Kostal UK: Justices to rule on collective bargaining case

Kostal UK Ltd won an appeal against an earlier decision by an employment tribunal

The Supreme Court is to decide whether workers at an automotive parts firm were offered "unlawful inducements" to accept a pay offer.

The Unite union took Rotherham-based Kostal UK to an employment tribunal over claims it had tried to bypass union pay negotiations.

The union won the case and workers were awarded £420,000 in compensation.

However, the Court of Appeal overturned the decision in 2019. No date has been fixed for the Supreme Court hearing.

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Unite's case is that after members voted to reject the company's pay offer and changes to terms and conditions in 2015, Kostal UK then wrote to all 700 workers urging them to accept the offer individually or risk losing their Christmas bonus.

The company repeated its offer in January 2016 to those workers who had not already accepted it.

'Trade union recognition'

An employment tribunal in Sheffield ruled the offers by the company amounted to unlawful inducements in 2017 and that 55 workers should be compensated for each offer made to them.

The decision was upheld by the employment appeal tribunal.

The company maintained it had not attempted to induce its workers to opt out of collective bargaining and the Court of Appeal agreed, overturning the earlier rulings in favour of Unite and its members.

Unite assistant general secretary Howard Beckett said he was delighted the Supreme Court was allowing the union's appeal.

"This is a case which goes right to the heart of trade union recognition and the right to collectively bargain," he said.

"It is one that we will continue to pursue to protect trade union rights and to get justice for our members."

The BBC has contacted Kostal UK for comment.