The works council of Dutch ISP XS4ALL has lost its court case against parent company KPN's plans to fold the brand into the wider group. The Enterprise Chamber at the Amsterdam court rejected the works council's request to start an investigation into possible mismanagement at KPN and name an interim director for XS4ALL. This means KPN can go ahead with the restructuring plan.
The works council earlier voted against KPN's plan to integrate XS4ALL in the group and discontinue the brand. This is part of a broader plan at KPN to consolidate its multiple brands and bring their best qualities to the main KPN name. KPN rejected the XS4ALL works council's opinion and said it would go ahead anyway with the restructuring anyway, prompting the council to file the lawsuit.
The XS4ALL works council argued the unit had a unique position on the market, as a high-quality service provider, and a history of operating independently. KPN had not weighed the consequences for the company versus the group sufficiently and did not have a sound business case for the restructuring, the labour representatives claimed.
The court found that KPN informed the works council sufficiently, including help to finance additional expert advice and motivation for its plans. The position of XS4ALL was recognised and taken into account in the proposals, and the court found KPN's business case sufficient. Alternatives were also investigated and discussed. Furthermore, KPN's plans have no major consequences for employment, with no forced redundancies planned.
After around 20 years as part of KPN and yet still operating relatively independently, it was not unusual that there would be some tension between XS4ALL and the management, the court found. Prior to the ruling, KPN CEO Joost Farwerck expressed a similar sentiment in an interview with De Telegraaf. He said it should be logical for the company to discuss synergies with XS4ALL and it was that the unit still operated separately more than 20 years after its acquisition by KPN. The CEO said he would consider it a loss no matter what the court said, as the company still needs to sit down with staff and discuss how to work together, almost a year after the plans were first announced.
