the business was working closely with Barclays to pay wages before midday Friday.”
The money was later confirmed to have landed.
A second email, from Toker Ozcan, CEO for Liberty Steel UK, said Aviva could not accept payments following a change in bank account ‘whilst they carried out their due diligence’.
He said they hoped Aviva would start accepting payments in late February if the firm’s restructuring plan was approved.
In November, supplier Harsco Metals Group applied to the High Court of Justice to force Speciality Steel UK into liquidation so company assets could be sold to pay debts.
The hearing was adjourned until February, pending approval of a restructuring plan, which will be put to creditors at a crunch meeting on Thursday, January 30.
A Liberty Steel spokesperson said: “Speciality Steel UK’s restructuring plan will reorganise the debt so the business can continue to fulfil its commitments to critical customers in the defence, aerospace, energy, and infrastructure sectors.
“This approach is the best route to maintaining business stability and delivering the maximum possible value to creditors compared with other outcomes."
A spokesperson for the Community union said they “would not tolerate” further late payments to employees.
They added: “The company must now urgently rectify its arrangement with the pensions provider - workers in Rotherham and at other Liberty sites should not have to put up with this uncertainty any longer."