EMPLOYMENT APPEALS TRIBUNAL
CLAIM(S) OF: CASE NO.
Leonard Murtagh
- claimant UD493/2013
Against
Galmere Fresh Foods Limited
- respondent
under
UNFAIR DISMISSALS ACTS, 1977 TO 2007
I certify that the Tribunal
(Division of Tribunal)
Chairman: Ms C. Egan B L
Members: Mr T. L. Gill
Mr T. John Gill
heard this claim at Galway on 25th August 2014
Representation:
Claimant(s) : Mr Michael McNamee B.L. instructed by Mr. Sean Costello,
Sean Costello & Co, Solicitors, Haliday House, 32 Arran Quay, Dublin 7
Respondent(s) : Mr Fergus Barry, HR Director
The determination of the Tribunal was as follows:-
Background
The respondent company supplies and distributes major fresh food brands to supermarkets and multiples. In late 2012 the company lost a large contract and there was extreme pressure from the bank demanding a survival plan. A decision was made to make a number of employees redundant including the claimant. The claimant’s role was subsumed by the managing director.
Summary of Evidence
The financial controller gave evidence of the financial position of the company at the time. She expressed the view that the loss of a large contract in January 2011 triggered the start of the financial difficulties. The claimant was recruited shortly after that in April 2011 as the company needed someone to drive sales. The current managing director who was recruited to the role of general manager after the claimant in July 2012 gave evidence of how the company was in poor financial shape and he had a difficult challenge to ensure the survival of the business. In November he presented a survival plan to the bank which included a multitude of cuts including redundancies. He made the decision to make the claimant redundant and he himself took on the operations manager role. He outlined the consultation process with employees which involved a number of meetings. Since the claimant’s redundancy in late 2013 the company ownership changed. The managing director denied offering an individual a sales job at a meeting in a hotel and further denied recruiting a sales manager after the claimant was made redundant but instead recruited a van driver. The witness admitted that the recruiting of a category manager rather than a commercial sales manager was explored by the respondent.
The claimant was employed by the respondent company in 2011. His appointment as commercial manager followed the loss of a large contract. Management of the respondent company explained to him at the time of his recruitment that his role was to secure new contracts and grow the business. Over the course of his employment his performance was never an issue and he managed to secure new contracts with large companies. Although he had not met his bonus target in the first year he was complimented for his work. He could see some turnaround and was confident he would achieve targets in the second year.
At an arranged sales meeting on the 19 October 2012 it became apparent to the claimant that the meeting was an at risk meeting. DD read from a script and the claimant soon realised his job was going. The claimant accepted that other meetings did take place however no other alternative or option of a pay cut was considered or offered. The claimant had some knowledge that the company was under financial pressure but was never made fully aware of the financial situation.
Determination
The Tribunal, having carefully considered the evidence adduced at the hearing by both parties, is of the view that no meaningful engagement or consultation process took place in this case. The respondent failed to provide evidence of giving any adequate consideration to alternatives and never gave the claimant the opportunity to come up with suggestions on saving his role in the company.
It appears from the evidence, which was not refuted by the respondent, that a pre-prepared signed letter was given to the claimant at the final meeting advising him of his redundancy.
In all the circumstances the Tribunal finds that the claimant was unfairly dismissed. The Tribunal awards the claimant €25,000.00 under the Unfair Dismissals Acts, 1977 to 2007.
Sealed with the Seal of the
Employment Appeals Tribunal
This ________________________
(Sgd.) ________________________
(CHAIRMAN)