The financial controller of the Irish Times was told "out of the blue" he would have to leave the company because it intended to headhunt a new chief financial officer (CFO), the High Court was told yesterday.
Mr Paul Gallagher SC, for Mr Richard Gee, said Mr Gee had worked with the company since 1982 and had received no complaint about his work before he was called to the office of the managing director, Mr Nick Chapman, in April, where he was told his role no longer existed and he didn't have the experience to fulfil the role of CFO.
Mr Gee's claim was simple, counsel said. It was that the Irish Times operated a trust and a "very enlightened policy of treating employees". There had been no forced redundancies for 30 years, and Mr Chapman's action was a violation of this policy. Mr Gee was not in a trade union but the policy of no compulsory redundancy applied to all employees.
Mr Gallagher also argued that there was no redundancy because Mr Gee was performing, with no adverse consequences for the defendants, the functions stated to be required of the proposed CFO. He said a former managing director of the Irish Times, Mr Louis O'Neill, had said in an affidavit that he always had the highest regard for Mr Gee and that the Irish Times operated a policy of no forced redundancies which applied to all employees. Mr O'Neill had said people were redeployed or moved sideways.
Mr Gallagher was opening an application by Mr Gee (56), married with two children, for an interlocutory injunction - an order to apply pending the outcome of a full hearing of legal proceedings taken by Mr Gee - restraining his dismissal from the post of financial controller and preventing the appointment of any other person to that post or any similar post. The action is against The Irish Times Ltd and Irish Times Publications Ltd.
Mr Gallagher read extensive affidavits from Mr Gee and Mr Chapman. There were also affidavits for Mr Gee from Mr Louis O'Neill and, for the defendants, from Mr Alex Burns of KPMG.
In his affidavits, Mr Gee said he was visibly shocked when told he would have to leave. He said Mr Chapman told him there had been a leak and he had not intended to tell Mr Gee until a new CFO was appointed.
Mr Gee said he had asked about the possibility of another position, but Mr Chapman had said it was his view that it was more humane to let people go rather than put them into jobs for which they were not suited. He said Mr Chapman had made it clear he had no future with the company.
He was later formally told his appointment was being terminated because of redundancy and was given 12 months' notice but would have to work only three months. He agreed Mr Chapman had also said there would be a generous severance package.
Mr Gee denied the proposed position of CFO was beyond his capabilities. He said Mr Chapman was unaware of his involvement in strategic planning and other areas and had never given him any opportunity to demonstrate his capabilities. He was being discriminated against on grounds of age, and Mr Chapman's arguments were an "elaborate subterfuge" to get rid of him and employ a younger person.
Mr Gee said his overall package of salary and other benefits was £153,000 a year. It was his only source of income.
In replying affidavits, Mr Chapman said he was appointed managing director of the Irish Times last October. He outlined his career experience, including as a BBC executive, and said he had experience of lots of change, restructuring and reorganisation.
He said Mr Gee could not but have been aware that senior management positions in the Irish Times were being assessed to prepare for the competitive and technological challenges ahead.
While Mr Gee performed his accounting and other functions adequately, he had reached the "ceiling of his competences".
He said the role of CFO was very different from that of financial controller, which was a "narrow role". When Mr Gee had looked for another role in the company he had told him it would be unfair to raise false hopes. He had evaluated Mr Gee's performance for six months, and misgivings about Mr Gee's ability had previously been expressed by others, including in a memorandum by Mr O'Neill.
Mr Chapman said the Irish Times chairman, Mr Don Reid, had agreed that no staff members, including Mr Gee, could meet the requirements for the CFO position.
Mr Chapman said he had spoken to Mr Reid and others in the company and was advised there was not and never had been a policy of no forced redundancies. This would be contrary to the interests of the company. Mr Gee had no promise that he would always have a job. Mr Gee was not suitable for the CFO post, and there was no option but to make him redundant.
Mr Chapman disputed that Mr Gee's package had a value of £153,000 annually. Mr Gee had exhibited confidential company information in his affidavits.
Mr Gallagher said this information was exhibited to demonstrate that Mr Gee was involved in strategic planning within the company, and his side had undertaken not to read it in court and had behaved responsibly.
In his affidavit, Mr Alex Burns of KPMG, who is in charge of the Irish Times audit, said he had advised Mr Chapman that there had been a lack of strategic leadership in the financial functioning of the group and he was very pleased to hear there would be a CFO.
The hearing continues today before Mr Justice McCracken.
