Resources decision deferred

The BBC Board of Governors have deferred making a decision on proposals to turn the Resources Directorate into a wholly-owned subsidiary.

The outcome of yesterday's Board of Governor's meeting was announced at a meeting today (21 March) between union representatives and senior Resources management. It is understood the Governors have a number of issues concerning the proposals they wish to consider further.

After the meeting BECTU welcomed the fact there would be no change in the status of BBC Resources in advance of the General Election.

The meeting also gave an opportunity for Resources management to respond to the points made by the union at the last meeting. These points included seeking guarantees about the future if Resources Ltd. is eventually introduced.

BECTU welcomed a number of the replies given by management on such issues as pensions and the redundancy formula. However BECTU is concerned about the implications of some of the responses given, including:

• Management said they were reviewing if UPAs (Unpredictability Allowances) were the appropriate mechanism of reward in Resources.
• Management did not seem to be in a position at the meeting to reveal projected staff numbers in the future from the Resources business plan.
• Resources wished to have separate pay and conditions bargaining from the rest of the BBC if they became a limited company; and they said they wished to retain the right to devolve pay discussions further down the company in the future.
• Management said they could not give the guarantees on job security and maintenance of earnings sought by the union at the last meeting.

Management restated that after taking legal advice they believed the only way they could increase external income was to make Resources a wholly owned subsidiary in order to avoid an Office of Fair Trading challenge. BECTU is taking separate legal advice on this question.

The meeting was adjourned, and it is not expected it be will re-convened in the near future.