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Court threat over Pilks deal

Mar 1 2006

By Tony Mcdonough, Business Week, Daily Post

 

UNION leaders are considering legal action against Pilkington, claiming the company failed to consult with its workers before agreeing to a £2.2bn takeover by Nippon Sheet Glass.

Yesterday, the St Helens-based firm confirmed that its directors had accepted the Japanese firm's offer of 165p a share after months of negotiations.

Early indications suggested there would be no threat to jobs at Pilkington's site in the town once the deal, which is subject to shareholder approval, went through.

St Helens North Labour MP Dave Watts and St Helens Council both gave a cautious welcome to the news, adding they hoped the Pilkington name would remain.

However, Ronnie Waugh from the GMB Union, which represents workers at the company, claimed workers had not been consulted.

Mr Waugh, who also sits on the union's national executive, told the Daily Post: "I asked a question in November about the impact of any takeover but they would not give me an answer, saying stock market rules meant they could not comment on it.

"We are very concerned that this deal has been agreed with zero consultation with the workers."

Mr Waugh said the GMB was considering taking the company to court, claiming it was legally obliged to consult with employees.

He believes any successful legal action could lead to workers receiving compensation.

Pilkington spokesman David Roycroft said last night there was still time for consultation as the deal was still to be approved by shareholders.

"There were obviously legal constraints under stock market rules over what we could say to people prior to the deal being announced," he said.

"However, we have no problem with consultation and of course we have already said we don't expect there to be any adverse impact on jobs." He also pointed out that union leaders were briefed about the deal early on Monday morning.

Nippon, whose NGF Europe subsidiary is also based in St Helens, already owns 19.7% of Pilkington.

Pilkington employs about 24,000 people and has plants in Birmingham and Doncaster, while its sales and distribution operations span more than 130 countries.

 

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