Deals to honour terms
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by Amanda Bradbury
• The cast of winning a new transport contract is set to soar from today as experts predict a landmark court case will set a precedent for employers to honour drivers' existing terms following a takeover.
Lawyers were this week forecasting that an Employment Appeals Tribunal set to end yesterday (April 28), would rule in favour of 12 refuse vehicle drivers, opening the floodgates for unions to file "thousands of similar claims".
Independent body Incomes Data Services says there is a "high possibility" that the case, if won, will set a precedent in all out-tendered local authority contract disputes.
The appeal involved 22 exEastbourne Council workers who lost their jobs when the council awarded its refuse collection work to Onyx.
Representing the men, Transport & General Workers Union national secretary for public setvices Jack Drotney says: "A handful of dustmen backed by their union have changed history— reluctant ministers are being dragged into the Europe of the '90s." Dromey says the case will help establish a firmer link between a firm's treatment of its employees and its ability to win new contracts.
If the drivers win, Onyx could be forced to pay as much as £10,000 per employee—though one of the other remedies would be to reinstate them.
Financial director John Kutner says a decision this week "could affect" future tenders, but would not alter terms and conditions for the rest of the existing workforce.
Speaking before the end of the hearing, the organisation which represents waste disposal companies, was "very pessimistic" of the likely outcome. But the National Association of Waste Disposal Contractors says it welcomes any clarification of contract transfer law.
If the TGWU does not win, it can bypass the Court of Appeal and House of Lords for a "fast track" appeal at the European Court of Justice.