MORE than 200 employees who lost their jobs when Bolton's last yarn manufacturer closed have been awarded thousands of pounds in compensation.

Shiloh Spinners, based at Swan Lane Mill, Higher Mill Lane, was once one of the two largest spinning mills in the world, but it went into administration in October 2001 with the loss of 204 jobs.

Fifty-four workers were made redundant in June 2001 and the remaining 154 lost their jobs six months later when the textile firm was placed in the hands of the receiver.

Union leaders from GMB and Amicus claimed the workers were not properly consulted about the redundancies and took their case to an employment tribunal in Manchester. At a hearing on Thursday, the employees were awarded 12 weeks pay in compensation.

Ferguson Doyle, from Whittles Solicitors in Manchester, who represented the unions, said: "If you are going to make mass redundancies, you need to consult the staff fully to try to alleviate the situation. This was a victory for the GMB and Amicus. It demonstrates the unions and their lawyers were prepared to fight this case."

Ron Steedman, from the GMB, said: "We are delighted. The firm showed a complete disregard for the legislation. We were only given 30 days pay, but the court awarded 90 days. I am trying to trace all the employees who were made redundant in June 2001 to let them know about the payouts."

The money will be paid by the Department of Trade and Industry, which means the employees will only receive eight of the 12 weeks and the weekly amount will be capped at £250.

Former employees can call Mr Steedman for 0161 485 8111 for more information.

Company bosses claimed the decline of Shiloh was caused by cheap imports and the strength of the pound. The company had a turnover of £13 million last year.