The 'Jobs for Life' Deal

Below is the text of the 'Jobs for Life' deal. This was an agreement made in 2001 between trade unions RMT and ASLEF, and employers London Underground Ltd, the PPP infracos and their subsidiaries. It followed strike action prompted by the impending imposition of the Public-Private Partnership.

The press coined the term 'Jobs for Life deal'. As you can see, it applies to all the above-named employers, and includes a guarantee of no compulsory redundancies.


Details of Settlement between London Underground and the Trades Unions

TRADE UNION ISSUE ONE: There will be no compulsory redundancies amongst staff.

It is the policy of LUL, the Infracos and their subsidiaries to work with the trades unions to avoid compulsory redundancies and provide job security (including one job offer to any member of staff who becomes surplus and is displaced).

In return for this commitment the trades unions including ASLEF and the RMT agree to:-

· Develop a framework to facilitate work/lifestyle balance and family friendly policies, with the principles agreed at the Company Council.

· Co-operate with the introduction of organisational change and new working arrangements.

· This agreement applies to all staff employed by LUL, the Infracos and their subsidiaries. It will pass to new employers as part of any future transfer arrangements of relevant staff (including Company to Company transfers that are not at the employee's instigation).

· Within the individual redeployment process, should an immediate alternative job offer not be available, the member of staff will remain employed and be 'used to best advantage', until a suitable alternative job can be offered.

· In relation to Infraco staff, the responsibility to guarantee at least one alternative job offer sits with the Infraco, as the employer. As part of the process of maximising opportunities for the individual, their views about employment with other employers will be taken into account. As a result, the Infraco may approach members of their parent organisation (i.e. the companies who are members of the consortium which own the Infraco) with regards to any vacancies on 'London Underground Railway Industry' work; and other Infracos. Protected staff who choose to take up employment with other Infracos, are able to continue in the LRT Pension Fund and to retain their travel facilities, as long as they remain on London Underground work, as detailed in the Code of Practice. Where such arrangements are considered, it is recognised that the Infraco remains the employer with the responsibility to redeploy the displaced member of staff and therefore any such change of employer is purely voluntary. Existing guidance will be followed in determining what constitutes a suitable alternative job. (This process is included in the Contractual Redundancy Scheme for transferring staff).

· The redeployment process is not limited in the number of times it can be applied. It is a process for handling displacement. Therefore if an employee is displaced on more than one occasion the process will be used on more than one occasion, regardless of employer.

· The following will be amended to reflect this agreement, through the already established Joint Working Party:

Ø Section 6.2.6 (Redeployment) of the Agreement for Operational Staff and Operational Managers. Ø The Contractual Redundancy Scheme.

· As a result of this agreement no compulsory redundancies will take place, on the basis that everyone concerned abides by this agreement.

TRADE UNION ISSUE TWO: The establishment level of staff be agreed between the unions and the respective employer and that there be no reduction of staffing in any circumstances which might adversely impact on safety.

Any staffing level changes with safety implications will be dealt with through the Safety Review and Change Control process, as referred to in the statutory Railway Safety Cases and have the involvement of Health and Safety Representatives. In addition, the existing Machineries of Negotiation make it clear that any impact on staff as a result of new timetables and schedules, or issues arising from changes to working arrangements, are questions for negotiation.

The appropriate negotiating machinery to reach agreement will apply and will be exhausted if necessary. Both parties to use their best endeavours to reach an agreement, operating within the Machineries of Negotiation and to respect the process, not take unilateral action and not impose staff number reductions whilst discussions continue. If in the event the Machinery is exhausted, management will not impose for six weeks.

· The above does not preclude the rights of the trades unions to refer issues to the recently established Underground Health and Safety Forum, which is a joint LUL/Infraco and trade union body.

· The relevant local representatives, including health and safety representatives, may be co-opted to assist in discussion on staffing levels as appropriate.

· LUL and the Infracos will engage the unions in an annual review of staffing levels to ensure there is clarity on the current situation and any future plans.

· LUL, the Infracos, their subsidiaries and any successor organisations will ensure these arrangements and obligations are made clear to any future employers.

· The parties to this agreement accept that they have a joint responsibility to ensure that acceptance of proposals is not unreasonably withheld and, once questions or matters have been settled, to take all reasonable steps to ensure their successful implementation.

· The following will be amended/updated to reflect this agreement:

Ø Section 6.1.1 (Staffing Levels) of the Agreement for Operational Staff and Operational Managers.

TRADE UNION ISSUE THREE: All employees employed at 22 December 2000 remain on their existing terms and conditions of employment and in the employment of their existing employer, save with the agreement of the individual and the individual's trade union.

London Underground and the Infracos restate their commitment to negotiate with the trades unions as detailed in the jointly agreed Machineries of Negotiation and are committed to improving consultation and communication processes. In situations where there is a proposal to change employer, through a transfer of employment, there will be full negotiation, in good time, with the trades unions and the staff concerned, with a view to reaching agreement. The provisions of the Code of Practice, developed with the trades unions, will be followed.

Code of Practice

LUL can confirm that the Code of Practice will be contractually binding. To ensure this meets the need of each employee involved in any transfer arrangements (e.g. PPP, PFI, etc.) the wording in the main Contract for the PPP will be amended to require Infracos to make sure this obligation is contractually binding on successive employers.

· Staff transferred will have the following protected: contractual salary, hours, annual leave/pay, sick leave/pay, retirement, maternity leave/pay, paternity leave/pay. (See Code of Practice above, which sets out contractual provisions for pensions and travel facilities for the PPP, as outlined in the Deputy Prime Minister's assurances). The obligation to negotiate changes to terms and conditions, pay awards, and principles of employment, for those staff whose terms and conditions are currently regulated by joint agreements with the trades unions, will be passed on to the new employer and any changes negotiated through the negotiating machinery.

· The Code of Practice on staff transfers requires bidders (during the tender stage) to provide detailed information about their intentions for the transferring workforce - demonstrating how well they have understood the existing terms and conditions of employment of the staff and highlight any proposals they consider need to be negotiated with the trades unions.

· Bidders are also required by the Code to provide positive statements on pay and allowances, hours, leave, sick pay/leave, notice periods, recruitment, trade union recognition, collective agreements, and equality.

· Bidders are also required by the Code to provide information about their employee relations and TUPE track record.

· As part of the evaluation process to assess prospective new employers, arrangements will be made for the trades unions to meet with bidders. Comments from the trades unions will be sought as part of the evaluation process.

· LUL and the Infracos will require successor organisations to provide a quarterly report on the terms and conditions of service of those staff transferred under TUPE.


It is acknowledged by all parties to this agreement that the terms outlined in this document will form part of the transfer arrangements for staff from LUL and its subsidiaries to successor organisations. This will be stated in the Code of Practice.

This document will become Appendix H of the Code of Practice.