Guinness unions seek to define EWC consultation after job cuts announced

In autumn 2000, in the context of job cuts announced by management, trade unions at Guinness Ireland threatened to take the issue of what constitutes "consultation" of a European Works Council to the European Court of Justice, if necessary. This move could establish ground-rules for all other EWCs.

A definition of the meaning of "consultation" as it applies to European Works Councils (EWC s) is being sought by worker representatives on the European Forum (or EWC) of Diageo, the parent company of Ireland's major brewer, Guinness. They were expecting to receive a response to their request for a definition from the company at a meeting of the Forum in mid-October 2000. If they were not satisfied with this definition, they were expected to refer the matter through third-party conciliation to Labour Court adjudication. If the issue reaches this stage, it may well be referred to the European Court of Justice, as the Labour Court has done in the past when interpretation of European legislation is needed.

If this happens, the decision could have Europe-wide implications, given that neither the timing nor the nature of "consultation" at EWCs has been comprehensively tested at this level since the EWCs Directive (94/45/EC) and its national implementing legislation came into effect from 1996 onwards.

The issue arose after Guinness announced that it planned to cut 300 out of 360 jobs at its operations at Dundalk in Ireland, moving some of the jobs to the UK. Worker representatives are critical about the level of consultation before this announcement. While it is understood that the issue of overcapacity at Dundalk had been mentioned at an EWC meeting in June 2000, the trade unions regarded this as merely "information".

In a letter to management representatives, the worker representatives state that consultation means that "we are informed, and our views sought, before final decisions are made," adding that "consultation about the implementation of decisions already made is simply not acceptable." They add: "Our views should be sought at a point in the decision-making process that allows us sufficient time to formulate a properly prepared response which can be taken into account by management when finalising decisions. We fully accept that the final decision will be management's. We appreciate the difference between consultation and co-determination."

Meanwhile, the Guinness rationalisation plans themselves have been put on hold for the moment after an agreement at national third-party conciliation level, while the unions examine financial data relating to the closure, in an attempt to formulate alternatives to the company's plans.