Redhall reaches Vivergo staff deal

SPECIALIST engineering group Redhall has reached an agreement with employees working on a major contract for Vivergo Fuels which was cut short last month.

Redhall Engineering Solutions was working on Vivergo’s bioethanol plant at Saltend, near Hull, but its contract was cancelled amid claims it had fallen behind on its work.

Vivergo claimed the 400 workers involved were Redhall’s responsibility but the engineering firm insisted they had been transferred to Vivergo.

Redhall has now reached an agreement with the staff that will cost the company £1.2m but said this morning it has not admitted liability and it remains convinced that the workers contracts should automatically transfer to Vivergo or a new contractor.

Wakefield-based Redhall is also continuing its claim against Vivergo for £14m of losses it claims to have suffered as a result of the ending of the contract.

Redhall said the cost of the settlement had been included in its previous statements on its working capital and the deal would remove the threat of future claims from its former employees.