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Seven-way split for British Road Services Ltd

23rd June 1972, Page 20
23rd June 1972
Page 20
Page 22
Page 20, 23rd June 1972 — Seven-way split for British Road Services Ltd
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Which of the following most accurately describes the problem?

Delegation of power to new companies in a move towards more specialized services

Managing directors of six of the new regional companies are as follows (the Scottish BRS m.d. has yet to be appointed): (1) Mr J. D. Mather, Southern BRS Ltd. Is presently assistant m.d. of BRSL, having joined the company in 1968 from Convoys Ltd. (2) Mr R.

G. Fortune, North Eastern BRS Ltd. Now manager of South East district, having joined via Pickfords heavy haulage in 1953. (3) Mr D.

H. White, Eastern BRS Ltd. Is East Midlands district manager, having joined BRSL in 1970 after service with oil companies and as assistant m.d. of Samuel Williams and Sons. (4) Mr R. W. Irons, Western BRS Ltd. Now BRSL South West manager, is ex-BRS cadet who joined through BRS Parcels in 1949. (5) Mr W. E. Bates, North Western BRS Ltd. Currently NW district manager, he joined the company in 1949 as Bolton/Bury group manager. (6) Mr K. H. H. Cook, Midlands BRS Ltd. Is S. Midlands district manager, having joined BRS in 1969. Was peacetime Wing Commander in RAF after wartime pathfinder service.

• Six months after becoming group co-ordinator of British Road Services Ltd, Mr Peter Thompson has decided to disband the group's 11 Districts and replace them with seven independent regional companies, each with its own managing director and a small supporting board. Existing branches will be allocated among the new companies (see panel opposite).

When the change is made, on September 1 this year, each company will start life with about Om capital, rim turnover and a fleet of around 1300 vehicles, Each new company will be responsible for "all the present and proposed activities within its regional boundaries" — activities which will be concentrated on the expansion of the contracts, distribution and warehousing sides of the business at the expense of general haulage.

BRS (Contracts) Ltd will no longer exist as an operating company — its role being assumed by the new regional companies as part of their multi-purpose activities — but it will continue as a company for holding contracts and invoicing customers.

H. and G.S. Bell Ltd (a vehicle leasing company) will be absorbed into BRS Scotland, but Cartransport (BRS) Ltd and Morton's (BRS) Ltd will remain independent specialist companies in the Midlands. These will be the only independent operating companies in the new BRSL group, since the development of European traffic will be the responsibility of a director of Continental operations (Mr S. Knowles — at present East Anglia district manager) within the new Southern BRS.

Also within Southern BRS will be a director, responsible for contracts (Mr W. Farrall, present London district contracts manager), while within Midlands BRS will be a director for motor industry liaison — Mr F. Collins.

To give the seven new managing directors a say in group policy, and also to encourage firm commitment to that policy, they will be members of anew group policy committee — replacing the executive board that has hitherto run the group.

They will be joined on the policy committee by three headquarters officers — the group financial controller, Mr J. K. Watson, the group services controller, Mr R. V. Cole, and the group co-ordinator, Mr Peter Thompson, who will chair the corn mittee.

Since one of the aims of the reorganization is to pare down overheads above branch level, currently running at £485 per vehicle, the headquarters staff at Northway House, Whetstone, is to be cut. But senior officers in four fields will be based at hq — head of marketing, Mr K. P. H. Fielding; head of contracts, to be appointed; head of personnel, Mr G. F. Mee, and engineering adviser, Mr W. V. Batstone, who will also have a National Freight Corporation engineering role in support of Mr George Cardwell.

Headquarters will retain a strong central marketing team to sell distribution, contract and other services to national companies, but the managing director ; of the seven new operating companies will be fully responsible for the activities and profitability of their own companies.

Although the new policy committee will meet monthly, compared with the twice or thrice yearly meetings of the present district managers, there will be a framework for immediate decisions involving the operating companies: each company m.d. plus the group finance and group services controllers will form an executive committee for that company, reporting direct to the group policy committee.

The reorganization plans were announced to the NFC's national staff council on Monday by Peter Thompson, The council noted that the changes did not affect operating or workshop grades of staff, and it was agreed to refer the effect and implementation of the proposals to the BRSL consultative joint committee for the supervisory and other white-collar staffs.

On Tuesday the national secretary of the TGWU's white-collar section, Mr G. Henderson, accused BRSL of attempting to bludgeon the reorganization through with indecent haste. In a letter to the NFC personnel officer, he alleged that BRSL management had lied to the unions about the approval given to the proposals by the staff council. The hasty action of BRSL had, he said, led to the union being inundated with inquiries from worried employees.