A plant hire manager has alleged he was ordered to sign off on “inflated” machinery hire prices as part of an alleged “price-fixing” arrangement – and suffered demotion for raising concerns about it with his bosses.
Declan Culliton is pursuing a complaint under the Protected Disclosures Act 2014 against HSS Hire Ireland Ltd, where he remains an employee.
At the Workplace Relations Commission on Friday, a barrister acting for Mr Culliton said his client had a reasonable belief that there was “unlawful or illegal activity” afoot in the form of anticompetitive trade practices and breaches of the legal duties of a company director, and was penalised for raising his concerns.
Jason Murray, for Mr Culliton, said his client’s employer, the Irish arm of the UK-based HSS group, had bought another plant hire firm, Laois Hire, in 2006.
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The founder of Laois Hire, Michael Killeen remained on as its managing director following its sale to HSS, but also became managing director of HSS Hire Ireland Ltd, the complainant has alleged. HSS says Mr Killeen was in a “transitional role only”.
Mr Culliton’s case is that at a meeting in July 2022, two senior managers at Laois Hire told him to “increase pricing” on machinery being rented from Laois Hire by HSS to supply to the latter’s customers. When his client questioned the instruction, he was told it had “come from Mr Killeen”, Mr Murray added.
He submitted that the price increases were implemented in spite of his client’s opposition and “resulted in an inflated-price supply of cross-hire goods from Laois Hire Services to the respondent”.
Mr Murray said his client went on to raise a series of protected disclosures. He was subsequently isolated, ostracised and undermined at work, as well as being threatened with demotion and unilaterally removed from a senior position, it was submitted – claims denied by HSS.
Counsel said a company audit later showed “financial irregularities” to the detriment of HSS, and had resulted in a payment of “at least €525,000” being made from Laois Hire to HSS.
Kevin Bell, appearing for HSS, said Mr Culliton’s account of the July 2022 meeting was “absolutely in dispute” and that Mr Culliton “did not, could not, would not have the authority to authorise price increases”.
He said auditors sent by HSS’s parent firm made “no findings of price fixing or collusion with regards to Mr Killeen’s role” and that the €525,000 “was not a refund” for any overcharging.
Adjudicator Catherine Byrne
has adjourned the case.
