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London Underground - TfL TUPE Newsletter

28 June 2011

Latest news and views on the present TUPE transfer of staff from LUL to TfL

  LUL - TfL TUPE Newsletter June 11


TfL funding cut

Following the outcome of the Government’s spending review in 2010, the Transport Commissioner set up a steering committee in TfL and the launch of Project Horizon was announced.

The Government’s cuts agenda is a direct threat to our members’ jobs, and our communities’ services.

· TfL has had their government grant cut by £2.17bn over four years.

· From next year the government’s support to bus operators will be cut by 20%.

· On top of this Boris Johnson is cutting bus subsidy by £250 million over the next seven years.

· For the same period, bus and Tube fares will rise by 2% above inflation each year.

The cuts programme labelled Project Horizon is now in its early stages and ahead of making job cuts, it has been decided to transfer activities from LU into TfL. A total of 1463 staff are to be transferred under TUPE regulations and meetings between LU and TSSA are underway. Your elected TSSA reps are at the centre of those talks and are carrying out a series of workplace surgeries to consult with members over the impact this will have on staff.

So, Why the transfer?

TfL/LU has stated that the business objective is to create a single led organisation managed within TfL. Operations will be delivered in two business units, LU/Rail and Surface Transport will be supported by common support functions. LU Staff will transfer across to TfL from the following support areas:

· HR

· Finance & Support

· Strategy & Commercial


· PMO and Benchmarking Team (CPD)

· Customer Service Centre team

Staff in HR roles will transfer on 4 July and staff in all other functions will transfer on 27 July. It is TfL’s belief that the formation of one ‘group’ will deliver better, cheaper, transparent and more accountable support services. Upon transfer, it is expected that TfL will then seek to re-organise its support staff leading to job cuts being announced in October. It is expected that approximately 1000 jobs will be made redundant.

All staff within scope of the transfer will transfer under TUPE (Transfer of Undertakings [Protection of Employment Regulations] 2006. The TUPE regulations require that all staffs’ contractual entitlements will be preserved post the effective date of transfer. Your contractual terms and conditions of employment include:
  • Rates of Pay
  • Anniversary date for pay review (1July)
  • Hours of work
  • Annual leave entitlement
  • Continuity of length of service
  • Collective bargaining agreement with TSSA
  • All other collective agreements including redundancy terms under OCP

Your contract of employment is legally binding between you and your employer and should not be changed by LU leading up to the date of transfer. Following the date of transfer, your new employer becomes TfL who are then bound by those same contractual terms. It is unlawful for your employer to unilaterally change any of those protected terms and any variance to your conditions of employment would be subject to a legal challenge.

TUPE Consultation meetings with LU

TSSA were opposed to the consultation process initially adopted by LU. Your elected reps were invited into talks but no formal notification was received at TSSA’ s head office outlining the reasons for the transfer, the numbers of staff affected, the likely legal, economic and social consequences for the employees and what measures were likely to be taken in relation to those employees.

In accordance with the regulations of TUPE, LU is required to provide this information. Your full-time TSSA Officers were not invited into talks and in their absence, it was clear the TfL management who were in attendance, sought to steer the meetings and use as a vehicle for negotiating changes to contracts.

TfL dangled a ‘carrot’ by promising a 6% pay rise to staff transferring but in exchange for selling their contractual entitlements. TSSA engaged in correspondence directly with LU over this serious matter as this was in breach of TUPE. Consultation in accordance with TUPE is designed to protect contracts not erode them. TSSA firmly stated that your statutory entitlements are not currently for sale. If, at some point in the future TfL proposed to harmonise terms and conditions with TfL staff, this would have to be dealt with in the normal way, in line with the TSSA’s collective bargaining arrangements and TSSA would be duty bound to conduct a postal referendum amongst members to seek their approval to any such proposals.

At a later date, LU then submitted in writing the information TSSA sought around the transfer and conceded that an official from TSSA could attend the meetings with your reps. Strong representations have been made to ensure that no detriment is suffered as a direct consequence of the transfer.

What happens next?

2010 seen significant jobs cuts imposed in some pockets of TfL, Tube Lines, London Bus Operators, operational roles in LU with subsequent cuts in non-operational roles following LU’s Support Services Review (SSR). Over 2000 jobs have already been stripped and now Project Horizon has been triggered. The threat of further job losses looms again and the level of job security is spiralling downward. Your elected reps are co-ordinating surgeries to meet with members and workplace meetings have been requested. In the meantime, you can:

  • Become a workplace contact and help improve communication on your group. Email your details.
  • Pass this newsletter on to others in your area.
  • Not in the union? Join today, ask TSSA reps for an application form
  • For more information, contact TSSA reps. Your reps contact details are being circulated and meetings are being arranged.

 Download this pdf

  LUL - TfL TUPE Newsletter June 11

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