Engineering firm manager secures €185k after being unfairly dismissed

A SENIOR manager of a Co Clare engineering firm has secured a €185,000 compensation payout after the Employment Appeals Tribunal ruled that he was unfairly sacked from his job by the firm’s US parent company.

Seamus O’Callaghan was the general manager of Melcut Cutting Tools of Shannon, Co Clare — a company which manufactures and designs speciality cutting tools — when he was made redundant in April 2009.

Mr O’Callaghan had held that position since joining the firm in October 2007 and continued in that role after Melcut was bought out by its current US owners.

The EAT heard that Mr O’Callaghan of Oakfield, Fr Russell Road, Raheen, Limerick had even devised a cost-cutting plan which had seen management at Melcut take a 20% pay cut.

Mr O’Callaghan gave evidence that he had travelled to the company’s headquarters in Ohio in the US with the expectation of meeting Melcut’s directors to discuss his position but such a meeting never took place.

Instead he was informed on his return to Ireland a few days later that he was being issued with a termination agreement and was asked “to make it as amicable as possible”.

Mr O’Callaghan insisted that his performance had never been questioned during his time working with the company.

The EAT heard that Mr O’Callaghan had been unable to find another job since leaving Melcut.

The EAT ruled the termination occurred in circumstances where no objective or compelling justification was offered. It said claims by Melcut that Mr O’Callaghan was simply fired because of the firm’s poor financial performance could not be justified.