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You are here: BAILII >> Databases >> United Kingdom Employment Appeal Tribunal >> Chronos Richardson Ltd v. Watson [2001] UKEAT 1340_99_2703 (27 March 2001) URL: http://www.bailii.org/uk/cases/UKEAT/2001/1340_99_2703.html Cite as: [2001] UKEAT 1340_99_2703 |
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At the Tribunal | |
On 23 January 2001 | |
Before
MR COMMISSIONER HOWELL QC
MR B V FITZGERALD
MR H SINGH
APPELLANT | |
RESPONDENT |
Transcript of Proceedings
JUDGMENT
Revised 3/05/2001
For the Appellants | MR THOMAS LINDEN (of Counsel) Instructed By: Ms Lucy Atherton EEF Solicitor Broadway House Tothill Street London SW1H 9NQ |
For the Respondent | MR BRIAN NAPIER (of Counsel) and MR TODD (Solicitor) Messrs Hopkins Solicitors Waverley House 37 West Gate Mansfield NG18 1SH |
MR COMMISSIONER HOWELL QC:
"(1) Whether the majority of the Employment Tribunal erred in law in substituting their own view about suitable criteria for selection and the adequacy of consultation in the procedure adopted;
(2) Whether in quantifying compensation the Employment Tribunal erred in law in not taking into consideration the principles in Polkey v A E Dayton Services Limited [1988] ICR 142."
It was common ground that if the appeal succeeded on either issue, the case would have to be remitted for reconsideration by a further tribunal: in particular because both parties would need to consider in the light of our judgment whether there was further evidence they might be able to adduce on fairness, or compensation, or both.
"4. Following the Joint Consultative Council meeting, Mr Hubber had been told that he would have to reduce the purchasing function by two employees. He decided that that would be one buyer and one secretary. The respondent had had to make a number of redundancies in recent years and, for approximately the last three years, had had a standard assessment form for those redundancies. That form was not agreed with the workforce, but no-one had ever objected to its use. It set out six factors, which would be assessed by someone having knowledge of the operatives involved. Each factor was marked on [a] points system of one to five, and then given different weightings. Five further factors would then be completed by the personnel department, which related to documentary factual matters such as length of service, sickness, warnings etc. All of these factors also had a weighting, but less than the factors which related to performance. Mr Hubber, who was the only person appropriate to assess buyers, completed forms for each of the five buyers. The applicant ended up with 365 points. The next lowest member of the department was Mrs Tuke who had 400 points. The points given by Mr Hubber he gave on the basis of his knowledge of the buyers. We did ask the applicant if he could suggest any reason why Mr Hubber should mark him down because of any personal animosity and he was only able to refer us to an incident in the summer of 1998, when the applicant had asked for a pay increase, which Mr Hubber had not passed on to the director above him so that the applicant had gone above Mr Hubber. There is nothing, however, that we have heard to suggest that the scoring by Mr Hubber was influenced by any personal objection to the applicant and we accept that the scoring was what he believed to be correct.
5. Under the category of "job knowledge/skill", the applicant received four points (which with a weighting of 20 in that category came out at 80 points). Mr Wright, who the applicant accepts was exceptionally knowledgeable and skilled, was given 100% (which is the only 100% mark given); Mrs Tuke got 60 points and the others all 80. For "quality/quantity of work" all of the buyers were recorded as 80. For "flexibility/co-operation", both the applicant and Mr Wright were marked at 60, whereas the others were all at 80. The reason that Mr Hubber did that was because he found that both the applicant and Mr Wright tended to work very much on their own and did not want to move outside their own specialisation. In his view, they were not as willing as the other buyers to help in other areas, including for example answering other people's phones. On "communication skills", he gave everyone 45 points apart from Mrs Tuke who was given 60 (one category above)(, which she got because of her specialised computer skills. Under the category of "effective use of time to achieve results", Mrs Lawley and Mrs Tuke got 30 points and all of the rest, including the applicant, 40.
