Prospect secures Ericsson holiday pay deal

Prospect secures holiday pay agreement with Ericsson

After lengthy negotiations Prospect has won an agreement for enhanced holiday pay in Ericsson FSO.

Ericsson mast

On 21 March eligible Ericsson FSO employees will be able to see on their electronic payslips a new payment for enhanced holiday pay.

This payment has been agreed with Ericsson after long and difficult, but ultimately successful, negotiations led by Prospect. The union has intervened on members’ behalf repeatedly to keep this issue moving forward.

The negotiations followed a number of legal judgments, including a particular employment appeal tribunal, Bear Scotland v Fulton joined by Hertel & Amec v Woods & law and others. Claimants were successful in arguing that statutory holiday pay should include regular payments which they would usually earn while working.

These judgments built on existing case law and the European Working Time Directive, which sought to protect the principle that individuals should take their holiday and not suffer a financial detriment that could discourage them from doing so.

It has taken a great deal of work by Prospect and Ericsson to move negotiations forward. We believe we have reached an excellent agreement that predominantly provides an enhanced holiday payment to reflect overtime worked. It also includes the ex-Vodafone outdoor allowance as another non-annualised payment.

This agreement provides our members not only with back pay but also a simple, agreed mechanism for making future payments that is fair to them and which Ericsson is able to process easily.