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Travel JV: Proposed Changes to Terms & Conditions
During extensive consultations between NACO and Thomas Cook, were advised that in the current economic climate, maintaining different terms and conditions for staff will be problematic both in administration and costs.
Where we can help determine longevity and growth within the joint venture, in an industry that can be a turbulent one at times, we want to support the business to avoid cost inefficiencies where possible.
Thomas Cook undertook a detailed review to identify how they can progress the future of the joint venture successfully. Part of those consultations centred round payroll costs - both the administration, which has a substantial cost, and the staff wages.
Due to the exceptional circumstances, and following intensive examination of the costs, NACO agreed to ballot members with a proposal to align Co-operative Travel terms and conditions with those of Thomas Cook – If accepted the proposed terms and conditions would become new contracted terms.
Headline proposals for Co-operative Travel staff were:
- A mixed balance of increases and reductions.
- The annual holiday entitlement maintained under the current policy, which is regarded as a positive outcome in this review.
- A standard set of terms and conditions to encourage flexibility across the business.
- Implemention would reduce the requirement to incur costs related to additional payroll system development and processing.
- The management of multiple policies could present managers with a lot of complexity; particularly where colleagues transfer across brands in the Retail Network.
NACO is able to announce the result of the ballot of members in scope to the Joint Venture (Travel & Financial Services Ltd) on the proposed changes to their terms and conditions of employment.
The Ballot has resulted in a rejection of the offer as detailed in the communication to members on 27th March 2012.
The ballot result is detailed below:
The turnout for the ballot was 35.5 %.
NACO will now seek further consultation with Thomas Cook on this matter and return to members in due course. Our next meeting is scheduled for Monday 23rd April.