VAUXHALL WAGES AND CONDITIONS AGREEMENT
COVERING HOURLY PAID EMPLOYEES FOR THE PERIOD
FROM: 3 AUGUST 1998 TO 2 SEPTEMBER 2001
Agreement made April 1998 between Vauxhall Motors
Limited (herein called the Company) of the one part and the Amalgamated
Engineering and Electrical Union and the Transport and General
Workers Union (Vehicle Building and Automotive Group) (herein
called the Trade Unions) of the other, covering each and all of
the Company's plants and/or operations at Ellesmere Port, Luton
and Toddington Road.
The parties have reached this Agreement on revision
to terms and conditions for the period from 3 August 1998 to 2
September 2001 inclusive.
2. RATES OF
(i) With effect from 3 August 1998 base wage
rates will be increased by 3.5 per cent. (Pro-rata for those working
part-time or under training). The new base wage rates are shown
in Appendix A;
(ii) Effective 6 September 1999 the rates
shown in Appendix A will be increased by the greater of 3.0 per
cent or the annual increase in the Retail Price Index in July
1999 (published August 1999) (Appendix B1 to be added);
(iii) Effective 4 September 2000 the rates
shown in Appendix B will be increased by the annual increase in
the Retail Price Index in July 2000 (published August 2000) (Appendix
C to be added1);
(iv) If the average exchange rate for the
£ sterling, as measured by Reuters, falls below DM 2.70 for
any two consecutive calendar months in the period between 1 July
2000 and 31 August 2001, then the pay rates arising from the increase
described in item 2 (iii) above will be increased by an additional
0.5 per cent. This increase will become effective from the first
pay week in the third year of the agreement after the exchange
rate requirement is reached. (If this increase is able to be paid
effective 4 September 2000 it will be included in the rates to
be published for inclusion in Appendix C. If the increase is introduced
after 4 September 2000 then new rates will be published for inclusion
in Appendix D1);
(v) From Monday 3 August 1998 the growth
rate of current productivity schemes will be moderated by 50 per
cent when payments reach the following levels:
|Ellesmere Port Plant
3. WORLD CLASS
This agreement commits the Company, its Trade Unions and
(i) achieving the long term productivity improvements
already identified in the latest business plans which will allow
the Company to reach world wide competitive levels. The relevant
information will be shared at each location.
(ii) confirming that the utilisation of the latest manufacturing
or warehousing techniques used in other parts of industry (eg
Andon) will be embraced enthusiastically.
(iii) A recognition of the potential future need for economically
or technically justified resourcing. Any known potential for such
resourcing at the time of this agreement will be communicated
at each location for discussion and review at local Joint Plant
(iv) Any separations or early retirements which may be
needed to facilitate achieving these improvements will be attained
on a voluntary basis.
NOTE: A more detailed explanation of the aims and requirements
of this part of the Agreement entitled "Achieving World Class
Standards" is attached as Appendix E
of the Agreement and should be read in conjunction with the above.
4. NEW EMPLOYEES
(i) The terms and conditions for new employees engaged
on or after 3 August 1998 are revised as follows:
The starting rate will be 82 per cent of the maximum rate
and employees will progress to the maximum rate over three years
Completion of Year One 88 per cent of maximum rate;
Completion of Year Two 94 per cent of maximum rate;
Completion of Year Three 100 per cent of maximum rate.
The rates effective from 3 August 1998 are shown in Appendix
F. The new rates for 6 September 1999 and 4 September 2000 will
be added in Appendices G and H. If the rates are increased as
a result of clause 2(iv) after 4 September 2000, they will be
published as appendix J2.
(ii) Vacation entitlement will start at 5 days less than
current employees ie 21 day. But five days will be earned as follows
in conjunction with service days:
|After Two (2) Years||None
||One Day||22 days
|After Five (5) Years||One Day
||Two Days||25 days
|After Ten (10) Years||One Day
||Two Days||28 days
|After Fifteen (15) Years||One Day
|After Twenty (20) Years||One Day
(iii) The Productivity Scheme for new hires will be re-indexed
to start at zero, based on current productivity payment levels.
