BCI cements union deal

Blue Circle Industries has finally sealed a ground-breaking deal with trade unions in its UK cement manufacturing division, which sets a new tone for industrial relations.

Under the agreement, expected to be announced this week, the four unions at Blue Circle Cement will offer improved flexibility and productivity in return for guaranteed pay rises and job security.

The deal, which has been under negotiation since last year and was first flagged in January, will give BCC the freedom it needs to implement a wide-ranging reorganisation and restructuring and will generate savings of pounds 10m a year.

Last year, Blue Circle announced a series of measures at BCC to improve competitiveness and profitability. Overall savings will amount to around pounds 50m a year by early in the next decade and will be supported by a pounds 300m investment programme.

Although around 300 jobs will go from the 2,000-strong workforce, most will be under a voluntary redundancy programme which, under the agreement will be open to employees in ongoing businesses. That does not, however, restrict BCC in implementing disposals and plant closures.

The unions have recognised the need to work in partnership with the management if BCC is to improve competitiveness and long-term employment prospects. They have accepted that some job losses are unavoidable.

The workforce at BCC's ongoing businesses will take comfort from improved job security, which will ensures they will not be made compulsorily redundant. They have also been given a three-year pay deal which guarantees increases of inflation plus 0.25 per cent. The intention is to roll the pay deal forward beyond the initial three years. BCC is also committed to work towards a 37-hour week by 2001.

The deal with the four unions mirrors a similar agreement that BCC struck with its 127 lorry drivers in January.

Both unions and management say they are delighted with the outcome.

There has been widespread consultation across the workforce which brings together white and blue-collar staff and offers to harmonise conditions and training and development programmes.