As far as we’re concerned it’s business as usual
Posted in General on 23. Jul, 2010
As far as we’re concerned it’s business as usual.”With 2.2 million customers, East Midlands is one of the largest electricity companies by customer numbers. It is also widely considered to be one of the best-managed under chairman Nigel Rudd and chief executive Norman Askew.Over the past two years they have steered the company away from activities such as retailing and security, concentrating on improving the efficiency of the core electricity operation The total workforce has fallen to 5,000, from 8,700 in 1993. The works council resulting from such talks will be prescribed in detail by European legislation.. East Midlands Electricity is expected to confirm this week that it has received an approach from another firm which could lead to a takeover bid that could value the company at pounds 1.4bn. If the Nottingham-based group is swallowed up, it would leave just four regional electricity companies (Recs) still independent, out of the original 12 at privatisation.
The most likely candidate to launch a bid for the company is thought to be the US utility firm, Houston Industries, which was previously linked to speculation about a possible approach for London Electricity.Nigel Hawkins, a utilities analyst with Yamaichi International, said: “The window of opportunity to take over a REC is narrowing, given the imminence of a general election and the likelihood of a Labour government with a more hostile attitude towards utility takeovers.”Rumours of a possible bid for East Midlands boosted the share price last week to 580p, a gain of 30p.
“Some of the representatives may be union members, others won’t.”Many of the British companies covered by the directive are still negotiating with employees and unions to establish a “voluntary” works council before 22 September.After that date any company which has failed to establish a works council – or has set up a structure which fails to meet the requirements – will be forced to co-operate with a special negotiating body. It’s a very poor agreement which doesn’t meet the minimum requirements and we intend to challenge it,” Mr Bisegna said.A spokesman for BP said the structure had been based on existing national works councils and employee forums. National representatives were properly consulted over the council.”We believe the system we’ve got in place meets the letter of the law and its spirit,” he said There was no need to involve unions directly in the process. He was a member of the European Commission’s competitiveness advisory group, made up of business people and trade unionists, which said that the completion of the internal market was an absolute priority to enhance competitiveness. Sir David has declared his support in principle for monetary union.Franco Bisegna, of the European Mine, Chemical and Energy Workers’ Federation, alleged however that BP had established a European Works Council without adopting the proper procedures.Unions on the Continent – which are recognised by BP for collective bargaining and are therefore seen as legitimate organisations for representing employees – should have been involved in setting up the framework, Mr Bisegna argued.”Delegates were confronted with an agreement and they were simply expected to sign.
The overwhelming majority of companies, British and foreign, are, however, ignoring the opt-out.Sir David, who has been identified with a more pro-European stance than many of his business colleagues, is accused of being “selective” in his approach to the EU. The litigation is to be launched after 22 September when employees’ leaders are allowed to challenge any works council which they believe breaches European statute.The case could take on the importance of a cause celebre because of the involvement of one of Britain’s most prominent blue-chip companies.All employers with more than 1,000 workers within the EU and more than 100 workers in two EU countries are compelled to set up a pan-European structure for consulting and informing their employees.The Maastricht opt-out means companies do not have to count British workers in deciding whether they qualify and UK staff have no right to be represented on the councils. Professor Douglas McWilliams, the institute’s economic adviser, said: “The economy is bouncing back after a sluggish period in the early part of the year.”. Sir David Simon, the Europhile chairman of BP, faces a legal challenge over his company’s policy towards a key element of European employment legislation. The European Works Council established by BP is threatened with court action over allegations that it fails to measure up to the democratic standards required under the directive.
Unions on the Continent contend that the council, set up 18 months ago, includes management appointees as worker representatives and therefore infringes the law. Small retailers have also been hit unfairly hard by the uniform business rate.Separately, civil engineering firms are becoming increasingly concerned about the “worsening condition” of the market for their services because of cuts in public spendingA survey by the Federation of Civil Engineering Contractors predicted further cuts in workload over the next year.But confidence among marketing professionals is the highest for a year, providing evidence that the economy will recover without fuelling inflation, according to the Chartered Institute of Marketing.Marketing managers are planning for a 6.8 per cent sales growth this year, but they expect the inflationary element to be 0.9 per cent. He said: “The small retailer is undoubtedly having a tough time at the moment.”Mr Peters said small firms generally were lagging the rest because the recovery had been led by manufacturing exports, not consumer buying, and spending had been restrained.The rise in out-of-town shopping was also working against small high street firms, and recent surveys showed that the number of retailers citing supermarket competition as a serious constraint on sales has risen from tenth to fifth biggest concern.