The second area of confusion concerns the single question on the ballot paper. Some areas feel that only asking one question does not allow people to express their views on the measures of protection negotiated by BECTU and separately on the principle of BBC Technology as a limited company. Because of that a new ballot will be issued and the earlier ballot is withdrawn.

In my earlier letter to you I explained at some length about the outcome of the negotiations. I do not propose repeating the whole letter, but below I summarise the main points.

BECTU has already said that we oppose Technology as a limited company. We believe that the BBC could pull all these functions together in a single department or "petal" and keep all the staff in the BBC. The argument that the need to pursue commercial work forces Technology out of the BBC does not stand up. The external commercial work that BBC Technology hopes to get is a very small part of the total market in each area, and that means they would not fall under current EC competition regulations if they stayed in house.

Members in some of the affected areas have been asking why the union cannot hold a ballot for strike action in opposition to the proposal to transfer staff out of the BBC. The simple answer is that it is illegal to take strike action over the principle of a transfer of undertakings.

After negotiations the BBC agreed that for two years from the date of the transfer staff in Technology Ltd would continue to be covered by the Redundancy Agreement, Annual Leave, Sick Pay and all the other Agreed Statements. The BBC also conceded that all existing staff could remain in the Pension Scheme and new staff would have the right to join it on the same basis as the rest of the BBC. Two years of protection is a step forward from the BBC's first position, which only protected your conditions for one year. The two year period is the same as that offered to those staff going into Resources Ltd in 1998 (it was only offered to them after taking industrial action!). The treatment on pensions is similar to that offered to Resources Ltd staff. The BBC initially said that Technology staff would be in the same bargaining unit as the rest of the BBC for the first year. After negotiations they improved on the offer and conceded two years. However they wished to reserve the right to come forward with proposals in year one to change the BBC's Performance Related Pay system from the current one. Whatever shape this takes, they have guaranteed that in August 2001 no-one will receive less than the BBC pay rise. In year two they want to reserve the right to propose a completely new pay structure and will discuss that with BECTU. Whatever the outcome of those talks, they have guaranteed that in 2002 no-one in Technology Ltd will receive less than the BBC pay rise. This is considerably better than the limited protection offered by TUPE legislation.

BECTU has seen the business plan and our main concern is the guarantees of work from the BBC which will ensure stability of employment. Resources Limited was set up with no guarantees and quickly found itself in difficulties over falling income, which resulted in redundancies. At the meetings with BECTU the BBC were clear that except in two areas all of the work currently done by the constituent parts of Technology will be transferring to the new company for a period of 5 1/2 years. The two exceptions are Consultancy and Projects, where the volume of work has yet to be finalised and in the Broadcast Playout Centre, where the work is guaranteed until the new BPC is up and running in spring of 2003. The details of the contract between the BBC and Technology Limited have yet to be agreed by the Executive Board but the BBC believes that the transfer of work is central to the success of the new company. We have reserved the right to come back to Chris Smith at the D.C.M.S. if the guarantees of work do not materialise.

Second Consultative Ballot

Enclosed with this letter is a new ballot paper, which I would ask you to complete and return as soon as possible in the envelope provided. There are two questions on the ballot, the first applies to the principle of Technology as a wholly-owned limited company. The second concerns the protections negotiated on your behalf by BECTU in the event of a transfer taking place. It is the view of the BBC divisional committee that the package on offer is the best that can be achieved through negotiation.

If you have any queries about this letter or the ballot please contact me at Head Office.

Yours sincerely,

LUKE CRAWLEY
Supervisory Official