The High Court has refused an application by two trade unions, Siptu and the TEEU, to be joined to the court action brought against the Government by the Greencore group over how €145.5 million in EU sugar industry restructuring aid is to be allocated.
The unions had sought to be notice parties to the action in order, they said, to ensure that former employees of the company received their full redundancy entitlements in line with a Labour Court recommendation.
There is a dispute between the unions and Greencore relating to how much redundancy is to be paid. The unions claim it is some €32.8 million but that Greencore had told the Government the figure was €28.4 million.
After hearing submissions yesterday, Mr Justice Peter Kelly said there was a stand-off between the unions and Greencore relating to how much redundancy was to be paid.
However, that was not at issue in the action by Greencore against the Government and, irrespective of the outcome of the action, Greencore was obliged to make the redundancy payments.
The judge also noted that the Government could have required Greencore to make provision for redundancy in a sum in excess of the statutory minimum redundancy but had not done so. In those circumstances, it was difficult to see how it could benefit the unions by joining them to the action.
The unions had failed to establish they had a vital interest in the outcome of the action and he would refuse the application to join them as notice parties, the judge said. Their dispute was with Greencore and was nothing to do with the issue between Greencore and the Government.
Both Greencore and the Government had opposed the application by Siptu and the TEEU to be joined. Paul Sreenan SC, for Greencore, said Greencore would pay the employees' legitimate entitlements and the issue of how that was funded was of no concern to the unions.
Nuala Butler SC, for the Government, said there might be a bona fide dispute between Greencore and the unions but that was not the issue in this case.
Also yesterday, the judge ordered the Government to give Greencore the minute of its decision on how the €145.5 million in aid was to be allocated.
