‘Sham’ consultation

Dairy giant Arla Foods faces possible ‘substantial’ damages and costs over its ‘failure to consult’ before announcing that 230 jobs would be lost at its fresh milk processing plant in Essex.

Unite has instigated legal proceedings claiming that Arla Foods failed to properly consult the workforce and their union when it announced that 230 jobs were under threat at the Hatfield Peverel site in March.

If this case goes to an employment tribunal, Unite believes that the total costs and damages for the company are likely to run into hundreds of thousands of pounds.

Unite said that the management decision to close was made in January and February and the 45-day consultation process where Unite could have made counter proposals to save jobs was a sham, as the union was faced with a fait accompli.

Unite is taking legal action on behalf of its 75 members at Hatfield Peverel under the Trade Union and Labour Relations (Consolidation) Act 1992 claiming the company failed to inform and consult on collective redundancies.

“Our claim is that Unite was effectively only consulted on the consequences of the decision to close the site after the decision had already been made,” said Unite regional officer Mark Barter.

“There was no consultation on ways to avoid the dismissals and/or reduce the number of dismissals in good time prior to the decision actually being made, as required, or at all.

“We were told quite clearly by local management that the decision was made to close the site between January and February and, in fact, the board of directors’ minutes at the end of January actually agreed to look into accelerating the closure,” he added.

“Yet Unite wasn’t notified until March, so any consultation then became a fait accompli; basically it was a sham process.

“Unite legal services are now involved and our solicitors have now written to our members regarding our potential claim which would involve a protective award of up to 90 days compensation per member,” Barter noted. “The company is aware that we have started legal proceedings.

“If this case goes to a tribunal hearing, the total costs and damages for Arla Foods are likely to run into hundreds of thousands – a substantial figure, so we urge them to settle now.

“We have also registered for early talks with the conciliation service, Acas on this matter,” he added.

“This was nearly two weeks ago. Acas has approached the company and, as yet, I have yet to hear back from Acas so I presume that the conciliation service is still waiting for a response from Arla Foods.

“The consultation process has now ended and termination dates are being handed out to workers, although these look like they are being staggered.

“We are taking this action as Unite strongly objects to companies making redundancies without entering into a genuine consultation process with the respective trade unions,” Barter argued.

“We claim that Arla Foods is flouting, not only the letter, but the spirit of the 1992 Act – and this should not go by unchallenged.”

@ShaunSearsNoble