Lack of union consultation over closure of a manufacturing plant in the UK
Lead NCPUnited Kingdom
Supporting NCP(s)None Selected
DescriptionSpecific instance notified by two trade unions, Amicus and T&G, regarding the activities of PSA Peugeot Citroen operating in the United Kingdom.
Theme(s)Employment and industrial relations
Date28 Jul 2006
Host country(ies)United Kingdom
SourceTrade Union
Industry sectorManufacturing

Read the final statement issued by the UK NCP concluding the specific instance - 1 February 2008

In July 2006 the UK NCP received a request for review from two trade unions, Amicus and T&G, alleging that PSA Peugeot Citroen had breached the employment and industrial relations provisions of the Guidelines in the United Kingdom. Specifically it was alleged that the company had failed to undertake a meaningful consultation with the unions when closing down the Ryton manufacturing plant in Coventry, England.

In this case, the NCP did not produce an initial assessment because mediation between the parties was inappropriate since Peugeot was not in a position to reopen the plant and had no further information to provide to the NCP.

After reviewing the facts, the NCP found that Peugeot had provided reasonable notice of the closure of the Ryton Plant along with a redundancy package significantly above the legal requirements. However, the NCP also concluded that Peugeot had failed to fulfil all the requirements under the Guidelines in that the company should have engaged with the unions when the decision to make the closure of Ryon was at a formative stage and should have provided sufficient information to allow the unions to understand the reasoning for the decision.