UP TO 500 former Dell workers could be in line for further redundancy payments if an Employment Appeals Tribunal finds the multinational breached employment regulations when it laid off almost 2,000 staff at its manufacturing facility in Limerick three years ago.
Dell Products yesterday appealed a recommendation by the Rights Commissioner Service of the Labour Relations Commission, which found that 28 former employees were entitled to two weeks’ extra pay after they claimed the company was in contravention of the 1977 Protection of Employment Act.
The rights commissioner found that the company breached strict requirements set out in section 9 of the 1977 Act because of actions taken by them on January 8th, 2009. On that day it announced an involuntary separation programme which would mean a reduction of about 1,950 employees over a phased basis, while individual letters were sent out on the same date.
During the hearing at the tribunal in Limerick yesterday, Peter O’Brien on behalf of the employees said Dell’s announcement in January 2009 was one of the largest “if not the largest mass redundancy in the history of the state”.
Mr O’Brien said on the same day the company had given employees an individual letter with details of the severance programme.
He said Dell was well used to making decisions in relation to its assets and employees and moving pieces on the “corporate global chess board” and claimed the company failed to engage in a “real and meaningful” consultation process before announcing the mass redundancy in Limerick.
When called to give evidence, former Dell worker Denis Ryan said rumours that Dell was planning to reduce staff numbers at its manufacturing plant in Limerick were widespread in the months leading up to the announcement.
He recalled how the then minister for defence, Willie O’Dea, and the former tánaiste, Mary Coughlan, had visited Texas in a bid to save the jobs.
He also claimed that an article had appeared in the New York Times stating Dell planned to cease production in Limerick, before the announcement was made.
In his evidence, Dell HR manager in Limerick Kevin Costello said employees were informed at the meeting on January 8th that the company was planning to migrate its manufacturing facility to Poland.
Mark Connaughton on behalf of Dell said the company had engaged in a major process of consultation with employees from that date and insisted that no letters of termination were issued prior to May 1st, 2009.
Mr Connaughton said any letters sent to staff prior to that date could not be properly construed as notices of termination.
Should yesterday’s appeal by Dell be rejected, up to 500 other former employees who have lodged similar applications with the Labour Relations Commission could be entitled to further redundancy payouts.
It is understood the extra two weeks’ pay would amount to about €1,000 per worker.
Employment Appeals Tribunal chairman James Lucey said a decision on yesterday’s hearing would be made in due course.