Nationwide Group Staff Union

A Joint Statement has been issued today about changes to the Car Ownership Scheme. A Union response to the changes will be published in Union Mail on Wednesday 7 May.

NBS05/2008

1 May 2008

Employee Involvement Statement

The Employee Involvement Committee (EIC) on behalf of Nationwide and Nationwide Group Staff Union announce the following:

Changes to the Car Ownership Scheme

A review of the Car Ownership Scheme (COS) has been undertaken to identify the most appropriate method of provisioning cars for different populations. The review took into account the financial cost to employees and the business and also strived to support our sustainability agenda by reducing CO2 emissions.

This joint statement details the action to be taken as a result of the review:

Introduction of a new company car scheme

From July 2008, a new company car scheme and policy will be introduced which will run alongside the existing COS.

Essential and Status car drivers will move to the new company car scheme at the next renewal of their vehicle. Former Portman employees who transferred to Nationwide into Levels 1 – 3, and who are due to move into the COS at vehicle renewal, will participate in the company car scheme instead.

Employees within these groups will be typically better off under the company car scheme. As the prevailing tax regime encourages use of low CO2 emission cars, all benchmark cars will be diesel with CO2 emissions below 190g per kilometre. We are currently negotiating with three manufacturers: Volkswagen, Honda and Ford.

Employees who already have a car on order or whose vehicle renewal is due before July will be given the option of participating in the company car scheme. An individual letter will be sent from Car Fleet explaining the options in more detail.

Essential Car Drivers

Eligibility for an essential user car will now solely be based on business mileage for each individual and will no longer be linked to User Groups. A vehicle may be withdrawn if an Essential driver does not meet the business mileage requirement of 10,000 miles per annum.

Under the company car scheme, the cash alternative will not be available to Essential car drivers. This is to ensure that high business mileage drivers are always in fully maintained and safe vehicles. Those employees currently taking the cash allowance will be given one year's notice to transfer to the company car scheme.

Income Generator roles

A new group of drivers has been established called Income Generators which covers a small number of Sales roles. These roles will be required to participate in the company car scheme in the same way as Essential car drivers, although the business mileage requirement of 10,000 miles per annum does not apply.

Supplementary Allowance for reaching 18,000 business miles

The supplementary allowance paid by Nationwide for reaching 18,000 business miles will cease. The allowance was introduced when the COS was first launched in 1999 to mirror the tax regime. The tax regime has now changed and means that the allowance is no longer required. The removal of this allowance also supports Nationwide's aim of reducing business mileage. The last payment will be made in June 2008.

Fuel Cards

All drivers who have purchased a car through the COS scheme or who have a company car will be required to use an Allstar fuel card. This must be used to purchase all fuel. Business mileage should be claimed in the usual way and the cost of private motoring will then be deducted monthly via payroll.

Employees currently benefiting under the existing COS will shortly receive an e-mail confirming how they will be affected and providing a link to the Car Fleet Intranet Site. Full details of the company car scheme will be communicated in July.

The Personnel Manual has been updated to reflect these changes and other minor amendments - please see the Personnel Manual update.

Tony Prestedge
Chairman
Employee Involvement
Committee (EIC)

Tim Poil
General Secretary
Nationwide Group Staff
Union (NGSU)

Employee Involvement Committee
(EIC)

Staff No.

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