European Advocate General sets legal precedent: privatised workers should retain ongoing parity of pay and conditions

Tue 19 Feb 2013

The Advocate General of the Court of Justice of the European Union, today backed UNISON’s claim that privatised workers should continue to benefit from increased pay and conditions negotiated at their previous workplace, setting an important legal precedent.

Over the past seven years, UNISON has argued that 24 members transferred from the London Borough of Lewisham to Parkwood Leisure, were entitled, under their contracts of employment, to continue to benefit from nationally agreed pay and terms negotiated by the local government pay body.

The  Alemo-Herron & Ors v Parkwood Leisure Ltd case, which has been waged through the Employment Tribunal, the Employment Appeal Tribunal,  the Court of Appeal, the Supreme Court and now the Court of Justice of the European Union, sets important legal principles both in the UK and through EU member states.

The union will now await the final decision of the Court of Justice of the European Union, which will be followed by a decision in the Supreme Court. If both courts back this ruling, TUPE (Transfer of Undertaking Protection of Employment) will again provide ongoing protection for employees, rather than a one-off protection at the time that they are transferred.

The UK government is already consulting over limiting the law in this area, as a part of its continued attack on employment rights, which the union is campaigning against.

Bronwyn McKenna, UNISON Assistant General Secretary, said:

“We are delighted that fairness has won out in this important case. UNISON supported our members to the hilt, taking our fight to the highest possible court. We knew that our members should have a right to the same pay and terms of employment which they signed up to when they took their jobs.

“This ruling will be a huge relief for the many thousands of people who have been transferred out from their original employer, including those who have been, or are now at risk of being privatised.

“We are now calling on Parkwood Leisure to pay our members what they are owed, and for other employers to honour any contractual pay increases owed to transferred staff, or run the risk of finding themselves in court.

“UNISON will continue its fight to protect employment rights, in light of the government’s plans to limit the law following this decision.”  


UNISON UK News release:
http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=2968


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Glasgow equal pay tribunal victory for UNISON

Wed 30 Jan 2013

UNISON Scotland has welcomed an Employment Appeal Tribunal ruling on equal pay which could improve the chances of low paid workers, mainly women, seeking fair comparison with other workers in councils and their associated “arms length organisations” (ALEOs).

The Employment Appeal Tribunal has decided that UNISON members working in ALEOs set up by Glasgow City Council can compare themselves with Council employees, and with employees of other Council ALEOs when claiming equal pay.

Mandy McDowall, UNISON Scotland Regional Organiser said:

“This is a welcome ruling by the Employment Appeal Tribunal and an important victory for our members.

“It means that the law allows employees of one employer to compare themselves with workers in another employer if the employers are associated – and that councils can’t slip out of their duty to ensure equal pay and fair treatment simply by hiving off services into arms length organisations.”

The Council had argued that the ALEOs were not associated employers but were completely separate companies. They also argued that because some of the ALEOs were limited liability partnerships, they could not be an associated employer, because that only applied to companies.

The Appeal Tribunal dismissed that argument, declaring that there was no justification for putting such a narrow meaning on the legislation. They went on to say that the provision allowing comparisons across associated employers was an anti-avoidance measure to prevent employers splitting up their workforce to avoid equal pay comparisons. In order to achieve that aim, they were prepared to give a broad interpretation to the legislation.

Mandy McDowall added:

“This victory shows that workers seeking equal pay are stronger together in UNISON.”

Notes for editors

1. UNISON is Scotland’s largest trade union representing 160,000 members working mainly in the public sector in Scotland and represents staff in all of Scotland’s local authorities.

2. The Employment Appeal Tribunal ruling in the case of the Glasgow ALEOs was confirmed on Friday 25 January. The claimants in this case are mostly low paid women who were transferred out to the ALEOs but want to claim equal pay with their former male bonus-earning colleagues within the Council and other ALEOs like City Building LLP.

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