Unite members to challenge First Group over pay freeze and strike tricks at AGM

14th July 2009

WHERE: Aberdeen Exhibition & Conference Centre, Bridge of Don, AB23 8BL
WHEN: Thursday, 16th July 2009 at 10:30am

Hundreds of Unite members will demonstrate at the First Group AGM this week (Thursday, 16th) in Aberdeen over the 0 per cent pay freeze imposed by the board in all of its UK bus subsidiaries, and to highlight the tricks the company are deploying to get around a strike.

Unite’s 20,000 members who work for First Group are incensed with the 'zero per cent pay policy', which means no pay rise this year even though the company has been making huge profits for years. First Group PLC made £200m profit before tax in March 2009.

Unite says that a profitable company cannot use the recession to make its employees pay for further rises in dividend payments for its shareholders, but with the company seeking to impose the freeze, it looks set to be embroiled in a series of rolling strikes across the country.

The protest comes on the same day as nearly 500 of First's bus drivers in Aberdeen, the company's international headquarters, take strike action as shareholders make their way to the city.

However, First has sent instructions to all local bus subsidiaries that they should supply a quota from their management teams to travel to Aberdeen to work on the strike day.  Unite says the aim is to make it look like some sort of bus service is running on the day of the AGM, tricking shareholders into thinking that the strike has been broken.

According to Unite, First is looking to get 50 managers to fly to Aberdeen today (Tuesday), where they will be put up in local hotels. Tomorrow (Wednesday) they will be ferried around Aberdeen in cars to learn the local routes and on Thursday, First are to try to provide a free bus service to the public from 7am until 7pm. The managers will then fly back to their homes on Friday.

An astonished Unite regional official in Aberdeen, Tommy Campbell, told the company that: “Given First Group’s huge operating profits of 38 per cent, and the incredible expense of trying to break this strike, a rise of 4 per cent on staff pay is not an unaffordable pay settlement. We are available to talk at anytime.”

Unite national organiser for passenger transport, Graham Stevenson, says that workers from all over the UK are mobilising to join their colleagues in Aberdeen at the protest: “No doubt the achievement of a 'Zero Pay Policy' on bus workers’ pay will add up to a tidy sum in management bonuses.

“We thought the era of fat-cats and boardroom bonuses was supposed to be over, clearly not.
 
“Bus workers' pay has dropped massively since deregulation and privatisation. Remorselessly, for over a decade, this decline continued. Yet, we see the board of First is proposing to the AGM a shareholder dividend rise of 10 per cent. This is now the fifth consecutive year that First has increased dividends by 10 per cent. It's clearly ‘10 per cent for them, nothing for us’.

“The board has decided that a recession means that bus workers no long need to have pay increases, especially if this interferes with their ability to ensure that shareholders get what they think should be coming to them.  Quite simply, we ask them to think again.”

Unite is calling for the implementation of a just wages system to raise bus workers’ earnings, re-establish status to recognise responsibility and skills and reflect the growing demands of the job.

At the AGM protest, Unite members will carry placards emblazoned with images of a `fat-cat’.

ENDS

For more information contact Graham Stevenson on 020 7611 2583 or Graham.Stevenson@uniontheunion.com or Ashraf Choudhury in the Unite press office on 020 7420 8914 or 07980 224761.


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