Updated: Rivus unable to reach agreement with Holman over BT Group contract

Rivus has been unable to reach an agreement with Holman and BT Group over the future of hundreds of employees and potential redundancy costs.

Staff were updated in a memo on Friday (September 15) by Rivus CEO, Victoria Knight, which was leaked to Fleet News. In it, Knight said Holman had indicated that it was prepared to accept the transfer of just 64 positions under TUPE – Transfer of Undertakings (Protection of Employment) – regulations.

In the message to staff, seen by Fleet News, she explained that Holman continues to dispute any legal responsibility under TUPE for the vast majority of Rivus staff impacted by the BT Group contract loss and any redundancy pay.

She also added that legal advice meant it was unable to step in and pay any redundancy due to employees.

“If Rivus were to step in and pay for any redundancies or associated costs that BT or Holman are liable for, it would significantly affect the legal position and as such Rivus is not in a position to do this”, she said in the leaked staff memo.  

BT Group announced in March that Holman had been awarded the contract to maintain its commercial vehicle fleet, while it would be transferring the management of its company cars to Arval UK, ending its long-standing relationship with Rivus from September 30.

However, while Fleet News understands that Rivus workers employed on the BT company car team will be transferred under TUPE to Arval, with any redundancy costs covered by the new contract provider, Holman is adamant TUPE does not apply and informed Rivus of its position on August 11.

Holman, according to Rivus, argues that TUPE does not apply, because it believes the activities that it will carry out for BT are “not fundamentally the same” as those carried out by Rivus.

It will use digital solutions as the core foundation of its service provision for BT and it does not operate any garages. Instead, it will leverage a distributed network of approximately 1,200 third-party garages.

“Whether these services are undertaken in a different way i.e., delivered through more digital solutions, is irrelevant as to whether TUPE applies,” said Rivus in a statement to Fleet News.

“Fragmentation of services - Holman not operating an internal garage network and instead using third party garages - does not affect the fact that TUPE applies as the activities are the same, this is supported by case law.”

Rivus maintains that colleagues identified as in scope of TUPE should transfer under TUPE law, and that it is Holman’s responsibility to confirm any measures, including redundancy.

“Rivus is aware that emotions are understandably running high in this highly complex and difficult situation,” Rivus

Holman has been asked to comment but is yet to respond.

An "untenable" situation for employees

The Association of Fleet Professionals (AFP) told Fleet News that it is concerned with the way Rivus employees are being treated.

AFP chair Paul Hollick says several of the people affected by the ongoing dispute over TUPE, involving Rivus, Holman and BT, are AFP fleet manager members and labelled it an "untenable situation" with Rivus employees not knowing whether full redundancy costs will be met.

"Everyone should be working towards a sensible resolution that ensures employees are treated properly and that should happen as soon as possible,” he added.

The Advisory, Conciliation and Arbitration Service (ACAS) states that the two types of transfer where TUPE applies are: business transfers and service provision changes.

Business transfers are where a business or part of a business moves from one employer to another.

Service provision changes is where contracts are taken over. ACAS explains that this can be because: a service provided in-house is taken over by a contractor (known as 'outsourcing'); a contract ends and the work is transferred in-house (known as 'insourcing'); and a contract ends and is taken over by a new contractor (known as 'retendering').

The Communications Workers Union (CWU), which is representing some of the affected employees, says Rivus also insists that, according to its Fleet Services Agreement with BT Group, the liability for any redundancy costs sits with BT.  

Rivus told Fleet News that BT has indicated it is willing to make a payment that will cover the following: payment in lieu of notice, paid in full; and up to 68% of an individual’s redundancy pay.

“Trade unions will now discuss with their members to understand how they wish to move forwards,” Rivus said in a statement.

BT Group has been asked to comment but is yet to respond.

Hundreds of Rivus employees left in limbo

Fleet News understands that around 660 staff at Rivus have been left in limbo, with affected employees falling into four cohorts.   

Group one, which Fleet News understands to number 500-plus employees, consists of those in Rivus’ view who are in scope for TUPE to Holman, that Holman currently does not accept. This group of employees would be included in the proposed package offered by BT.

Group two includes those in scope for TUPE to Holman, who Holman suggests can transfer as TUPE applies – understood to be some 60-plus employees.

Rivus says it will continue to consult and understand measures from Holman should it accept TUPE for this population.

Group three involve those impacted by Rivus’ restructuring.

In July, Rivus revealed a major restructure in an effort to cut costs after struggling to replace business lost from losing the fleet maintenance deal with BT Group.

The company confirmed to Fleet News at the time that it would be closing 48 of its light commercial vehicle (LCV) garages, cutting its existing network by more than half, from 78 to just 30 sites including its heavy goods vehicle (HGV) network. Fleet News understands that this impacts around 100 employees.

Rivus says it fully accept their liability for these employees, and any associated redundancy costs which will be paid in full.

Finally, group four covers those in scope for TUPE to Arval, which Fleet News believes to involve fewer than 10 members of staff. 

An Arval UK spokesperson told Fleet News: “A small number of employees are affected by the transfer of the car fleet and the TUPE process.

"Arval UK is talking directly to those affected and the consultation will conclude at the end of September.” 

Rivus says it will continue to consult with staff and clarify Holman’s legal position in the coming days.

The CWU is due to hold a member’s meeting on Monday (September 18) to discuss the situation further, and to gauge the opinions of employees.

The Rivus statement continued: “Rivus is aware that emotions are understandably running high in this highly complex and difficult situation, but it is important to focus on the facts, and not hearsay or opinion.

“We remain fully committed to achieving the best possible outcomes for all colleagues affected by the transfer of service provision to Holman, and the associated restructure of the Rivus business.”