So, we tendered for a job where we were told TUPE might apply, the incumbent contractor had provided details of the wages of their employees which the winning bidder would have to employ and maintain. The 4 man tree squad were paid as follows: one man : £200 per day, one £144, one £124 and the trainee £80... So £548 a day plus overtime pensions and PPE Etc. on top of this a chip truck, chipper, tractor and roofmount and timber trailer were to be provided as well as the usual equipment. As anyone working in the industry knows those are very high wages, but not beyond reason.
It occurred to me that it is in the incumbent contractors interest to inflate their wages as far as TUPE is concerned since any other bidder tendering will have to add these figures in to their price. Because wages are confidential and can't be obtained under freedom of information neither the buyer or a rival contractor can know for sure if the stated wages are accurate.
In this particular case the incumbent contractor won the tender again (surprise surprise). We were not second so it wouldn't have made any difference to us, but I know that the price that we submitted was 30% higher than it needed to be in order to cover our TUPE obligation. Having spoken to the buyer to express my concerns they were unable to provide any evidence of the actual wages of the incumbent contractors. Sufice to say I have serious doubts that they are on annual basic salaries of £52500, £37584, £32364, even the trainee is on £20880. They also get time and a half overtime and double time on sundays.
I know these salaries are possible, but knowing that the price submited by the winning firm was not that much more than the £548 per day it seems unlikely that these are accurate figures. It is possible that the two higher salaries are the company directors, but if that is the case they will be taken as dividends and therefore not subject to TUPE.
We just have to take this on the chin but it smarts a little. Does anyone else have any experience of TUPE and or its abuse?