Engineering news
Rotherham-based Kostal UK, which manufactures advanced electronic and electromechanical products, faces a bill that could reach £425,000 after an employment tribunal ruled that it had breached the 1992 Trade Union and Labour Relations (Consolidation) Act.
A total of 56 members of Unite the union employed at the firm are set to receive ‘compensation’ payments of up to £7,600 each after bosses tried to put a pay offer directly to individuals which included changes to their terms of employment.
In November 2014 the majority of the 700 workers at the company voted in favour of Unite being their recognised union for collective bargaining purposes. A recognition agreement was then signed with the company.
In November 2015 a pay offer of 2% for 2016 and a £270 Christmas bonus was put to union members and rejected by 80% in a consultative ballot.
The union then said that rather than continuing with the pay negotiations as it should, the company wrote to individual employees urging them to accept the offer and change their terms of employment, otherwise they would lose their Christmas bonus of £270 each. This offer was repeated in January 2016.
Unite Legal Services brought claims on behalf of 57 members to whom the offer was made and the judgment following the Sheffield hearing in November 2016 was received last week.
Employment Judge Little said: “We take the view that it is not permissible for an employer to abandon collective negotiation when it does not like the result of a ballot.
“If there is a recognition agreement, which includes collective bargaining, the employer cannot drop in and out of the collective process as and when it suits its purpose.”
Unite regional officer Simon Coop said: “It was disappointing that we had to bring these claims to the employment tribunal in the first place, but we felt it was essential that we defended the collective bargaining process. I am delighted that the tribunal accepted our arguments and agreed with us that the employer had crossed a line.
“This is a victory for the solidarity our members showed when being put under intense management pressure – and should send out a strong message to other employers considering such underhand tactics,” he added.