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Article: Parent Problems - The Duty To Consult On Mass Redundancies.
- Article from:
- Mondaq Business Briefing
- Article date:
- October 11, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The European Court of Justice has given some guidance on some of the issues that arise when a company has to undertake collective redundancy consultation as a result of a strategic decision taken by its parent company.
The case of Akavan Erityisalojen Keskusliitto AEK ry and ors v Fujitsu Siemens Computers Oy concerned Fujitsu Siemens Computers Oy (FSC), a Finland-based subsidiary of Fujitsu Siemens Computers (Holding) BV (the parent company).
At a meeting held on 7 December 1999, the executive council of the parent company decided to make a proposal to its board of directors to close the Finnish factory. A week later the parent company board decided to ...