MG Rover has won a UK landmark legal battle over the car maker’s “jobs for life” agreement as three Court of Appeal judges overturned an earlier county court ruling that would have made it difficult for the struggling car maker to lay off workers.
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The Daily Telegraph said Rover’s “The Way Ahead” agreement, struck in 1997 between the unions and then-parent BMW, gave workers the right to remain with the company without the threat of compulsory redundancy but was tested when Rover tried to make around 100 workers at its Longbridge plant redundant and an employee of 14 years took the company to court.
Backed by the Transport & General Worker’s Union, she initially won her case but Rover appealed and three judges upheld the appeal yesterday, the paper said.
According to the Telegraph, Lord Justice Keene said in his judgment that the agreement was not intended to be incorporated into the contracts of employment of individual employees.
A spokesman for MG Rover which employs 6,100 workers at the Longbridge plant, told the newspaper: “The company welcomes the unanimous ruling by the Court of Appeal judges in favour of the company’s right to manage the business in the face of changing business conditions. However, it will not change the way MG Rover works with the unions to avoid compulsory redundancies wherever possible.”
The Telegraph said the ruling sparked fears of job losses after the judges refused the union the right to appeal to the House of Lords.
A spokesman for the T&GWU told the paper: “We are very disappointed by the Appeal Court’s ruling. We are studying it in detail and looking to take further legal advice. However, we are heartened by the company’s response regarding future discussions with the unions about compulsory redundancies.”
According to the Daily Telegraph, MG Rover also confirmed that its Longbridge factory will shut for four days next week, and an extra four days over Christmas, prompting speculation that the car maker is trying to cut stocks of unsold vehicles – sales of Rover-badged cars slumped by more than 35% in September.
A spokesman told the paper: “We are re-balancing our stocks and coming back to work on January 3 in full production.”
