Transco Faces Industrial Action Over Compulsory Redundancies

Unions are preparing to take industrial action against Transco, a gas supplier based in Birmingham, in a bid to prevent up to 1,800 workers from being made compulsorily redundant. The company, part of British Gas group BG, aims to cut 2,500 staff this year, but has so far only received 700 voluntary applications. Unions fear that the remaining 1,800 staff will be made redundant unless forced to do so, and have given the company an ultimatum: meet their demands or face industrial action.

Key Takeaways:

• Transco plans to shed 2,500 staff this year, but has so far only received 700 voluntary applications.
• Unions are considering industrial action to prevent up to 1,800 workers from being made compulsorily redundant.
• Transco's parent group BG reported a sharp increase in pre-tax profits from £839 million in 1996 to £1.3 billion last year.
• The company employs over 3,000 people in the West Midlands at its Solihull head office and three district offices.
• Transco's management remains confident that "virtually no" compulsory redundancies will be necessary.
• UK government regulator Ofgas has imposed tough targets on Transco to meet its restructuring goals.

Statistics:

• 2,500: number of staff Transco plans to shed this year
• 1,800: number of workers that unions fear will be made compulsorily redundant
• 700: number of voluntary redundancy applications received so far
• £839 million: Transco's pre-tax profits in 1996
• £1.3 billion: Transco's pre-tax profits last year
• 3,000+: number of employees employed by Transco in the West Midlands

Sources:

• "Transco Faces Repeat of BG Gas Workers Strike Threat". The Times
• "Transco in talks with unions over redundancy plans". The Guardian