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Capita Re – redundancy consultation in Highways Services
On Monday 8 September 2014 UNISON members working for Capita Re Highways section were informed that statutory redundancy consultation would commence on 10 September 2014. Capita Re have carried out a review of the Highways function against the output specification that forms part of the contract with the London borough of Barnet.
The proposal was that they can make efficiencies by changing work practices and use of technology alongside the need to reduce costs circa £65k with a reduction in the Highways fee by Barnet Council as from July 2014.
Capita Re currently employs 284 staff.
The current staffing establishment for Highways is 23 staff and all of them have been issued at risk of redundancy letters.
The proposal seeks to make 10 redundancies and create six new posts. However, the six new posts are not redeployment opportunities for the staff at risk.
Over the past few weeks meetings have been taking place with staff as they are having to go through an interview selection process.
UNISON has requested some detailed financial information about the proposed shortfall in funding and expressed concern about the ability of the service to deliver the service with reduced numbers of staff.
UNISON members have expressed concern and disappointment that when Barnet Council Cabinet Committee agreed to the award the DRS contract to Capita on Monday 24 June 2013 they did so in the knowledge that this was a contract which would grow and there would not be any redundancies.
As members have pointed out in Table 7.1 DRS Staff Numbers
of the report the Highways Teams are down to increase not decrease.
Update
Last week the Trade Unions were informed that Capita Re would be extending the consultation period. The reason being Capita Re had been summoned to attend the Environment Committee members briefing on 2 October at 7 pm Hendon Town Hall.
UNISON will be attending the above meeting in order to find out if there are any proposals which may mean the redundancy proposals will be withdrawn.
Urgent feedback on ACAS/Your Choice Barnet meeting
Urgent feedback on ACAS/Your Choice Barnet meeting
Dear Colleagues
At our meeting on Monday 22 September at ACAS HQ UNISON raised a concern that Your Choice Barnet (YCB) was being unfairly treated by Barnet Council.
I am referring to the Pension employer contributions YCB has to make to all members of the Local Government Pension.
For council staff the Pension contributions can be broken down into three parts
Employee contribution variable % depending on salary level.
Employer contribution 14.5 % for future benefits.
Employer contribution 9.8% for past Pension Deficit
The total amount paid by the employer equates to 24.3%.
Barnet UNISON has been investigating what has been happening in relation to Pension contributions since mass outsourcing started in early 2012.
What we have found is that YCB is having to pay 9.8% contribution towards the historic pension deficit accrued prior to outsourcing.
It is clear that this financial burden seriously inhibits the financial viability of YCB and does not reflect the true economic conditions for delivering the service.
In short the Council is imposing a cost on YCB which is not directly related to the service they are providing.
It is well documented that YCB is in financial difficulties otherwise why would they have had to attack low paid care workers on two occasions in the last 18 months.
To learn that the Council has chosen to impose another financial penalty on YCB when it has such a precarious financial situation is difficult to understand, which is why we have requested Barnet Council to remove this requirement.
Private sector being given favourable treatment.
Our investigations have revealed the following three private contractors, who won contracts to deliver services in Barnet, are not having to pay this 9.8% penalty.
NSL – Pension Fund Committee, 20 December 2011 at paragraph 6.3 it states:
“NSL will become an admitted body to the Pension Fund under a closed agreement. The agreement will be fully funded at the point of transfer and the contractor will pick up employer pension costs associated with future liabilities. Provision has been made in the business case both for the costs associated with a pension bond, and also for costs that the Council will retain in respect of the past deficit for these employees.”
Capita Re – Pension Fund Committee 9 September 2013 at paragraph 6.4 it states:
“The joint venture will pay the future contribution rate to meet any pension fund liabilities. The council has retained the element of the budget that pays for the repayment of the past service pension fund deficit.”
OSC – Pensions Fund Committee 18 March 2014 at paragraph 7.2 it states:
“Staff will transfer on a “fully funded basis”. This means that the pensions’ deficit will not transfer to OCS from Barnet in respect of these staff. The total deficit retained by Barnet has been calculated at £98k. £25k per annum needs to be retained from Adults and Communities budget to fund the repayment of the deficit over the lifetime of the contract.”
We are in the middle of a dispute over the 9.5% pay cut imposed on our members working for YCB. The knowledge that yet again the private sector is being treated more favourably than YCB is inexcusable.
If Barnet Council were to do the right thing and treat YCB like they have done with Capita, the 9.5% pay cut would be wiped out and the dispute would be over. It is that simple.
We have written to Barnet Council asking them to consider our request and do the right thing for the services and the loyal hard working low paid care staff who provide excellent services.
Hourly rate League table – Consultants rates not included yet
All this talk about Austerity and minimum wage… ..
Hourly rate league table
Chair of a Barnet Council area sub committee is £2,213/hr.
Chair of Barnet Council Housing committee is £1,916 – £1,278/hr
Chair of Barnet Council residents forum is £296/hr
Cleaner is paid £6.31/hr to clean Barnet Council offices & Schools.
