Fact Service August 2014

Issue 31

London council’s costly employment offer

The London Borough of Bromley has been ordered to pay more than £64,000 in compensation to 18 of its staff, after an employment tribunal ruled it had offered employees cash incentives to sign new contracts that took them out of existing collective bargaining agreements.

The tribunal found that Bromley Council had written a series of letters to staff, with one letter offering £200 to workers if they signed new contracts of employment. The series of letters asked employees to agree to a localised pay award which replaced national and regional collective agreements.

Dave Prentis, general secretary of the public service union UNISON, said: “The decision is a significant victory for our members ... who were effectively coerced into signing away their employment rights. It should send a strong signal to other local authorities that they cannot simply withdraw from collective bargaining by going behind the union’s back and making these types of offers.”

The case was brought by 18 UNISON members who did not sign the new contract, and who are now set to receive £3,600 each.

www.unison.org.uk/content/conNewsArticle/5285

www.unison.org.uk/upload/sharepoint/Toweb/3683_001%5B2%5D.pdf