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Stagecoach: Union wants assurances over takeover plans for Perth bus giant

Unite the Union is seeking assurances from the proposed new owners of Perth bus giants Stagecoach.
Unite the Union is seeking assurances from the proposed new owners of Perth bus giants Stagecoach.

Assurances are being sought around staffing numbers should the proposed takeover of Perth bus firm Stagecoach get the go-ahead.

In March, DWS Infrastructure tabled a £595m bid for Stagecoach – a deal the Perth firm said would save jobs in the Fair City.

It said at the time overall headcount in frontline operational roles expected to remain the same. However Unite the Union has requested assurances on staffing numbers.

“We note there is an expectation, but not a commitment, to retain the overall headcount in frontline operational roles.

“No working definition on frontline operational roles has been put forward, and we will urgently seek further engagement on headcount plans if the offer is accepted.”

‘Significant uncertainty’ for staff

The union said it would not be unusual for legally binding commitments to be put in place to protect jobs. It would also rule out any compulsory redundancies.

The union said Stagecoach staff have faced “significant uncertainty” in recent months.

That statement comes after the Stagecoach board backed an all-share offer from National Express last December.

The new proposed deal values Stagecoach at £595m, but assurances are being sought by Unite the Union.

That would have seen Perth head office jobs move to Birmingham.

The statement from Unite the Union added: “We want to ensure that the voice of employees is heard as the company enters a new era.

“Investment in bus transportation has great potential to transform communities for the better, reduce carbon emissions, connect people with workplaces and leisure in greater numbers.

“None of this is possible without support for employees.”

A report detailing the union’s opinion on the proposed takeover deal sets out a number of concerns.

Plans for investment in Stagecoach?

It says the future development of the Perth firm, founded by Sir Brian Souter and his sister Ann Gloag, would require “sustained investment”.

Sir Brian Souter, Stagecoach co-founder.
Sir Brian Souter, Stagecoach co-founder.

The statement adds: “The offer, while recognising the need for such investment, does not set out any concrete plans regarding the capital required.

“Ensuring that sufficient capital is available to invest in the future of the business is a priority for employee representatives.”

Unite also wants more information on the new owners’ plans to attract and retain staff.

“While it is welcome that DWS say they expect to continue efforts to recruit into frontline roles, it is vital again that more information is presented as to how this will happen,” it added.

“It is clear that this challenge can only be met by addressing pay and terms and conditions”.

Engagement sought around jobs plan

If the takeover goes ahead, Stagecoach would no longer be listed on the Stock Exchange as a publicly listed company.

The takeover document states this could have an impact on jobs.

More than 150 Stagecoach services were cancelled earlier this month due to a lack of workers.

Stagecoach plans to fully open its new customer contact centre in Perth this month.

A “small number of roles within the business development function” and “certain central support functions in the UK that currently support Stagecoach’s status as a publicly listed company” may no longer be needed.

The union said further details on this and is seeking engagement from DWS.

Unite said it would only fully support the DWS offer if further detail was provided to address the issues.

A Stagecoach spokesperson said: “We welcome the contribution from Unite.

“We will continue to engage with the trade union and our people on those points and other relevant matters relating to the future of the business.”

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