MOD and Unite the Union (Amicus Section) settle information and consultation claims

30 July 2008

1.         MOD have agreed to settle with Unite the Union (Amicus Section) the Information and Consultation claims which were based on the alleged failure to inform and consult in relation to the cessation or diminution in work carried out at  DSG (ex DARA) St Athan.

2.         Full and final settlement was achieved after extensive and detailed negotiations. The value of the settlement is in the region of £5M. Each of the affected employees will receive £3K.

3.         MOD and Unite are now finalising administration and distribution arrangements.

Bryan Godsell, Unite the Union, Regional Officer said: ”This settlement graphically demonstrates the value and importance of being a member of Unite the Union. We are delighted that this claim has finally been settled through negotiation. Despite the complexity and sensitivity of the claim the negotiations between Unite the Union and the MoD have been conducted in a positive and pragmatic manner over a 2 year period resulting in a fantastic settlement for Unite the Union and all the affected employees.

The settlement finally draws a line under the issues resulting from the proposals to transfer Fast Jet servicing from St Athan to Main Operating Bases during the period from 2004 to 2007. This settlement goes a long way to overcoming the disappointment felt by employees at St Athan over the way in which they feel the transfer of work was handled.

Our members at DSG St Athan can now focus on the future and the challenge of securing work beyond the current VC10 servicing programme.

I would like to pay tribute to Gavin Toker Unite Convenor at DSG St Athan (Formerly DARA St Athan) for his perseverance in pursuing this matter in the first instance which resulted in the claim being raised by Unite the Union and for his professionalism and support throughout the negotiation.

I would also like to pay tribute to Neil Johnson and our team of Legal Advisors at Rowley Ashworth Solicitors whose expert advice and guidance throughout the negotiation assisted in bringing this claim to a successful conclusion”.

For Further Information Contact:
Bryan Godsell, Unite Regional Officer
Office – 01792 470434
Mobile – 07958 515333
E Mail: bryan.godsell@unitetheunion.org

JOINT COMMUNIQUÉ – MOD AND UNITE SETTLE TUPE CLAIMSQUESTIONS AND ANSWERS MATERIAL

Question 1 – Why did the parties agree to settle this claim?     

Both parties recognise the inherent risks, costs and disruption associated with proceeding with a protracted legal process that has already run since July 2006. The settlement draws this matter to a mutually satisfactory conclusion in the most cost effective manner.

Question 2 – Who are the beneficiaries of this settlement?

Employees or former employees who were permanently based at DARA St Athan at any time between 15 August 2004 and 31 March 2007. For the avoidance of doubt this definition excludes employees based at DARA St Athan over this period who: worked temporarily for any length of time over this period at DARA St Athan; or were not employed in grades for which Unite (Amicus Section) had representational rights; or were not included in any of the redundancy exercises undertaken at DARA St Athan

Question 3 – Why has the date of 15 Aug 04 been used to determine who will receive the settlement payment.

This date of 15 Aug 2004 is three months prior to the date when the Harrier (Jump Gate 2) contract was awarded to BAE Systems. This date has been selected because it is the first date at which MOD could reasonably have been expected to inform and consult on the possible application of TUPE.

Question 4 – Why was £3K chosen as the settlement value?

The £3K value is a compromise position that has been reached between the parties that was judged to be a fair and equitable outcome to all affected employees.

Question 5 – Why is everyone receiving the £3K settlement rather than the maximum 13 weeks compensation?

The value of the settlement represents a compromise position and is the result of protracted negotiations included high level legal opinion being sought independently by the parties. The parties are satisfied that the value of the settlement represents the most equitable outcome available in the circumstances.

Question 6 – On the basis that these claims were only submitted by Unite (Amicus Section), why are all those employees set out in answer to Question 2 above receiving compensation?

Amicus has confirmed that it was recognised, for consultation purposes, in respect of all these employees. Therefore they all, potentially, fell within the scope of the claim. 

Question 7 – When will I receive my compensation?

The parties are currently finalising the administration and distribution arrangements. Given the scale of the settlement and the numbers of employees and ex employees involved, it is hoped that payments will be made in the next 3 to 4 months.

Question 8 - Will the settlement payments be taxable?

The parties have taken legal advice and understand that this is a Protective Award and is therefore not taxable. However, the final position on tax will not be known until HMRC provide a ruling.

Question 9 – Do the parties expect any further costs or claims associated with this settlement?

No – This settlement represents full and final settlement of the claims.

Question 10 – At what point did the parties become aware of the potential breach of employment legislation?

Unite (Amicus Section) formally raised this matter with the Minister in March 2006, MOD instigated an investigation and the advice from MOD legal advisor was that TUPE may have applied to elements of the work that had transferred.