Changes to Temporary Furlough Leave Arrangements
The ongoing and increasing challenges that CEMEX is facing as a result of the Coronavirus pandemic have required us to review the arrangements for furlough leave. We had previously communicated that CEMEX would ‘top-up’ the grant that we expect to receive from the UK Government’s Coronavirus Job Retention Scheme so that employees on furlough leave receive 100% basic pay, subject to regular review.
Unfortunately, as the situation becomes increasingly challenging, we are having to make some difficult decisions. With effect from 1st May 2020, the top-up to 100% basic pay will not continue and anyone already on furlough leave, or who goes onto furlough leave after this date will be paid more closely in line with the government scheme. From 1st May everyone on furlough leave will receive at least 80% basic pay, and in many cases, this is more generous than the government scheme; again, this arrangement will be kept under review. This means that a greater proportion of salary costs can be covered by the grant than the Company expects to receive under the government scheme, which will help our cashflow.
On Tuesday 21st April this revision was discussed with Employee Representatives in a UK Communications Forum call and also with Union Officials before managers immediately started to contact employees who are on furlough leave, so that the changes could be explained and discussed with them. Details have been confirmed in a letter to furloughed employees.
Annual Leave Requirements
As we near the halfway point in the year, please check the amount of annual leave you have taken so far. It is important for everyone to spread annual leave proportionally throughout the year to avoid any issues in the second half of 2020 which may impact the business. Therefore, with the exception of employees who work shifts in cement operations and have a separate arrangement, all employees must have taken at least one week of their 2020 annual leave entitlement by the end of June. Follow the normal procedure for booking annual leave and confirm your chosen days of annual leave with your manager.
This applies to employees who are on furlough leave (they will receive full pay for holidays taken on furlough) as well as those still at work.
Salary Deferral Programme Launch
Yesterday a communication was sent asking UK employees to participate in a voluntary salary deferral, as a mitigation measure to protect the future of the business and ensure we are in the strongest position possible to recover from the impact of the Coronavirus pandemic. In summary, CEMEX is asking for your help and support by agreeing to participate in a global salary deferral programme as recently announced by our CEO Fernando Gonzalez. This involves your agreement to defer 10% of your salary for May, June and July, on the understanding that this will be paid to you in December.
The scheme is completely voluntary, and your response will remain confidential. If you agree, this will affect the pay you will receive on 1st June, 1st July and 3rd August 2020 and you will be paid the deferred amount on 1st December 2020 as part of the November payroll.
Employees who are on furlough leave are not being asked to participate. If anyone goes onto furlough after signing up for the programme, we will stop the deferrals and pay them the amount they have deferred, rather than waiting until December.
Also, if anyone who volunteers leaves CEMEX for any reason before December, we will pay the deferred amount in their final salary.
Unfortunately, as this is a global scheme, we are not able to be more flexible with the % pay that people defer or the period of deferral.
Please complete the form here with your decision by 1st May 2020. If you cannot access the link, either complete the form: https://cemexuknews.co.uk/downloads or email gb-hrcentraladmin@cemex.com with your details.
It would really help us if you could use the link if you have a work desktop or laptop.
If you have any questions about any of the matters discussed in this communication, please contact your line manager or HR Business Partner.