Increases beyond this level will be the same as for current employees.
The zero points for the new employees Productivity Scheme at each
site are as follows:
|Ellesmere Port Plant||£33.62
Where it is operationally feasible, the Aftersales Warehouse
will have the facility to employ a number of part-time employees.
This number will not exceed 9 per cent of the full-time employees
in the Warehouse. In the first instance, volunteers will be sought
from current employees. Before such volunteers are transferred
to part time employment they will be given a full explanation
of the financial implications of the transfer.
6. WORKING PRACTICES
(a) Spring Bank Holiday Week and/or Summer Vacation Working
(i) The Company, has the option to require employees to
work on a one shift basis during the Spring Bank Holiday week
and/or one week of the Summer Vacation. Initially volunteers will
be sought to meet manning requirements. Notice of the Company's
intention to use this option will be notified to the affected
plant(s) prior to the preceding summer vacation.
(ii) Such vacation days will be taken on an individual
basis as a block week by agreements made (prior to previous year
end), between the Trade Unions and local Management. These rearranged
vacations must be taken in the same year that the closure period
is worked. If these days are not taken as vacation in that year
then they will be lost.
(iii) If the Spring Bank Holiday week is required to be
worked then the full week, including the Bank Holiday Monday,
will be worked. The Bank Holiday Monday will be paid at time-and-a-half.
NOTE: The existing agreement covering the putting together
of other floating days to create a block vacation remains in force.
(b) Flexibility Agreements
(i) The Luton Plant Flexibility Agreement made in July
1997, is accepted as an ongoing agreement which can be implemented
to meet Plant requirements as they arise.
(ii) The Agreements made at the Ellesmere Port Plant in
relation to temporary employees and three shift working are confirmed
as ongoing agreements which can be implemented to meet Plant requirements
as they arise.
(iii) In addition the Ellesmere Port Trade Unions and
management commit to agreeing a "corridor" agreement
on the same basic principles which apply at the Luton Plant, but
adjusted to suit Ellesmere Port Plant requirements. This agreement
is to be concluded by 31 December 1998, but if agreement cannot
be reached, then the matter will be referred to ACAS for conciliation,
and arbitration if necessary, with agreed terms of reference.
7. COMPANY COMMITMENTS
1. There will be a replacement model for the Vectra at
Luton with consequent investment at 45 jph capacity.
2. It is intended and planned to build the current Astra
throughout its model life and thereafter to source a suitable
replacement model at a similar capacity at Ellesmere Port.
3. Appropriate investment will be included in Vauxhall's
business plan and it is assumed that respective grant aid will
be sought. In the event of exceptionally adverse changes to the
economic environment which forces a reconsideration of the plan,
then the JNC/SJNC will commence talks on the actions to be taken
in regard of this.
4. In the meantime any possibility for higher production
caused by increases in market demand will be actively pursued
on behalf of both Plants.
5. Exceptional business circumstances apart, there will
be no compulsory redundancies arising from the introduction of
the changes associated with this agreement.
6. A minimum of 25 Modern Apprentices per year will be
hired across the company.
This Agreement represents the limit of changes to general
wages and conditions of employment for its duration. The terms
and conditions of previous Agreements continue except as modified
or discontinued by this Agreement.
(i) The rates shown in the appendices apply to all hourly
employees who are members of the Pension Plan. There are reductions
of between 1.5p and 3.5p per hour for employees on standard shift
who are not members of the Pension Plan.
(ii) Changes in rates of pay on completion of the qualifying
period of service become effective on the first day of the week
following the date on which the period of service is completed.
(iii) Group Utility Leaders receive an increment of 26p
per hour above the rate of employees with whom they are associated.
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