FURLOUGH ARRANGEMENTS – CORONAVIRUS – BALFOUR BEATTY (LU CONTRACT)

Our Ref: LUL/14/3

8 April 2020


Dear colleague

FURLOUGH ARRANGEMENTS – CORONAVIRUS – BALFOUR BEATTY (LU CONTRACT)

Balfour Beatty advised your union that it would be utilizing the government’s Coronavirus Job Retention Scheme on the following basis:

Basic pay: 80% of average earnings (based on average monthly earnings in the tax year 2019/20 but excluding any travel and subsistence expenses) for earnings up to the UK Government threshold of £37,500 plus 80% of basic pay above the £37,500 threshold. 
Balfour Beatty will also adopt a bar for low earning employees of £22,000 below which point salary will not be reduced.
Pension contributions for employees on Furlough Leave: all pension contributions for the Furlough Leave period will be based on actual pay during that period
Travel payments for employees on Furlough Leave: all payments related to travel will stop 
Subsistence payments for employees on Furlough Leave: these will continue to be paid if employees have committed lease arrangements or an ongoing financial commitment to short term accommodation.  This will need to be evidenced and immediately escalated to your local HR team

During the month of April Balfour Beatty will review its position and advise of any changes which may be made if required for May.

This matter has been considered by your National Executive Committee which notes that Balfour Beatty has made significant profits from its LUL work and therefore expects the company to protect the workers who generated those profits and maintain their full pay at this time.

Your NEC also notes that Balfour Beatty is willing to cover any additional payments over the government’s salary protection scheme so that members receive 80% of their full salary regardless of the scheme’s cap of £2500 per month.

Further discussions are taking place between the company and your senior representatives over this matter and I hope to provide an update in due course.


Yours sincerely

Mick Cash
General Secretary