Info'P staff gear up for court showdown

More than 60 employees set to challenge Compel in European courts over redundancies.

Compel could face a legal battle with disgruntled ex-Info'Products staff in the wake of its takeover of the reseller.

The company made at least 150 people redundant last week, between 60 and 80 per cent of its workforce. Among those axed were senior employees, including Simon Steele, regional director for the City office and Brian Wathan, services delivery manager.

It is understood that more than 60 former Info'Products staff, led by ex-company secretary and legal adviser George Fodor, will challenge Compel under European law relating to the transfer of employees from an acquired company. If a company makes more than 100 people redundant, it is obliged by law to offer a 90-day consultation period to staff. Sources claimed employees were offered the minimum redundancy package with a 30-day consultation period and very low pay - in some cases as low as between #800 and #900. Fodor was not available for comment.

Most of the redundancies were made at the City office and were largely on the business support side. There were a number of casualties from desktop sales, although most of the company's Unix team will be retained to become part of Hamilton Rentals. Sources said the London office has shrunk from 18 to four staff.

Mark Howling, managing director at Compel, said most of the redundancies had been planned by Info'Products before the takeover. He claimed: 'The cuts are necessary to get the company back to financial health and we have been in consultation with the staff throughout.' He said he was unaware of the legal action.

Several channel sources accused Info'Products of handling the personnel changes badly. One claimed employees had been notified of the impending cuts by e-mail and that staff had been left unsure of their career futures over the Christmas period.