- Conference
- 2018 Energy Service Group Conference
- Date
- 26 February 2018
- Decision
- Carried
UNISON Energy Conference notes with cautious concern the proposed merger of SSE and Npower which will see the Big 6 energy suppliers become the Big 5 and the merged company holding 12.7 million customers combined.
Conference we note also the SSE chief executive Alistair Phillips-Davies claiming that the merger will create a new model – one that would combine the “resources of established players with the agility and innovation of an independent supplier”. Meanwhile the CEO of Npower talks about “scale and skills” needed for the success of a merged company. He will be focusing on merging the right skills to achieve the scale the merged company wants to achieve.
When we hear terms such as “scale and skills” agility and innovation, synergies and consolidations and economies of scale it is hard not to worry that these are buzz words for cost efficiencies through job losses and redundancies.
Our members in Npower are concerned about what this all means for their future employment, whether they are of the right skills and have the agility or innovation to be those who make it through to a merged company should the merger go ahead. The company in the meantime says it is all too early to talk about the impact on the workforce, meanwhile they are able to accommodate the concerns of MP’s and the CMA worried about competition and the market and shareholders worried about the share prices and dividends.
We call on UNISON Energy Service Group Executive to ensure that UNISON;
1. Engage with the senior management of both companies to seek guarantees there will be no compulsory job losses and any attrition will be done voluntarily and on decent terms;
2. Seek agreement that both companies will commit to retraining and retaining employees who wish to stay on in the new merged company and contribute the success of ‘Mergeco’
3. Works to ensure that no merged employee is materially less off in their terms and conditions of employment;
4. Seek guarantees about the respective pension schemes to ensure that no transferred employee is materially worse off under a new pension arrangement; and
5. Make sure that the new Mergeco’ will honour existing recognition agreements with the trade unions.