Why Are we Waiting?

Towers: £16 million promise to ex-MG Rover staff

Up to 6,5000 ex-employees of the collapsed Birmingham car giant MG Rover are waiting for their share of £16 million promised to former workers by the owners, Phoenix Venture Holdings over three years ago.

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Workers were promised hardship payments of between £2,000 and £5,000 through a fund set up to compensate them after being made redundant. But the trust fund originally approved by MG Rover chairman John Towers and the other members of 'the Phoenix Four' has been put on hold whilst a Government inquiry into the collapse of the Longbridge car factory continues at enormous additional cost to the tax payer.

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Professor Carl Chinn, one of the trustees of the worker's Trust Fund went on national radio yesterday to express anger and disappointment at the long delay on behalf of West Midlands former MG Rover staff.

Carl Chinn said “I have repeatedly asked the directors of PVH, and they have not replied to me, on what basis their legal advisers have stated that they should not pay any money over to us. A lot of former MG Rover workers could do with this money. Many have only got low paid or temporary jobs - this money should be shared out fairly and squarely to all former workers. But nobody is telling us anything, and it is a most frustrating position. We have not had a trust meeting for a long, long time because there is nothing to discuss. Promises have been made and we have not been able to fulfil those promises.”