Irish, British and German unions have told their members in the Guardian Royal Exchange Group not to co-operate with the company's plans to establish a European Works Council. Senior MSF official Mr Jerry Shanahan, who represents 1,0000 Irish employees of the group at PMPA, said the company is bypassing Irish and European legislation to impose illegal structures on its employees.
MSF will take legal action if the group presses ahead with plans to initiate a works council next month without consulting its unions.
The group's unions formally requested negotiations on establishing a works council on July 11th. According to Mr Shanahan the company failed to respond.
Instead, on July 14th, it issued an internal memorandum to staff announcing they would be balloted on terms of reference for a works council from August 15th to September 12th.
A spokesman for Guardian Royal Exchange said: "It is not the company's view that it is in breach of legislation. It's our intention is to involve all employees in the process." It has no plans to defer the ballot.
However MSF, its German counterpart HBV and the British banking union BIFU, are all insisting that the company must introduce its works council in accordance with national legislation already in place in either Ireland or Germany.
