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Boots transfer warning

5th June 1997, Page 11
5th June 1997
Page 11
Page 11, 5th June 1997 — Boots transfer warning
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• A shake-up of Boots distribution contracts in Nottingham has implications for drivers' redundancy payments, warns the Transport and General Workers Union.

The wrangle centres on highstreet retailer Boots decision to hand most of its local delivery work to Ilkeston haulier William West & Son. The move meant that other firms such as Nottingham-based Clearway Distribution and big names such as Exel Logistics and TDG subsidiary Stirland have lost out. Other winners from the reshuffle included Bibby Distribution.

All the employers agree that the situation comes under Transfer of Undertakings rules. But one area of conflict concerns redundancy payments. TGWU members at Exel Logistics, some of whom have 20 or 30 years' service at parent NEC, would have received sizeable redundancy packages if they had stayed with the company. The TGWU says these are at risk because of the change of contract.

"We are seeking to maintain redundancy payments on behalf of our members who do not want to transfer," says TGWU regional officer Alan Tiplady.

The Court of Appeal ruled in April that employees are not guaranteed old terms and conditions if their work is taken on by another contractor.

Boots made the sweeping changes to the contracts in April following a review of its regional distribution arrangements.