The London Employment Appeals Tribunal (EAT) confirmed an earlier Sheffield based labor tribunal decision and has ordered UK subsidiary of the German electronics group Kostal to pay more than £420,000 (€477,000) in fines to 56 staff in compensation for sidestepping collective bargaining negotiations. Despite the Unite union’s rejection of the company’s initial pay proposal, in both 2015 and at the start of 2016, Kostal decided to approach its employees directly via mail and tried to urge them to accept the offer individually, which is unlawful if the implicit goal is to sidestep negotiations. Unite believes this landmark decision could become UK-wide jurisprudence. When contacted by Planet Labor Kostal too believed this could well be the case.
The complex case dates back to 2015 when Kostal UK, which employs 700 in south Yorkshire, and which had just officially recognized the Unite union entered into wage negotiations with the union. As a result the company proposed a 2% wage raise for 2016 plus a Christmas bonus of £270 (€306.80). In return the company was seeking a reduction in sick leave compensation that is paid to new hires, lower Sunday pay bonuses, and one 30-minute break instead of two 15-minute breaks. After consulting with
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