Redundancy packages will be paid to laid-off Cinram workers after a last minute deal was hammered out by the Unite union and bosses.
The union says that a 'good redundancy package' was agreed upon for workers at Cinram after 'intensive negotiations'.
The situation arose after Cinram lost its Universal Pictures contract to Sony DADC UK in Enfield in May.
The terms of the deal, which are confidential, mean that 29 workers will TUPE - Transfer of Undertakings (Protection of Employment) Regulations - transfer to Sony DADC.
The remaining 81 workers affected accepted the redundancy package that was negotiated by the union.
In a letter to workers telling previously Cinram had claimed that Sony was unlikely to accept any TUPE transfers - meaning that industrial tribunals may be necessary for staff to get any money at all.
Workers and the union were set to converge on the Enfield site on Monday to demand that they be allowed to start - after being officially laid off by Cinram today.
Unite regional officer Marie Hall said: “After detailed negotiations, we have been able to agree that 29 workers will be TUPE’d to Sony’s operation at Enfield. The remaining 81 affected have accepted a good redundancy package.
“The message that should go out is that belonging to a union is highly beneficial to workers.
“Without Unite’s legal expertise and employment knowledge, it is very unlikely that the 29 workers would have been transferred to Sony and the remaining workers would have been left without any redundancy payment at all.”
A further 111 Unite members at the Cinram warehouse operation continue to be employed by Cinram. However, Unite says that Cinram has indicated that it can’t continue without the Universal contract.
Cinram is currently up for sale - with hopes that a buyer can be found soon.
The union says that management has assured them that it can afford to pay wages for July and possibly August.
Meanwhile, the search for a buyer for the company continues. However, if that fails, Cinram will have to go into administration.
Marie Hall added: “Unite will be giving the maximum support to all the workers still employed at Cinram at what is a difficult time for them and their families.”