BMW halts agency workers plan for union talks

Carmaker will discuss Swedish derogation model

BMW has agreed to put on hold plans to employ agency workers thorough the so-called ‘Swedish derogation’ model while it has talks with unions on the issue.

Swedish derogation – under which agency workers become permanent employees of the agency and are contracted out to the employer – is being used by some companies as a response to the Agency Workers Regulations which came into force last year. The method, used by large employers including Tesco, Morrisons and Jaguar Land Rover, effectively means that the employers can get around the requirement to give agency workers the same pay and conditions as permanent staff after 12 weeks of employment.

But BMW has agreed not implement the plan for the time being while it enters talks with the union Unite, which is concerned about the implications of the move.

A BMW statement said: “The company and Unite, the union, have jointly agreed to enter into discussions relating to the use of agency staff. While these discussions are ongoing the company will not proceed with its plan to use regulation 10 of the Agency Workers Regulations [the Swedish derogation].”

The carmaker also said it would not proceed with its plan to close the current pension scheme to new entrants while negotiations with unions are ongoing.

Roger Maddison, national officer for Unite, said: “As always we are prepared to have meaningful discussions with companies in the car industry. Unite is determined to protect all the terms and conditions of our members and ensure that agency workers are treated fairly, in the true spirit of the agency workers legislation.”

13 January 2012