Labour Court rejects Quinnsworth union claim for goodwill payment

In 1997, the Labour Court recommended that Quinnsworth not concede a union claim for a goodwill payment to employees after the sale of Power Supermarkets Limited to Tesco Plc. The Mandate Services Industrial Professional Technical Union argued employees had helped create the value reflected in the sale and pointed to a £450 million goodwill valuation. The company said the transaction transferred shares, left Power Supermarkets Limited as the employer and brought no payment to it for the shares. The Court said no agreement or contract entitled employees to a share and that the cited precedents concerned different circumstances. Its recommendation was dated 29 July 1997.