The case, Adams v CBA, involves 500 ex-employees of the Commonwealth Bank (CBA) who were transferred to EDS in 1997 when an IT outsourcing contract was signed between the two companies. The Financial Sector Union (FSU) is claiming that the CBA contravened its legal obligations under the Commonwealth Bank Officers Award by not offering severance pay.
"[The employees in this case] resigned from the CBA and took up employment at EDS," John Hendry from legal firm Geoffrey Edwards and Co told ZDNet Australia. "The bank's actions were such that they were made redundant."
The case had been on suspension following the outcome of another case between the FSU and the CBA, where IT staff had allegedly refused to resign but were seconded to EDS anyway. This was originally awarded in favour of the union but was later overturned on appeal.
The Commonwealth Bank has declined to comment.
"As this case is still to come before the Courts, it is not appropriate that the Bank comment on the merits of the case or otherwise," said Bryan Fitzgerald, executive manager of corporate communications at the CBA.
The case should be heard early next year.
CBA - Complete Bastards Always
EDS - Every Deal Stinks
Any wonder it has ended in court :-)
Whatever the outcome, companies country-wide need to wake up and realise that any outsourcnig (or 'transfer') of staff should be done with the best interests of the staff and the company in mind.
Shareholders need to clamour for more than just increased value for their shares.