Unions have warned of 'huge uncertainty' for staff over a planned merger between Stagecoach and National Express - despite reassurances from bosses that they 'expect' front line roles to be safe.
Plans for a National Express all-share takeover of Stagecoach at the end of 2022 were revealed on Tuesday morning.
Both firms have a major presence in the city, with more than 2,000 people on the Stagecoach workforce alone.
READ MORE: Bus giant Stagecoach signs merger deal with National Express
Stagecoach Manchester operates around 800 buses in the region, running routes in areas including Trafford, Stockport, Tameside, Salford and Wigan.
Because the deal is in its early stages - yet to be approved by shareholders for the two listed firms - the available detail is scant.
As well as fears over job stability and pay and conditions for staff, the takeover has raised questions over how it may impact the judicial review launched by Stagecoach against Andy Burnham's bid to regulate bus services in Greater Manchester.
The Manchester Evening News has asked the mayor's office for their take on this.
But the timing of the announcement, on the cusp of Christmas and with another Covid wave likely imminent, comes at an already stressful time for workers.
The lack of clarity, and both firms’ failure to consult Unite ahead of the announcement, has led the union to demand an emergency meeting with National Express and Stagecoach to fully understand what the merger means for members.
Dave Roberts, North West regional officer for Unite, told the Manchester Evening News : "There is concern for anyone who works for Stagecoach and the potential for job losses.
"We don't have much information, and we need answers.
"They are not guaranteeing front line jobs will be safe and we know for a fact that all bus companies are reviewing their routes because of Covid so potentially they might cut services and make redunancies, especially with a merger."
He said plans to franchise services in Greater Manchester would likely not happen before the deal is played out.
Bobby Morton, Unite national officer for passenger transport, added: “The failure to abide by existing agreements is concerning and will create huge uncertainty and unnecessary worry across the entire workforce just prior to Christmas.
“When Unite meets with the new management in addition to assurances on pay and conditions the union will be demanding a public commitment that the merger will not result in any compulsory redundancies.”
A joint statement from Stagecoach and National Express, which neither firm were willing to expand on when asked by the Manchester Evening News , highlighted the potential for ‘increased opportunities’ including training, development and ‘career path flexibility’.
But it also referred to the potential to ‘generate cost savings’ by reducing 'around 50 duplicative roles' in coroporate, head office and senior management, as well as additional IT posts.
Any redundancies would pend the outcome of a ‘detailed review’, it said, but aside from those specific roles, the board did not expect ‘any job losses, including frontline operational roles, or depot closures'.
However, Unite the union are seeking further assurances, particularly around pay and conditions.
It follows threatened strike action by Stagecoach workers in October, which was called off after a pay deal was struck.
Sharon Graham, Unite general secretary, said the takeover ‘must not be paid for by attacks to workers’ terms and conditions’.
She added: “ Unite has been winning better pay across the sector to push back against the years of racing to the bottom on pay and conditions, and that commitment to protecting the jobs, pay and conditions of our members remains firm.
"We expect the newly expanded National Express company to work with us to respect existing agreements, and must warn that failure to do this or any attempt to make our members worse off will be forcefully resisted."
The terms of the deal would see Stagecoach shareholders receive 0.36 new National Express shares for each Stagecoach share they own.
The Combined Group, whose merger it was said would help cut costs following an unprecedented period for the travel sector, is expected to have a fleet of around 40,000 vehicles, a workforce of approximately 70,000 people, and with more than a billion passenger
National Express has said the deal, which is subject to shareholder approval, is likely to be scrutinised by the Competition and Markets Authority (CMA) as the enlarged company would control 40,000 vehicles and 70,000 staff.
Martin Griffiths, Chief Executive of Stagecoach said: "Our companies have a shared vision around helping to build more sustainable communities and secure a net zero future.
“We also both have a strong track record of investing in our people and in our services to deliver sector-leading customer service, operational excellence and great value travel.
"This is an exciting opportunity to bring together two of the UK's iconic transport brands to create a strong, diverse business that is well-placed to grow the market for greener and smarter public transport for the benefit of all stakeholders."
A Transport for Greater Manchester spokesman said: "We are aware of the Stagecoach and National Express merger, as announced yesterday. Our procurement processes for bus reform have now started and, as part of that, we will consider expressions of interest from all interested operators."
