PAPERMAKERS Garnett's has defended a decision to offer workers £500 bonuses - weeks after claiming it couldn't make immediate redundancy payments due to cash flow problems.

Twenty-two employees lost their jobs last month, some of who were told they would have to wait up until six months before receiving all their redundancy pay.

Garnett's was quick to point out that the former workers would all eventually get their money, and that no-one would receive less per month than they would have while working.

But a group of former workers called upon the trade union Amicus to investigate what was happening.

Now someone still employed at the firm's Otley works base, who has asked to remain anonymous, has shown the Wharfedale & Airedale Observer an internal memo offering £500 order-related and other bonuses.

The worker claimed that, given what had just happened to their colleagues, that was unacceptable.

They said: "In this memo, some staff are offered £500 pay-outs to make paper before November 17 and an additional bonus of £20 per tonne when the task is complete.

"I am disgusted that a company which cannot afford redundancy payments due to cash flow problems can suddenly offer thousands of pounds to (encourage) staff to work every day they can."

The employee goes on to claim that no vote ever took place (as required) to form the staff committee which consulted with Garnett's over the job losses.

The company's Managing Director Cliff Barry, however, says that simply isn't true and insists the firm is acting in a perfectly proper manner.

He said: "The fact of the matter is that we're not doing anything wrong, we've followed the process religiously and run it by two sources of legal advice to the company.

"We've got customers to serve and have to produce a specific range of orders to maintain the long-term viability of our business.

"People who are involved in that process have made an enormous personal sacrifice to ensure the company will meet those orders. We believe we've done the right thing to reward them - some of them are working in the order of 60 hours a week.

"And we're matching the cash flow of the business with the way we're paying the redundancy payments, and have had no adverse comments from the unions or the lawyers. No-one is any worse off. In fact, because of the way it's being paid some people are being paid more in a month than they might have actually earned.

"It's disappointing an employee's taken the view that they have. If anyone's got an issue we have a procedure where they can come and see me and say what they want to say."

Turning to the staff committee claims, he said: "The committee was elected by the people, the people who were put forward put themselves forward.

"We were given a list of names and those were put back to the employees and the workforce either says yes or no.

"But as usually happens, we got a very small number of people who replied and a large number who didn't bother, there was no strong response from the workforce.

"So everyone whose name had been put forward went on the committee."

Garnett's announced in the summer that redundancies would follow from its decision to transfer paper-making production overseas due to an increase in water fees.

The company says it is determined to relocate to another Wharfedale site where it could concentrate on the finishing side of the paper business.