A Spanish court has ruled that the International Airlines Group (IAG), the parent company of BA, Aer Lingus, and Iberia, was in breach of its European Works Council information and consultation obligations when it failed to consult its EWC on 12,000 job cuts in 2020.
Why it matters: The court's ruling highlights the importance of consulting with the European Works Council and respecting information and consultation obligations.
The big picture: The court's decision contradicts IAG's claim that the issue was not transnational, emphasizing the need for companies to consult with the EWC regardless of the scope of the issue.
What's next: The company may face fines depending on the outcome of further court hearings.
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Additional information:
BEERG Comment: As can be seen from the ETUC statement (linked below), the unions have seized on the judgement to bolster their case for courts to be able to issue injunctions in such situations. We disagree. We think that where differences of interpretation of agreements arise, the role of the courts should be to clarify the agreement for the future, not to block management decisions.
Second, EWCs can issue an opinion at the end of an information and consultation procedure. Management is not bound by that opinion in any way. It may be the better course of action for management just to go ahead and meet with the EWC and get their opinion. The time and cost involved will be a lot less than the time and cost involved in going to court.
Links:
https://www.etuc.org/en/spanish-court-rules-favour-ewc-international-airlines-group
https://www.poderjudicial.es/search/AN/openDocument/adaaa2c287e43d9da0a8778d75e36f0d/20231002 (in Spanish)
