Telecommunications provider MCI WorldCom has been severely criticised by the Communications Workers' Union (CWU) for refusing to negotiate on the compulsory transfer of 17 staff to another company.

The CWU says that 16 of the staff to be transferred to Ericsson as part of a move to outsource certain functions are members of the union.

MCI, however, has refused to meet the CWU about the matter, telling it in a letter this week that "MCI WorldCom (Ireland) Ltd does not recognise trade unions".

CWU head of legal affairs Michael Bride claimed the company was in breach of EU law governing the transfer of businesses in its refusal to meet the union.

The CWU has referred the matter to the rights commissioners' service of the Labour Relations Commission. Labour MEP Proinsias De Rossa has raised it with the European Commission.

In a statement to The Irish Times, MCI said that it consulted with the staff affected on a regular basis through an elected employee consultation body.

"MCI is very aware of its legal and contractual obligations to all the affected employees and intends at all times to honour these obligations," it said.

MCI said it had been looking to outsource some operations as part of an ongoing evaluation of operations. This had resulted in MCI recently signing a memorandum of understanding "with a third party with a view to considering the feasibility of outsourcing certain operational activities".