6. For "team contribution", the applicant and Mr Wright were given 20 points, Mr Francis 30 and Mrs Lawley and Mrs Tuke 40 each. Mr Hubber's reason for that was that, by reducing the number of buyers, the buyers would have to work much more as a team and cover each other's work. There was a proposal that computerisation would be introduced where they would be able to work together more. He marked the applicant low for that because of the way that he worked on his own and was not keen to help other people. In particular, the applicant worked on the batching side of mechanical purchasing. As he himself explained to us, he saw himself as part of a vertical group, being the whole batching team from the manufacturing upwards. Mr Hubber wanted the buying team to be across the range of products as a horizontal team. Mr Wright was also marked low under this category, because he also worked very much on his own and did not want to help others or get involved in other areas of work. Mrs Tuke and Mrs Lawley both received a score of 40, because Mr Hubber felt they would be better able to work in the team. In particular, in relation to Mrs Tuke, although she had not worked on the mechanical side of the business for very long, she had experience on the electrical side and would therefore be useful as cover during any absence of Mr Wright, who otherwise would now be the only person dealing with electrical purchasing.
7. The other areas of points were based on measurable standards. The applicant did badly on his qualifications, as he does not have any formal qualifications and also did badly on absence because he had had more absence in the last year than most of the other employees. In assessing the skill levels of the two shorter-serving members of the team, Mr Hubber took into account the fact that both had previous buying experience with other companies.
8. Once Mr Hubber had completed his scoring, Mrs Monk [personnel officer] added the scores from the personnel records and then there was a discussion between them. Although Mrs Monk was not aware of the capability of the various operatives, she went through with Mr Hubber why he had made the assessment he had, to ensure that he had considered each of the buyers properly. Mr Hubber confirmed to her, as he did to us, that this was largely a matter of ranking people within the five grades. In the six categories, the applicant had received four points for three of them, three points for two and had only fallen below the middle-ranking position in relation to "team contribution", where had been given two points. As a result of the assessment showing the applicant had the lowest score, arrangements were made to see him.
9. The applicant was seen by Mr Hubber and Mrs Monk on 10 May. At that stage he did not know what was going to happen. A script was read by Mr Hubber at the start of the meeting in which he confirmed that orders were reduced, that elements of batching and bagging would be combined and that as a result the applicant had been provisionally selected for redundancy. There was then some discussion about the position, lasting about ten minutes. The applicant was upset and said he would take the matter to a Tribunal. He was given a copy of his personal score sheet. He did raise the question of what scores the two lady buyers had received and was told that the respondent was not prepared to discuss other people's scores. Little otherwise was said at that meeting and the applicant was told that efforts would then be made to see if there were other vacancies available and that he could go home pending further consultation. He was told that the further meeting would probably be arranged for the following Friday and he asked for that to be sent to him writing.
10. The second meeting took place on Friday 14 May with the same people present. There were no suitable alternative positions for the applicant. At the second meeting the applicant did refer to the fact that in the previous year he had made the biggest savings of any of the buyers and asked why that had not been taken into account. He was told it was not part of the assessment process. Other than that, he did not raise any specific issue about the categories or weighting of those categories in the respondent's redundancy system. The applicant in fact had taken the view from the first meeting that dismissal was inevitable. At the second meeting he was given details of the grievance procedure and told that he could appeal under the grievance procedure. He did not do it because he took it that his employment had now ended and there would be no point in appealing."
"13. The majority view of the Tribunal is that the respondent acted unfairly in deciding to dismiss the applicant for this reason. In their view, the scoring system that was used by the respondent was more appropriate for the shop-floor rather than someone in an office position and a fair employer would not have applied such a scoring system in this context. The categories used and weightings applied were not sufficiently flexible to match the situation of the applicant, particularly as they did not take account of the fact that he had made the highest savings in purchasing of all of the buyers in the last year. A fair employer would have given the applicant credit for that.
