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London Buses Wage Structure

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Meeting: Plenary on 10 February 2016
Session name: Plenary on 10/02/2016 between 10:00 and 13:00
Reference: 2016/0371
Question by: Richard Tracey
Organisation: City Hall Conservatives
Asked of: Boris Johnson MP (Chairman, TfL) and Mike Brown MVO (Commissioner, TfL)
Category: Transport

Question

London Buses Wage Structure

If a future Mayor were to introduce a single wage structure for all of London's bus companies, and the level of services remained the same as today, how much would bus fares need to go up to pay for it?

Answer

Date: Monday 15 February 2016

London's contract model has created one of the best and most extensive bus networks in the world, and has been emulated by many leading international cities.

The capital's bus routes are provided under contract by 23 separate companies following competitive tendering. Each company has its own contracts of employment and terms and conditions which reflect different types of shifts. In some cases they protect the conditions of drivers transferred from other operators under Transfer of Undertakings (Protection of Employment) regulations (TUPE).

These terms and conditions have been negotiated and agreed by local union representatives for more than 20 years.

It has been estimated that levelling up pay to the highest driver rates could cost London up to £100 million a year, which would need to be recouped by either service reductions or higher fares.

 

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