Beleaguered recycling giant SKM has been ordered to pay $1.2 million in compensation for a massive fire at its Coolaroo plant in 2017, compounding the company’s spiralling financial woes.

More than 210 residents, businesses and property owners launched a class action against the company seeking compensation for a range of costs, including lost income and temporary accommodation expenses.

The fire at SKM's recycling plant in Coolaroo in 2017. Credit:Penny Stephens

The Age can also reveal that SKM has failed to pay some employees superannuation, with one worker saying the situation had lasted more than a year.

On Thursday the Supreme Court approved the compensation claims by plaintiffs who live and work in Coolaroo and Dallas in Melbourne's north.