PRESS DIGEST - British Sunday business - May 31

The Independent on Sunday

TRAVELPORT'S FIVE PER CENT WAGE CUTS ARE DISGRACEFUL, SAYS UNION

The Transport Salaried Staffs' Association, the UK's biggest travel union, has described pay cuts at Gullivers Travel Associates as a "disgrace". GTA, a division of Travelport, says that over 90 per cent of its 2,400 worldwide workforce have accepted a five per cent pay cut, but the union argues that some companies were using the recession as "an excuse to cut pay". A GTA spokesman said that "small minority" of UK staff had not volunteered to reduce their pay and added that the cuts would "protect the livelihoods of employees at GTA."

TRAVEL FIRMS 'WON'T PAY LEVY'

Tour operators Thomas Cook (TCG.L) and TUI (TT.L) are set to stop paying the one pound consumer protection levy on package deals in protest at the government's bid to raise the amount to three pounds. The move will come just weeks before Geoff Hoon, the secretary of state for transport, is expected to wave through the increase. The development could cause confusion amongst consumers who are likely to be unaware that they are not covered in the event that either company collapses.

ESPORTA TO GET NEW CHAIRMAN

Richard Segal, former chief executive of online gambling group PartyGaming (PRTY.L), is believed to have been appointed executive chairman of Esporta. Societe Generale (SOGN.PA), the main creditor of the ailing fitness club chain, has been seeking to install a chairman to work alongside chief executive Glenn Timms, and improve communications between to the two sides. A formal announcement is expected in the next two weeks. SocGen declined to comment on the matter.

The Observer

CAMELOT BETS ON GROWTH OF CONTROVERSIAL SCRATCHCARDS

National Lottery operator Camelot has increased the commission it pays to retailers on scratchcards by 20 percent in an effort to boost sales growth and returns to "good causes". However, gambling campaign groups raised concerns about the possible link between underage gambling and scratchcards. David Bradwell, policy officer for the Methodist Church, expressed concern that the branding of cards with popular films makes them more attractive to children. The National Lottery Commission points to research showing that scratchcards are "not listed among the forms of gambling which pose a problem for people."

LLOYDS FACES SHAREHOLDER BACKLASH ON BOARD PAY

Lloyds Banking Group (LLOY.L) is set to clash with its shareholders over awards of shares for its top management team and their performance criteria. City investors are considering voting against the group's remuneration report or abstaining in protest against the plans at a general meeting on Friday. Under the scheme, shares are to be awarded to chief executive Eric Daniels and other team members of the executive team. UK Financial Investments, which handles the taxpayers' 43 percent stake in the bank, has yet to decide how to vote. The association of British Insurers has issued an "amber top" alert ahead of the meeting.

PHONE FIRMS SET TO MEET CARTER IN BID TO SALVAGE BROADBAND DEAL

The UK's five mobile phone networks will meet Lord Carter on Tuesday with a view to reaching a deal that would rescue the communication minister's plan of providing everyone in the UK with access to broadband internet by 2012. The move follows proposals by Carter's lieutenant, Kip Meek, to cap the amount of spectrum owned by Vodafone (VOD.L) and O2, and devoting to mobile broadband the capacity made available by switching off the analogue TV signal. Orange (FTE.PA), T-Mobile (DTEGn.DE) and another operator 3 object to the fact that their rivals, Vodafone and O2, will be given early access to the spectrum. They also wish for tighter caps for the two companies so that they will have to offload some of their existing slice of the airwaves before acquiring any spare TV capacity. Failure to reach a deal would mean Carter would have to give up 2012 timetable.

Prepared for Reuters by Durrants