Ericsson Internal | 2013-05-31 | Page 1

Stewart KearneyEMMA KELLY

31 May 2013

Field Operations

BT MSL – BRISTOL LOCATION

Ericsson Internal | 2013-05-31 | Page 2

Agenda› Locations

–Bristol (Aztec West)

› Population Impacted› Disturbance Payments

–Distance and Time to Office

› Measures–C3 Dispatch–Drive Testing

› Proposed Next Steps› Questions

Ericsson Internal | 2013-05-31 | Page 3

Locations post 31 May 2013

› 234 people are expected to transfer to Ericsson from BT MSL on 1 June 2013.

› The BT Relocation Policy transfers as is a Collective Agreement

› Specific locations post-transfer are:

– Dispatch team and 3 x Drive Testers to be based in Bristol (Aztec West) with any disturbance payments to be agreed with BT/CWU

– Home workers (x3) – existing contractual right to home working will be transferred across as of 1 June for the 3 identified individuals

– Location Independent Workers – our proposal is that all other people will be Location Independent Workers, as they will be working a mix of days from home and out on the road (meeting engineers or suppliers)

Ericsson Internal | 2013-05-31 | Page 4

LOCATION - Bristol

› 12 people have been identified as being contractually based at a BT office in Bristol (BS7 0BQ)

› To ensure these individuals do not suffer a material detriment when transferring from BT MSL to Ericsson, alternative serviced offices have been leased in the Bristol area (BS32 4TD)

› New location is: –Suite 42 - 45, Aztec Centre, Aztec West, Almondsbury,

Bristol, BS32 4TD

Ericsson Internal | 2013-05-31 | Page 5

› Ericsson have taken two adjacent offices on the 1st floor of the building, across the corridor from one Ericsson have been renting for several years

› Both the offices have swipe access control and the building can be accessed 24/7

› In addition to the ad hoc services provided on site there is a small kitchenette near the new offices

› Ad hoc services inside the atrium include a café, restaurant, hot and cold food shops, convenience store, and a bank

Bristol – Aztec West

Ericsson Internal | 2013-05-31 | Page 6

Bristol – Aztec West

FRONT AND ATRIUM

Ericsson Internal | 2013-05-31 | Page 7© Ericsson AB 2009 | Ericsson Internal | BT MSL Bristol Office Move| 31 May 2013

A = BT OFFICE location (Horfield, BS7 0BQ)

B = ERICSSON location (Almondsbury, BS32 4AD)

Bristol – Office Location

New Office location is

4.6 miles from

previous BT office

Ericsson Internal | 2013-05-31 | Page 8© Ericsson AB 2009 | Ericsson Internal | BT MSL Bristol Office Move| 31 May 2013

POPULATION IMPACTED

› 12 people are impacted by the move of office to Aztec West– 9 x Dispatch– 3 x Drive Test team

Lucy Dowse

Nikki Townsend

Lailah Kitching

John Marshall

Simon Tuckwell

Steven Cockle

Rhean Greaves

Charlotte Schofield

Anthony Chan

Dave Pollard

Tracy Moore

Grant Colquhoun

Ericsson Internal | 2013-05-31 | Page 9© Ericsson AB 2009 | Ericsson Internal | BT MSL Bristol Office Move| 31 May 2013

DISTURBANCE PAYMENTS

›BT Relocation Policy applied to payments:

“the ATC’s are calculated on the basis of Normal Rate Mileage for the use of your own car (where you do not receive a company car) or the company car business mileage rate (if you have a company car or are taking the cash alternative). The additional cost of travelling is calculated on the basis of 260 days (5 days a week for each week of the year). This additional amount is then doubled to take account of income tax and National Insurance contributions”

›Prior to individual consultation an initial assumption has been made that individuals will use their own car, and that it is between 1400cc and 1999cc engine

›It is our belief that no one would be eligible for a relocation payment

Ericsson Internal | 2013-05-31 | Page 10© Ericsson AB 2009 | Ericsson Internal | BT MSL Bristol Office Move| 31 May 2013

Change to Travel – Distance and Time to Office

› 7 people have a shorter journey to work

› Of the 5 with a longer journey, the additional round trip mileage ranges from 2.8 miles per day through to 13.2 miles per day

› All those people with travel of more than 30 miles one way will now have a shorter journey

One Way Time - Home to BT

office

One Way Time - Home to Bristol

office

Difference in Distance^

Difference In Time

(minutes)

Round Trip

Excess Mileage

Pence Per Mile

Travel Payment

Gross Payment

Monthly Payments x 24

Lump Sum

10 11 1.4 1 2.8 0.45 £327.60 £655.20 £27.30 £524.1642 33 -3.6 -9 -7.2 0       20 16 2.8 -4 5.6 0.45 £655.20 £1,310.40 £54.60 £1,048.326 11 2.7 5 5.4 0.45 £631.80 £1,263.60 £52.65 £1,010.8814 15 1.4 1 2.8 0.45 £327.60 £655.20 £27.30 £524.16

14 6 -3.6 -8 -7.2 0       42 33 -3.6 -9 -7.2 0       38 30 -3.6 -8 -7.2 0       35 31 -1 -4 -2 0      

15 21 6.6 6 13.2 0.45 £1,544.40 £3,088.80 £128.70 £2,471.0439 30 -0.6 -9 -1.2 0      

39 30 -3.6 -9 -7.2 0      

›^ - reference: theaa.com

Ericsson Internal | 2013-05-31 | Page 11

PRINCIPLES of Payment

› Measures were announced on 3 May (see next slides) with regards to Ericsson’s intention to:

– Continue the amalgamation of dispatch activity in the Coventry office– Restructure the Drive Test team to meet the new drive test contract

requirements and,– To look to outsource Drive Test activities to a third party provider

› Although additional travel costs will be made in accordance with the BT Relocation Policy, where:

– individual roles change, individuals would be reminded of the need to repay any additional travel costs if the lump sum option is selected, and/or

– Individuals work part time (days per week, not hours worked) payments would be made pro-rata i.e. if work 3 days per week, then payments would be 60% of total 5 day per week calculation.

Ericsson Internal | 2013-05-31 | Page 12© Ericsson AB 2009 | Ericsson Internal | X (X) | Date

Measures Letter (3 May 2013)

› Drive Testers– Due to the significantly diminished demand for drive tests across the 2 networks, the

new demand requires a workforce of 8 Drive Testers, 1 Manager and 1 Co-ordinator ….. and we will be looking at these arrangements going forward as part of the consultation process.

– It is also Ericsson’s intention within the next 12 months to investigate the possibility of out sourcing Drive Testing to a third party supplier. We do not have any further details on this at present and do not expect to have any prior to 1st June 2013. As soon as we are in a position to consult on this we will do.

› Dispatch– The amalgamation of the 3 legacy control centres into one common control centre (C3)

based in Coventry, working on a multi-customer basis…We are continuing to implement the global blue print requirements across the Field Organisation in the UK and therefore the current BTMSL employees who are in scope to TUPE transfer into Ericsson will be included in the implementation programme from SCD going forward.

Ericsson Internal | 2013-05-31 | Page 13

Proposed Next Steps

› To formally brief the team and begin individual consultation w/c 3 June

› Confirm payments on the basis of individual travel arrangements and whether the intention is to take payments over 24 months or take the lump sum payment

› All payments would be backdated to 3 June 2013

› Aim to progress consultation so that payments would commence in July payroll, where possible

Ericsson Internal | 2013-05-31 | Page 14

questions