Debenhams redundancies ‘predetermined’, union official claims

A trade union official has claimed the decision to make Debenhams staff redundant two years ago was “preordained and predetermined” before they were told the company was going into liquidation.

The hearing of a test case into the redundancies of 750 Debenhams workers two years ago opened before the Workplace Relations Commission (WRC) on Wednesday. It is the largest group of complaints to be handled by way of a test case at the WRC this year.

The former employees argue that both the management of Debenhams Retail Ireland Ltd and the business’s liquidators — Andrew O’Leary and Kieran Wallace of KPMG — failed to provide information or meaningfully consult with their trade union representatives over their redundancies.

The liquidators deny the claims.

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The trade union says letters sent by its then-divisional organiser Gerry Light to the firm outlining the requirement for consultation “fell on deaf ears” and that the liquidator, Andrew O’Leary of KPMG, “asserted [that] his primary duty was to liquidate the assets to the maximum benefit of the shareholders”.

“We strongly argue the respondent only provided rudimentary information and not substantive information as required,” said Michael Meegan, the union official running the case for Mandate.

Kelley Smith SC, who appeared for the liquidators, instructed by Matheson Solicitors, said there had been “full compliance” with the requirements of the Act on both information provision and consultation. “There were four meetings. All meetings were open to questions. [Mr O’Leary] answered all questions and where he didn’t have information he provided written answers,” she said.

Mr Light said in evidence it was the union’s position that the decision to make the workers redundant had been “preordained and predetermined on a date prior to April 8th, 2020″.

Mr Light said the union had sought information including the financial position of the company; which of the Irish stores were loss-making and what revenues were being derived from Debenhams’ online business at the time. He said the trade union was entitled to this information by law in order to make proposals on avoiding or mitigating the impact of redundancies on its members.

He added that there had been a collective agreement agreed five years earlier requiring the firm to pay two weeks’ pay per year of service to its members in addition to their statutory redundancy rights.

Mr O’Leary said in his evidence that the UK firm was asked whether it was “willing to advance financial support”.

“The response back was: ‘We have serious issue of our own here and we’re not going to be in any position to provide support to any subsidiary,’” Mr O’Leary said.

He said he “totally” disagreed with the union’s claim that the consultation was a “cursory box-ticking exercise”.

Mr Meegan put it to him that the redundancy decision had been taken by the board of Debenhams Ireland and was a “fait accompli”.

“I wouldn’t agree with that. It doesn’t matter what decisions have been made prior to our appointment,” Mr O’Leary said.

Some former staff rallied in support outside the employment tribunal’s headquarters at Lansdowne House, Dublin 4, on Wednesday morning as Ms Crowe entered the building with Mr Light.