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TDG drivers in row over pension rights

22nd December 2005
Page 10
Page 10, 22nd December 2005 — TDG drivers in row over pension rights
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Pensions seem an eternal problem in the fuel distribution sector, so it's no surprise that TDG has fallen foul of the issue. Guy Sheppard reports.

LOGISTICS GROUPTDG is facing a row over pension rights after winning a contract to deliver fuel to Tesco outlets throughout the UK.

The Transport & General Workers Union claims the company is refusing to accept its obligations under TUPE, the regulations that protect workers' terms and conditions when contracts change hands.

Ron Webb, the T&Ci's national secretary for road transport. says 170 drivers are affected by the change in contract which would remove their entitlement to a final-salary pension. " What's goi ng on is almost criminal," he adds. "We've been unable to obtain information about when the contract starts and they're blocking any attempt to meet their consultation obligations."

The row comes as union leaders appear to be making progress in setting up an industry-wide 'portable' pension for when contracts change hands (CM 13 October).

Webb warns that ifTDG's terms are accepted other contractors will face increased pressure to cut costs:-It will come back and attack our terms and conditions." A spokesperson for TDG says: "We're in consultation with employees and are unable to make any further comment at this time."

The contract is currently handled by Wincanton.Webb says this will be TDG's first major foothold in the sector.

Meanwhile, oil tanker drivers employed by Wincanton on its contract with Texaco are being recommended to accept a pay offer that boosts their guaranteed daily pay from 185 to £125.

The offer is backdated to January and covers next year as well. It was negotiated in response to the Working Time Directive and is thought to be worth around 18% once reduced working hours and other changes have been taken into account.

• TDG has warned that profits next year will be "materially below those in 2005".

Chief executive Dave Garman says profits for the year ending December 2005 will he in line with expectations, but next year's will be hit by fewer contract wins thanks to rationalisation within the retail sector.


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