Distillery loses legal battle to employees

Distillery workers who were told their jobs would be subcontracted if they refused to accept a pay offer have received a “significant” ruling at an employment appeal tribunal.

Thirteen employees have won their legal battle against a distillery at an employment appeal tribunal

Thirteen staff at Loch Lomond Distillery in Scotland were outsourced to another firm under Transfer of Undertakings Protection of Employment (Tupe) regulations.

However, management failed to divulge to trade union Unite that the reason behind the transfer was a pay dispute.

“This is the first time that a court has made it clear that the obligation to speak to the union isn’t just an obligation to say anything you like, it’s an obligation to tell the truth,” said David Martin, lawyer on behalf of the distillery staff, as reported by Herald Scotland.

“It’s a significant decision for trade unions and for employers. A lot of employers might treat the need to consult as a bit of a tick-box exercise.

“They think ‘we have to do it but it doesn’t really matter what we tell them’, but this decision says otherwise.

“It says if you’re not honest and upfront you can be challenged.”

A spokesman for Loch Lomond Distillery commented: “This matter occurred under a previous ownership of the business in 2012 and has been between the employees in question and the previous owners.”

Strike action

Staff had turned down a 3% pay rise offer despite the threat in June 2012, employment judge Fiona Garvie was told during the original employment tribunal.

The employees then informed distillery management of their plans to take strike action, but were told two days later that they were being subcontracted to Peopleforwork Ltd, and the possibility of being made redundant.

Loch Lomond Distillery claimed the move was as a result of a drop in profits, but the tribunal later learned of the pay dispute concluding there had been a breach in Tupe regulations.

An appeal by the distillery was rejected and the decision to award in favour of the employees upheld by Court of Succession judge Lady Stacey.

Peopleforwork made Brian Kane, former distillery employee, 43, redundant after the transfer along with three of his colleagues.

“We refused a pay rise, but it wasn’t really about the pay rise. If we had backed down and agreed at that point, they would have kept making the same threat every time there was an issue, so we had to make a stand.

“It’s taken two year to get to this point, but we’re happy with the outcome.”

Loch Lomond Distillery now faces paying a significant sum of money to the 13 staff involved in the case.