Source · Select Committees · Transport Committee
Recommendation 23
23
Acknowledged
Require local transport authorities adopting franchising to incorporate improved employment standards
Recommendation
The Department should consider the practicalities of requiring local transport authorities which adopt bus franchising to incorporate improved employment standards for bus workers. This should include minimum pay rates—based on the London model—and fair pay progression based on a driver’s experience rather than their length of service with a specific operator. This would help to avoid the risk that operators bidding for franchises base their bids on unsustainably poor pay and conditions for staff. (Recommendation, Paragraph 82) Bus fares and concessions
Government Response Summary
The government states that robust legislation (TUPE) already safeguards employees during franchising transitions and that franchising authorities can already include expectations for staff pay and conditions in contracts. Updated franchising guidance will address contractual matters following consultation.
Government Response
Acknowledged
HM Government
Acknowledged
There is already robust legislation in place to safeguard employees during the transition to franchising. The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) apply to employees of businesses across the United Kingdom. Under Section 123X of the Transport Act 2000, TUPE is expressly applied to staff transfers arising from the introduction or transfer of a bus franchise. This ensures protections for employees who are “principally connected” to the services being franchised. Ultimately, it is the franchising authority that carries the financial risk and sets the contractual terms with operators. As in London, these contracts can include expectations around staff pay and conditions. The Department’s franchising guidance – which also covers procurement and contractual matters - will be updated following Royal Assent of the Bus Services (No.2) Bill, with consultation involving stakeholders including trade unions, operators, and local authorities.