Staff win fight over 'zero hours' contract
STAFF at a Stallingborough car logistics company have won a legal battle over the introduction of a "zero hours" contract.
Seventeen workers at Paragon Automotive Ltd won claims of unfair dismissal in a dispute over contracts which gave the company the right to say how many – or few – hours staff could work.
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The entrance to Paragon Automotive in Kiln Lane, Immingham.
The company, based at Kiln Lane, operates as a bulk processor of cars, undertaking new vehicle preparation and used vehicle refurbishment work for major fleet operators and car manufacturers.
The staff claimed unfair dismissal because it brought their old contracts of 40 or 45 hours to an end, thereby, they claimed, ending their employment, and putting into place the flexible contract.
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Chris Randall of Grimsby's Bridge McFarland, the law firm which fought the case for the workers, said zero hours contracts are condemned because "they provide no certainty for the workers and can provide absolute power to the employer".
The 17, all members of the union Unite, objected to the zero hours contract, but signed on the proviso they would challenge it. The remaining 63, who are not union members, signed the new contracts with no formal objection.
Following an employment tribunal hearing at Hull, 15 reached an out-of-court settlement securing reinstatement to their original contracts of employment. Two won compensation at an employment tribunal in Leeds.
Mr Randall said: "This case sends a warning to employers that despite difficult times, the state of the economy cannot be used as an excuse to implement measures at will."
Malcolm Hancock, of Unite, said: "These were extremely draconian actions that were proposed by Paragon Automotive.
"However, with the support of Unite, our members demonstrated that by standing together they could protect their terms and conditions of employment".
Management at the Immingham branch of Paragon were unavailable at the time of going to press.
Comments
by Southern Paragon worker, Northants, Bedfordshire, Oxfordshire
Wednesday, February 17 2010, 7:17PM
“Got to love the internet. News of this is filtering around all the other Paragon sites too.
At a Northants site we were basically told 'to sign or walk...' but it couldn't be perceived as an unfair/constructive dismissal said the company solicitor!
We were in the same situation as the commentor (12th feb), so eventually people signed.
Very few were in a union, so were reluctant to push too far by themselves.
It was dragged out to the third and fourth week of the 'consultation' (read: better get used to it) period though.
Will be interesting to see the managements reaction down here now.”
by paragon worker, cleethorpes
Friday, February 12 2010, 11:59AM
“just to clarify,the 63 who signed did object,but were told basicaly sign or theres the door,in not so many words,they were not allowed a solicitor on site,only the union,they could not even put a letter in to say they signed under pressure,with the job situation at the moment,mortgages to pay,children to look after,what would you have done?”
by not usually militant, Barton
Thursday, February 11 2010, 9:15PM
“How can anyone provide for a family with no guarantee of any pay? Seems to me they took a brave decision and should be respected for it - if everyone did the same, firms might not try it on. With all the job losses in the NE Lincs car trade right now, all the best to everyone affected.”
by workers rights supporter, Grimsby
Wednesday, February 10 2010, 5:43PM
“Chris from Grimsby, if that were to happen surely that would be a new case for the Trade Union .....Discrimination!”
by Chris Poole, grimsby
Wednesday, February 10 2010, 2:14PM
“With redundancies looming for the Grimsby and Immingham sites I wonder who the first 17 people will be who go.”
by Trade union supporter, grimsby
Tuesday, February 09 2010, 9:41PM
“What is interesting is that those who fought to get the original contracts back put their jobs, income and reputation on the line! This was done to secure some sort of security and basic rights for all workers and their families for all who were willing to stand united against the bosses who decide that the fate & livelyhood of their workers rest entirely in their hands!”
by m, cleethorpes
Tuesday, February 09 2010, 7:54PM
“at least they will get full redundency if they do unlike the ones that signed they will only get a fraction good on them standing up and taking them on!”
by Paragon Worker, Limbo!
Tuesday, February 09 2010, 9:12AM
“They may have won the 'zero hour contract' battle now they have the battle of keeping their jobs while redundancies are taking place! How Interesting!”