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Commencement of the Period for Appeal and Awaiting Advice from the Works Council

Sections 25 and 26 of the WOR

Pursuant to Section 25 of the WOR, the Works Council of an enterprise is given the opportunity to advise about each projected decision that concerns the topics of which a comprehensive list is given in that Section. If the decision does not conform to the advice or if new facts and circumstances have become known which could have influenced the advice, or if the advice is not followed (in part), the Works Council may appeal against the entrepreneur's decision to the Enterprise Section of the Court pursuant to Section 26 of the WOR.

The Facts

APM Terminals ("APM") engages in the terminal handling in the port of Rotterdam. It has its own employees, but hires external operators. APM and its Works Council have agreed that when more than 10 persons are contracted by APM as a group, this is a matter that requires the advice of the Works Council.

In October 2006 APM submitted a request for advice to the Works Council for the secondment of 100 to 120 operators through three outsourcing companies: SHB, ILS and Matrans. In December 2006 APM asked the advice of the Works Council about the extension of the contract with SHB. The Works Council notified APM in a letter of 15 February 2007 that its advice about the secondment of the 100 to 120 operators was negative. APM stated that it would take the decision anyhow.

On 12 June 2007 APM stated at the consultative meeting with the Works Council that the negotiations about the extension of the contract with SHB were still going on. APM asked the Works Council to put its wishes and objections down in writing. On 12 July 2007, however, it appeared at a meeting between APM and the Works Council that the contract had already been signed. The Works Council was of the view that the request for advice had not been completed yet and that APM had wrongly failed to await the Works Council's advice. Therefore the Works Council appealed to the Enterprise Section. APM took the position that the Works Council had combined both requests for advice in the negative advice of 15 February 2007, and that there were no two separate requests for advice. Since the decision had already been taken, APM was also of the view that the period for appeal had lapsed.

The Enterprise Section

The Enterprise Section followed established case law in order to determine the commencement of the period for appeal pursuant to Section 26(2) of the WOR. As a result, the day of the written notification that a decision has been taken is decisive. The decision about the extension of the contract with SHB was only known to the Works Council since the meeting of 12 July 2007. It cannot be understood that the Works Council was already aware, or could have been aware, of the decision-making. Therefore the period for appeal has not commenced any earlier than at that time. The Enterprise Section further held that there has been no misunderstanding that there were two separate requests for advice, even if there was a close coherence between the two in several respects. If the decision regarding which advice was sought in December 2006 had already actually been taken, then the advice of the Works Council had not been awaited. For that reason alone, the decision is manifestly unreasonable, because the co-governance rights safeguarded by law have been violated. In the case at issue there are no reasons to deviate from that starting point. Therefore the decision has to be withdrawn, and the consequences of the decision have to be undone.

Tips

  • If an enterprise asks the advice of the Works Council about several (projected) decisions between which there is a close connection, in principle there are separate decisions. It is important that both during the request for advice and during the advice of the Works Council there is clarity about the question of whether the coherence between the projected decisions is such that the request for advice and/or the advice regarding these decisions can be combined.
  • If the request for advice and/or the advice are not combined, the advice regarding each decision must be awaited separately. If the advice of the Works Council is not awaited in that case, the result will be that the decision is manifestly unreasonable.
  • It may also be important in connection with the period for appeal whether or not requests for advice are combined. The period for appeal starts at the moment when the decision is notified to the Works Council in writing. This is established case law that is not deviated from in the case at issue. Thus, it is also important with regard to the period for appeal that there is clarity about the question of whether there is one decision or whether there are two separate decisions.
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Simon van IJsendoorn

Tel +31 20 5506 859
E-mail: simon.van.ijsendoorn@kvdl.nl

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