Staff head to US to demand payoff

Viasystems brought in the receivers in September 2001

Staff from UK factories which closed down in 2001, are in the US in a bid to claim their redundancy pay.

Viasystems made 850 staff redundant in 2001 when it closed its Tyneside sites as it went into receivership.

The GMB union says the axed staff, from plants at North and South Tyneside, are owed payouts of an average of £27,000.

Three former workers have now travelled to Texas in the hope of meeting Thomas Hicks, chairman of Viasystems Group - parent company of the now defunct firm.

Texas showdown

The GMB added that most of the laid off staff had only received a "minimal" payment, based on the government's statutory redundancy package.

That equates to a maximum of £240 per year of service for up to 20 years.

The union added that the firm owes 150 longer standing employees a total payment of £4m.

GMB general secretary Kevin Curran said: "It is time for Thomas Hicks to take responsibility for these former employees and pay the debt owed to them."

Val Smith, one of the three staff who travelled to Texas had worked at Viasystems for 33 years, and said former employees were "still reeling" from the closure.

"Many counted on these good jobs to support them and their families, and invested in the company pensions scheme to support them in retirement," she said.

"After we were all let go, many colleagues had to go on benefits, sell their houses and give up their dreams."

Pension question

The GMB added that its members were "losing hope" of ever receiving any cash as they had been "put at the end of a very long list of creditors".

Tom Ross, senior GMB organiser, added:" Beyond their redundancy payment, the question of the company pension scheme is left unanswered as well."

Viasystems closed two factories - one in South Shields and another in Longbenton - in 2001.

In September that year the company announced it was calling in the receivers.

The electronics firm was later subject to a management buyout and its name changed to Circatex.