The Motorcycle Action Group has been told to pay three former employees more than £42,000 following their resignations.
M.A.G. (UK) Ltd of Oakslade Station Road, Hatton, near Warwick, was formed in 1973 to provide help and advice to motorcyclists in return for subscriptions.
James Tyson, who had been campaign co-ordinator, Nicholas Brown, former general secretary, and former employee Louisa Smith recently made legal claims for constructive unfair dismissal at Birmingham Employment Tribunal.
They said they had resigned from the firm – prompting their claims for constructive unfair dismissal - following allegations of bullying and intimidation. Smith also made legal claims for breach of contract and unpaid wages.
At the previous hearing, tribunal judge Mr David Kearsley found in favour of the former employees following a five-day hearing and said a decision about compensation would be announced later.
At the latest hearing, on Wednesday, May 7, Mr Kearsley said that Mr Tyson who had been paid £25,000 a year, was now involved in a new venture and that Miss Smith had also found work. Mr Kearsley described Mr Brown as having “a wealth of experience”.
Mr Kearsley said there had been a breach of trust and confidence and that the awards had been increased by 10 per cent because the firm had not handled the resignation process correctly.
After asking the claimants and the respondents to consider calculating the total award among themselves after giving them a brief outline, it was announced the total would be £42,500. Tyson’s award included £655 holiday pay and more than £1000 in expenses.
Neil Liversidge, who helps run M.A.G, said afterwards that the organisation was struggling financially despite having around 10,000 members and did not have the money to pay the awards.
“We have since formed a new organisation called the Motor Cycle Action Group Ltd at Hatton, in the same kind of business, with motorcycle members joining us from M.A.G,” said Mr Liversidge.