A report released to news outlets in Britain by British trade union Unite says that the union is drafting a lawsuit on behalf of the Monarch employees who lost their jobs when the firm was declared bankrupt. According to the report by the Union, close to 1,800 workers have been affected by the process. This means that the employees are redundant. The firm sank to administration on Monday and attributed its trouble to the weakening of the pound, competition from established airlines and rising insurgency and terrorist attacks in its key markets. 90 percent of the company’s workforce is currently without a job. As a result, the union through its lawyers say that they are seeking a legal remedy in the form of employment tribunal proceeding. On its part, the organization feels that the company failed in consulting the employees about the redundancy issues. At the same time, the union and its lawyers say that the employees had not been served with the necessary legal notice. Also, most of these employees have not received the statutory pay. The union later released a statement where it said that it was doing all it can to assist former employs to acquire new jobs.
Its national officer Oliver Richardson said that they were also offering free legal advice to the affected workers. Also, they were involved with a number of employees as they try to seek compensation that was due. Experts say that there is a claim in regards to the way that the airline went into administration. This is further strengthened by the inactivity of the British government. Entering administration means that the company ceased to operate. This case is similar to another one in Germany where the government had to bail in and rescue Air Berlin. The Germany Company fell into administration and opened an opportunity for the company to find new investors. However, before the British Monarch collapsed, it has been revealed by the British Department of Transport that it did not ask for a bailout. The spokesman for the department said that the company went into administration talks directly. A spokeswoman for the company said that the company was in the process of selling most of its major assets. This includes equipment and its plant, prepaid fuel and even slots that the airline had in airports. At the same time, the Civil Aviation Authority said that it had sorted a quarter of the 110,000 customers affected by flight cancellations.