Contract tribunal set up
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ty Patric Cunnane • The long-awaited showdown between Wincanton and Tankfreight, to decide who is responsible for 200 drivers formerly employed by Tankfreight on the £75m/five-year Texaco contract, takes place during a 12-day industrial tribunal starting on 18 February next year.
NFC company Tankfreight lost the Texaco business — believed to be the UK's largest haulage contract — to Wincanton last year. Since then Tankfreight has insisted that the Transfer of Undertakings Regulations 1987 apply. This makes Wincanton responsible for redundancy payments to drivers it did not employ and for continuous employment on NFC terms, including pensions, to drivers who transferred with the work.
The Transport and General Workers Union believes up to £2.5m of redundancy payments may be at stake.
NFC and the TGWU lawyers will tell the tribunal that the Tankfreight drivers are entitled to continuous terms and conditions paid for by Wincanton.
The hearing had been set for last month but was postponed to allow further evidence to be assembled. "The result will have a fundamental effect on people's attitude towards tendering for contracts," says Wincanton. The Transfer Regulations have usu ally been invoked only when a business and assets are sold.
NFC has two other hearings outstanding. It is pressing United Transport Tankers to accept responsibility for 35 drivers affected when Tankfreight surrendered an Esso Industrial Fuels contract, but BRS Automotive is putting pressure on Walon, to which it lost a 40,000car contract.