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Stobart Air Workers Facing Delays In Receiving Wages

Published on Jun 29 2021 5:12 PM in General Industry tagged: Stobart Air / Air Travel / Esken

Stobart Air Workers Facing Delays In Receiving Wages

According to The Irish Times, Stobart Air workers are facing delays in receiving wages promised to them when the airline folded.

Elsewhere, staff who transferred to its Belfast base last year are concerned over their redundancy payments.

Airline Collapse

Stobart Air ceased trading two weeks ago after its owner Esken, ceased financial support to the Irish airline.

A potential buyer for the airline failed to raise the cash needed for the purchase, triggering the collapse of the group's funding.

In the aftermath of the closure, Esken promised to pay the 480 workers of Stobart Air wages due to them up to the date when liquidators were appointed, which occurred on June 14th.

However, the liquidators told workers last week that the company payroll staff needed more time to update records, which will lead to a delay in payment.

Issues have arisen with Stobart's UK and Isle of Man subsidiaries, which have ceased trading but have not entered liquidation, creating technical issues for payroll staff.

Stobart Air Redundancy Payments

At the same time, Stobart Air employees who moved to its Belfast base last year have expressed their concerns regarding redundancy payments.

As they transferred to the UK subsidiary, they are governed by different laws with regards to what workers are entitled to.

Workers who transferred to the Belfast base believe they may not have enough service with the UK group to qualify for statutory redundancy payments under British law, despite having worked for the company for a number of years, albeit in a different country.

The delay in receiving wages and redundancy payments have left workers falling behind on home payments and bills.

According to one worker, "Our mortgage was due to come out of that money, I have phone bills and an ESB bill."

© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.

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