UNISON to attend crisis talks at ACAS HQ – YOUR CHOICE BARNET
1. Barnet Homes writes off the £1 million loan.
2. Barnet Council stop penalising YCB for ‘no shows’.
3. Barnet Council pays up front to YCB in order to help the cash flow situation.
4. Barnet Council pays the going rate for the services being offered.
5. Barnet Council conducts an immediate investigation as to why Adult Social care services have referred only a handful of referrals in the last 2 and half years.
6. Senior management and other Service Level Agreement costs imposed on YCB are reduced.
7. YCB & Barnet Council find a more efficient way to invoice for services. The current arrangement is that Barnet Group invoice Barnet Council then YCB invoice Barnet Group.
8. YCB is allowed to independently procure its own support services and not be forced to use Capita CSG services.
It is critical that the sole shareholder attends these critical ACAS talks.
UNISON Branch Secretary John Burgess said:
“Barnet Council is the sole shareholder of Your Choice Barnet and as such they should attend talks with UNISON, YCB and ACAS. If the Council want to genuinely end this then they have to stop hiding behind political ideology and recognise YCB is in a financial crisis. Anyone looking at the books will see that. The silence over the £1million loan is deafening. We have submitted our proposals onto the negotiating table and it is for Barnet Council to respond.”
UNISON general Secretary on Your Choice Barnet Dispute
Labour councillors call on Barnet Council to attend talks with ACAS
We would like to express our solidarity with YCB workers who are resisting cuts to their wages of nearly 10%.
We met with YCB workers on the picket lines and they told what the devastating impact these pay cuts would mean for them, their families and also the service users. They are also concerned that this will be only the first of a series of attacks
When the Council’s Cabinet Resources Committee approved the setting-up of YCB in 2012, it stated that:
“The obligations and risk placed on the LATC will subsequently be fully passed down to the operating subsidiary companies. Commercial risk ultimately remains with the Council and in the unlikely event of failure, the services will need to be brought back in-house.”
We therefore call upon Barnet Council as the only share holder in the Barnet Group and therefore the owner of YCB to intervene urgently to save YCB and ensure that care staff are not subjected to this savage wage cut. We have also written to the Leader of the Council to instruct a representative of the Council to attend the ACAS talks on Monday 22nd September, and help to bring the dispute to a satisfactory resolution, for the sake of staff and service users alike.”
Cllr. Amy Trevethan, Labour Parliamentary Candidate for Chipping Barnet and Underhill Councillor and
Cllr. Paul Edwards Underhill Councillor
Andrew Dismore – on real Loyalty – Your Choice Barnet
“It is outrageous that Your Choice Barnet is cutting care workers’ pay by 9.5%. These dedicated workers are not paid nearly enough to start with, and pay cuts like this are a kick in the face to these hardworking staff who do a demanding job, that most people would find they could not do nearly as well or as cheerfully.
YCB talks about loyalty- but YCB workers in this desperate dispute for justice show what real loyalty means. Not sham ‘loyalty’ out of fear of hardship to a heartless and exploitative ‘rip off’ boss, but loyalty to their clients who need a decent service for which decent pay should be awarded; and loyalty to each other, through their solidarity and support for their union backed by its members, including myself, who are standing side by side with YCB workers in their fight for a fair settlement .’
Best
Andrew Dismore
Labour Parliamentary candidate for Hendon
London Assembly Member for Barnet and Camden
YCB & Care UK brothers and sisters in arms
Breaking News in-house services back in contention
Breaking News in-house services back in contention
Dear Colleagues
Last night I attended the Children’s, Education, Libraries and Safeguarding Committee. This committee was being asked to recommend reject the in house service option and develop three outsourcing options.
Barnet UNISON presented a report (see attachment) to all of the councillors on this Committee for them to consider. In case I was asked to comment on our report I prepared a speech (see attached) to the Committee.
Our report made the following recommendations:
Recommendations
1. Barnet UNISON recommends a fully resourced innovative in-house option be included alongside further development of the schools-led social enterprise option. The two joint venture options should be rejected together with the outsourcing and LATC options.
2. School catering is a highly successful income generating service serving 90% of schools in Barnet, in which all surpluses directly benefits schools. It should be excluded from the scope of the project.
3. If the Committee recommends continuing the JVC options, then Capita should be approached and asked not to bid for the education and skills contract.
4. Before the Committee make any decisions the Performance and quality category weighting should be increased from 20% to 40% with a 10% reduction in the category weightings for Strategic Direction and Cost Saving.
Who were the contractors mentioned in the Council report?
In the Council report there is reference to discussions with the private sector some of whom suggested adding Early Years and Libraries in this bundle of services. In the meeting we were informed of the names of these contractors
What happened next was a surprise.
As the item opened up for discussion Labour Councillors proposed that the in-house option be included with the other outsourcing options.
The Deputy Leader of the Council disagreed with the wording of the Labour motion and proposed an amendment of recommendation 3 of the council report which added and the in-house service.
This amendment was put to the vote and all councillors voted in favour of in-house.
Several of us in the room fell of our chairs as this is the first time councillors have insisted that the in-house be included in a report on outsourcing proposals.
I will be writing formally to the Council seeking urgent talks as to how the in-house service is going to be resourced and supported in putting together a business case to deliver Education & Skills & Catering service in-house.
I will be organising meetings for all of our members between now and the end of the year. Please keep a look out for updates.