14. Secondly, they consider that the assessment system was flawed because two of the categories substantially cover the same behaviour. The categories of "flexibility/co-operation" and "team contribution" cover the same areas, as is shown by the fact that both the applicant and Mr Wright were the people marked down for those two categories. A fair employer would not have had two categories which overlapped to that extent. They further consider that it is not feasible for a fair employer to have given all the buyers the same marking for "quality and quantity of work", bearing in mind the lengthy experience of the applicant and the much shorter experience with the respondent of Mrs Tuke and Mrs Lawley. They believe that that is also inconsistent with the marking given for "effective use of time to achieve results", whereby both female buyers scored less. In the majority view, if their quality and quantity of work was the same as the applicant, then they must have been expected to get the same score for effective use of time to achieve results.
15. The majority further take the view that the decision was unfair because too short a consultation period was permitted. A gap of Monday to Friday from the initial discussion to the final discussion was in their view too short for the applicant to properly respond. This was particularly so where he did not have the independent advice of a trade union.
16. The Chairman, who finds himself in the minority, would have found that the respondent did not act unfairly. In particular, the minority considers it is important for the Tribunal not to substitute its own views for that of the employer, but to consider whether the employer acted fairly or not. The points system for redundancy selection had been used on many occasions without any challenge. Both the categories and weightings are not out of the ordinary from standards applied generally across industry and, in the absence of specific objection to it, the respondent did not act unfairly in following its standard procedure. In terms of the selection, Mr Hubber in the particular circumstances was the only person qualified to make the assessment and there is nothing to suggest that he took into account any factors which he should not have done. His scoring was what he believed to be right, whether or not he got it right. Although the applicant took the view that he had been dismissed at the original meeting, he was not right in that and could have raised objection to the assessment had he wished. He was given sufficient information to do so, but raised no issue of objection, which would have caused a reasonable employer to re-assess the situation. The applicant's scoring would have had to have been wrong in at least two categories to have raised him above the person getting the next lowest score. The minority therefore takes the view that the decision to dismiss the applicant was not unfair. However, as the majority decision was that the dismissal was unfair, we went on to consider remedy.
17. The applicant did not wish us to consider reinstatement or re-engagement and we looked at the calculation of the losses he has suffered. As the dismissal was a redundancy dismissal and he has been paid his redundancy payment, no question of a basic award arises. The applicant was paid 12 weeks in lieu of employment and we accept his evidence that, at his age, his prospects are not good, particularly so as he is looking for a buying position in engineering, which we know form our experience would be difficult to achieve. The applicant is contemplating re-training, which is likely to take him some significant length of time. Even at the end of that re-training, his job prospects at the level that he was on previously must still remain poor. We think the appropriate period to take to consider his loss would be a period of one year. The applicant's net monthly pay was £937. In addition, he paid voluntary pension payments of £50 a month and had 5% of his pay stopped for his pension contribution. That amounts to £66 a month. The net value, therefore, of his employment with the respondent was £1,053 a month, which equates to £243 a week.
14. The award we make to the applicant is therefore as follows:
3 weeks' loss of pay to date of Tribunal from end of notice @ £243 per week= £729.00
Future loss of earnings for one year – 52 weeks @ £243 a week= £12,636.00
Loss of employment rights = £200.00
Total: £13,565.00
The Tribunal award the maximum permitted, £12,000. The Recoupment Regulations do not apply."
(1) the minority conclusion of the chairman, that neither the selection process itself, nor its actual application in selecting Mr Watson provisionally for redundancy, had been shown to be unfair in terms of section 98(4) was in our judgment the correct one on the "range of responses" test; but
(2) conversely, the material before us fails to establish to our satisfaction (by that test) that there was in truth an adequate process of consultation here, or any attempt at joint consideration of possible alternatives to the immediate dismissal of Mr Watson.