Business

Start-up founders lose discrimination claim against Enterprise Ireland

Founders allegedly told their firm ‘didn’t have enough diversity’

Mark Keenan, Michael O’Reilly and Robert Yorke, the owners of sharing economy platform LendRB Ltd, brought equality claims against Enterprise Ireland. Photograph: Colin Keegan, Collins Dublin

Stephen Bourke
Fri Mar 22 2024 - 11:32

Three start-up founders who accused Enterprise Ireland of discrimination because they were allegedly told they “didn’t have enough diversity” during an interview for State investment have seen their case rejected by the Workplace Relations Commission a second time.

Mark Keenan, Michael O’Reilly and Robert Yorke, the owners of sharing economy platform LendRB Ltd, brought equality claims against Enterprise Ireland over the remark, allegedly made by a member of a panel who interviewed the three complainants in relation to their application for funding under a scheme for investment funding in May 2022.

“The comment was directed at us saying that we didn’t have enough diversity,” Mr Keenan, the company’s chief financial officer said.

“None of us liked it ... we were kind of in shock when it was said,” he added. He said none of the panellists on the call said anything and “basically agreed with it”.

READ MORE

“Longford doesn’t seem to get any funding from Enterprise Ireland at all. The midlands get three times less funding compared to our population. Dublin, where all the panellists seem to be from, get two times [the funding proportionate to] their population,” he said.

Enterprise Ireland’s barrister, Niamh McGowan BL, appearing instructed by A&L Goodbody, argued the matter had already been ruled on earlier in 2023 when the WRC rejected a previous complaint, finding it was statute-barred both because it had missed the statutory deadline and because a corporate entity cannot refer an equality claim.

Mr Yorke said: “The discrimination occurred against us as individuals, not the company.”

“The fact that we were discriminated against meant that we were directly affected as we were the only three shareholders in the company,” he added.

Mr O’Reilly said: “We were going through their course, through their mentorship. We were applying for CSF [Critical Start Fund] funding at their direction. Whether or not we were directly employed by EI is kind of a moot point.”

When the prior complaint was heard, the original form submitted was amended by the adjudicator, Niamh O’Carroll, to refer to the corporate entity rather than Mr Keenan, after he said the complaint ought to be in the company’s name rather than his own. At the time he was recovering from a motorbike crash in Thailand and had asked for a postponement of the proceedings on that basis, the tribunal heard.

At the new hearing in November, his colleague Mr Yorke said: “I don’t think Mr Keenan was in a position to make that call as he was under medication. He was in a very serious road traffic collision,” Mr Yorke said.

“I got all that. I got all that information and that’s all dealt with in the decision,” adjudicating officer Niamh O’Carroll told him.

“Labour Court,” Mr Keenan said.

In her prior decision, published by the WRC in September 2023, Ms O’Carroll noted a medical cert from a Bangkok hospital doctor describing a “lacerated wound to [Mr Keenan’s] right knee, with multiple abrasion wound[s] at both arms, right leg and foot” and instructing him to “rest for 15 days”.

When asked by the adjudicator what medication he had been prescribed, he replied: “That is none of your business, it is literally none of your business. Who do you think you are asking me that question?”

Ms O’Carroll wrote that she was “not satisfied [Mr Keenan] was unfit to proceed” and noted that he later “bombarded” both herself and the WRC with “emails that could only be described as disrespectful, offensive and completely inappropriate”.

When Ms O’Carroll said Mr Keenan’s conduct had been “nothing short of disgraceful” at the previous hearing, Mr Yorke said: “It was due to stress, I’m sure.”

“I was quite taken aback by his approach, I have to say, not only before the hearing, but during the hearing and after the hearing,” she said.

“Excuse me, that’s a defamatory statement,” said Mr Keenan.

“It’s in the decision, I’m not going back over it,” Ms O’Carroll said.

“Labour Court,” Mr Keenan said.

In a decision published today on the most recent complaint, Ms O’Carroll quoted her original findings and said the new claim was “identical”.

“I can find no distinguishing fact that could allow me to adjudicate on this complaint again. Therefore, the complaint fails,” she wrote, rejecting the complaint under the Employment Equality Act.

  • Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
  • Find The Irish Times on WhatsApp and stay up to date
  • Our Inside Business podcast is published weekly – Find the latest episode hereThree start-up founders who accused Enterprise Ireland of discrimination because they were allegedly told they “didn’t have enough diversity” during an interview for State investment have seen their case rejected by the Workplace Relations Commission a second time.
LATEST STORIES