Deal On UDM Handling Miners Compensation Should Be Suspended

Local MP Sandra Osborne has demanded the suspension of the government agreement that allows the Union of Democratic Mineworkers to handle compensation claims directly for sick miners pending a Police investigation into claims of misappropriation of funds. She has joined other MPs in making this call as it emerged that concerns had existed for some time over the pattern of compensation claims from the Nottinghamshire area where the UDM is based.

Sandra went on to say
“I have joined other Labour MPs in signing a Commons motion demanding an inquiry into Vendside, the UDM’s claims-handling company, and the suspension of the agreement allowing the union to process compensation claims. Vendside, which is being paid by the Government to handle compensation cases, is charging former miners an additional fee based on the amount they are paid by the Department of Trade and Industry in settling claims for diseases sustained while working in the coal industry.

Energy Minister Malcolm Wicks has already responded to our call saying he has not ruled out the option of suspending the operation of the UDM contract while the police inquiries continue. He has also asked Government officials and the claim handlers to assess what impact such action might have on the schedule for the payment of claims.

Here in Ayr Carrick and Cumnock over £32 million has already been paid to miners and their families in compensation. There is a case to look closely at the agreement with the Nottingham based UDM and to do whatever is necessary to ensure that miners’ widows and former miners and their families do not lose out in other parts of the country as a result of the way the UDM is operating.

Background Information

The Early Day Motion says
“That this House calls for the suspension of the Coal Health Agreements between the Department for Trade and Industry and the Union of Democratic Mineworkers and between the Department for Trade and Industry and Vendside”

The Government has paid £1.4 billion to former miners and their dependants who have suffered or died from emphysema and other respiratory illnesses. A further £1.2 billion has gone in compensation for vibration white finger, a disabling condition sustained by miners who used drills to loosen the coal.

The UDM was formed during the 1984 miners' strike by dissident members of the National Union of Mineworkers. Its members worked during the yearlong dispute, leaving a legacy of ill feeling. Vendside is based in UDM HQ in Nottingham and has among its directors Neil Greatrex, the UDM President.

Both the UDM and NUM are engaged in seeking compensation for their members, former members and families.