TGWU warns of depot tender trap
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• Plans to decentralise GoAhead Northern into five operating companies could lead to its individual depots undercutting each other for tenders, warns the Transport and General Workers' Union.
"There is too much competition in the area already without a company competing against itself," says Terry Hammond of the TGWU. He believes the North East bus operator's decision could lead to rate reductions in the area.
But Go-Ahead says the restructuring, which will be completed by the end of the year, will ensure each area is managed to reflect its individual requirements.
"It is our experience that the local bus business is a very local business," says commercial director Chris Moyes.
Its loss-making depot at Jarrow, and the High Spen depot, which was making marginal profits, will be closed at the end of this month. (CM 13-19 September 1990).
The remaining 11 depots will be split between operating areas North West Durham, Sunderland, Gateshead, North Tyneside and South Tyneside.
The TGWU is to hold pay and conditions talks with the individual companies, which are still to be named. It believes the re-structuring has dashed its hope of regaining companywide bargaining, together with employees voting to accept local deals last month, in a bid to save 360 threatened job cuts. (CM 31 May — 6 June 1990).