PSM Reorganisation

Monday, 18 May 09

In accordance with Section 188 of the Trade Union & Labour Relations (Consolidation) Act 1992, it is with regret that you are informed you of proposals to make redundancies within Amey Services Limited of some employees of Amey Services Limited who have been engaged in the AmeyColas joint venture business.

This letter therefore commences the start of our formal consultation process with you, and given the numbers of employees who will potentially be at risk (subject of course to the outcome of the consultation process), the consultation period is set at a minimum of 30 days. We understand that you and the other employee representatives to whom this letter has also been sent will represent the interests of all potentially affected employees who may be at risk of redundancy as a result of these proposals.

The proposals apply to employees of Amey Services Limited who work within AmeyColas, our Track Renewals joint venture business which operates in the Network Rail territories of London North West (LNW) and Western (GW). We believe that these territories form two separate establishments, but for the purposes of consultation we intend to consult regarding the two establishments concurrently.

The reasons for the proposed dismissals.

The business reasons for these proposals are as a direct result of the decision by Network Rail to reduce their workbank volumes by 40% in comparison to those previously supplied. This was to achieve an overall cost saving in the current financial year of 28%.

The total number of employees of any such description employed by the employer at the establishment in question.

Following careful consideration of the impact of this decision to Amey by Network Rail, and the resulting dramatically reduced workbank, it has become apparent that our current employee headcount numbers within the two establishments cannot be sustained.

We propose to put a total of 52 Amey Services employees at risk of redundancy within the Project Specific Management functions (PSM) of AmeyColas, to include 28 within the London North West territory and 24 within the Western territory.

The numbers and descriptions of employees whom it is proposed to dismiss as redundant.

The specific numbers and descriptions of the roles proposed as redundant from each establishment are detailed below.

London North West – total Amey and Colas PSM headcount = 107:

1 Site Manager Bicester

1 Technical Engineer Bicester

1 Construction Manager Bicester

1 Site Supervisor Bicester

1 Site Supervisor Bicester

1 Supervisor Bicester

1 Engineer Smethwick

1 Site Supervisor Smethwick

1 Senior Supervisor Smethwick

1 Supervisor Smethwick

1 Supervisor Smethwick

1 Field Administrator Smethwick

1 Senior Engineer Smethwick

1 Technical Engineer Smethwick

1 Possession Planner Smethwick

1 Resource Co-ordinator Duddeston

1 Supervisor Duddeston

1 Site Supervisor Duddeston

1 Site Supervisor Duddeston

1 SEQ Advisor Duddeston

1 Site Manager Duddeston

1 Labour Co-Ordinator Bletchley

1 OTM Planner Bletchley

1 Safety Advisor Bletchley

1 Lead Engineer Bletchley

1 Assistant Project Manager Bletchley

2 Trainer/ Assessors Lichfield

Western - total Amey and Colas PSM headcount = 139:

- Exeter (where we propose to close the depot)

9 Site Managers

1 Senior Site Manager,

1 Technical Clerk,

1 Team Organiser

1 Area Planner

1 Technical Engineer

1 Area Signalling Engineer

1 Area P-Way Engineer

- Bristol

1 Strategic Resource Planner,

1 Train Planner,

1 Training Co-ordinator,

1 Track Quality Specialist,

1 Purchase Ledger Clerk,

1 Project Engineer

1 Engineering Manager

- Sutton Courtney

1 Engineering Manager.

During the consultation period, we fully intend to consider any and all proposals you may have to avoid / reduce the number of potential redundancies and to mitigate the effect of any potential dismissals. In this regard we would want to explore with you, amongst any other ideas, the possibility of unpaid leave, reduced working hours, redeployment and voluntary redundancy.

The proposed method of selecting employees who may be dismissed.

In the event that consultations are exhausted and redundancies are still required, we would propose to use a competency based interviewing selection process (please see attached). This interview process would evaluate competence against required standards for each role and would be conducted through a consistent, formal interview process using any other supporting evidence also available.

The proposed method of carrying out the dismissals, with due regard to any agreed procedure, including the period over which the dismissals are to take effect and the proposed method of calculating the amount of any redundancy payments

In line with the 30 day consultation period set out above, we anticipate that any potential redundancies would take effect from 19 June 2009. Affected individuals would be paid the appropriate redundancy package, which will vary due to the differences of individual terms and conditions that will be inclusive of all statutory entitlements as applicable.

In light of the above, I would suggest that we urgently convene a formal face to face consultation meeting with you and the other appropriate representatives. I understand you will be available on 27 May. Please therefore confirm to me your availability at your earliest opportunity. I will chair the meeting on behalf of Amey, supported by Lisa Maher,

HR Director, Diversity and Simon Bunn, Business Director Track Renewals. I anticipate that you will want to bring along at least one other appropriate representative with you to any future consultation meetings. Please also confirm to me the name of who may also be attending, as soon as possible.

I would also suggest that we establish from the outset a principle of open communications to our staff / your members where possible. In this regard Amey is keen to brief our staff as soon as possible and we therefore invite discussion as to the content of any such brief as an urgent topic for discussion.

Finally, given the timing of these proposals, we may wish to utilise our planned Rail Company Council meeting on 29 May to continue consultations regarding our proposed redundancies. Perhaps you could let me have your views on this also and dates of future consultation meetings generally.

It is with regret that the company is taking these steps, however, in the current economic climate and based on the workbank reductions within the AmeyColas business it is unfortunately unavoidable.