Labour Court says Penneys should consult union on contracting work

In 1992, the Labour Court found Penneys had not followed normal consultation practice with the Services Industrial Professional Technical Union when it contracted out file-moving work at its Mary Street branch. The Court also found the change did not affect the claimants' earnings or job security. The recommendation was signed on 1 April 1992. The Labour Court recommended that the union accept the current changes, on the understanding that the company would honour its commitment to consult about proposed future changes. The claim was brought on behalf of 11 storepersons, who said a contractor had taken over work that had been part of their normal duties for 16 years. Penneys said the task was minor and outsourcing it was more practical and efficient.