Unite calls for pension protection in Bournemouth Transport deal

Bournemouth Transport, a 120-year-old company that trades as Yellow Buses, operated bus routes in Bournemouth, Poole and Christchurch, but fell into administration in July 29, leaving the fate of its 300 staff uncertain.

A statement from the administrators, Milsted Langdon LLP, cited the challenges posed by the Covid-19 pandemic and subsequent lifestyle changes as major factors behind the company’s recent struggles, it having seen “severely reduced passenger numbers on all routes”.

“This loss of revenue has had a financial impact on the business and additional factors such as the recent increase in fuel prices and the general rise in inflation has only made that greater,” the administrators wrote.

Milsted Langdon explained that negotiations over a potential merger with “a larger operator” had been ongoing for some time, and talks with “a large national operator” have entered “the final stages”, with a conclusion expected “within a matter of days”.

News of a potential buyer prompted Unite, which represents 200 workers at the company, to call on the potential buyer to protect jobs and pensions. The union’s statement noted that workers would be transferred to the new owner under the terms of any deal, but that no commitment had yet been made to retain all staff. 

It also noted that the buyer would not be legally required to maintain existing pension arrangements, potentially leaving the company’s final salary scheme to fall into the Pension Protection Fund, and thereby damaging members’ pensions.

Unite regional officer Janet Wall said: “The jobs and pensions of the workforce at Bournemouth Transport Ltd need to be fully protected. The collapse of the company into administration is not the fault of the loyal and dedicated workforce and they should not be forced to pay the penalty for the company’s failings.

“Unite is seeking an urgent meeting with any potential new buyer to secure cast-iron guarantees on jobs and pensions and to understand its long-term plans for the operation.”