April 20, 2007

(Aberdeen, Scotland) – FirstGroup faced intense questioning from American trade unions at a shareholders’ meeting in Aberdeen today called to approve the company’s takeover of Laidlaw International, the largest school bus operator in the U.S.

Officials of two of the biggest U.S. unions raised serious concerns about labor relations at FirstGroup’s American subsidiary, First Student, which operates more than 20,000 yellow school buses.

Pressure on the company to rein in its American managers increased when a group of influential Labor backbenchers issued a statement today calling on FirstGroup to “honor its commitment to remain neutral on the issue of union membership in its U.S. subsidiaries.

“The expertise of this company in operating bus services would normally be welcome in the USA. It would be unfortunate if its attempt to reinstate nineteenth century anti-trade union methods in the 21st century were to lead to a loss of support and confidence in the U.K. Company,” the MPs said

 A First Student bus driver, Connie Torres, from Pine Bush, New York, told the shareholder meeting: “The company has told investors and the Press that it respects workers’ democratic right to a secret ballot election.

“But after our election, where we exercised that right and voted for the union, the company rejected our decision and filed objections to the election, making it perfectly clear that the company does not want a union.

“I call on you today to protect workers’ rights to freedom of association. I call on you to hold to your word to stamp out anti-union behavior at FirstGroup.”

Martin Gilbert, FirstGroup chairman told Ms Torres: “You have my assurance on that.”

Last year, the U.K.’s largest public transport operator faced an embarrassing shareholder revolt at its annual meeting when Mr. Gilbert was forced to promise that the group would "do everything in its power" to “stamp out anti-union behavior”.

A report produced by American and British academics and employment specialists published this week concludes that the company has “failed to live up to its commitment not to interfere with its employees’ right to choose a union.”

Stephen Edwards, an SEIU official who last week visited First Student depots in New York with British and Dutch trade unions, told the shareholder meeting: “In every instance workers consistently reported that not only had management behaved in an anti-union manner in some shape or form during the election process, but also had continued to campaign against the union after the election had taken place.”

Notes to editors:

The full report, FirstGroup’s Neutrality Policy: Failed Implementation can be found at: http://org.teamster.org/firststudent/firstgroupneutralitypolicy.pdf.

Its authors are:

• Dr John Logan, a lecturer in employment relations and organizational behavior at the London School of Economics;
   
• Professor Lance Compa, a lawyer and specialist in labor and human rights law at Cornell University, New York; and
   
• Fred Feinstein, is a former General Counsel to the US National Labor Relations Board. He also served for 17 years as General Counsel to a House of Representatives labor relations committee

Further information:

• Tommy Campbell, T&G, Aberdeen 01224 645271, 07810 157920
• Professor Lance Compa, Cornell University, 001 607 255 7314
• Connie Torres (in Aberdeen) 001 202 409 4148, 001 202 297 5888
• Alen Mathewson 07977 109 666 (for MPs’ statement)