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Secondment versus Joint Employment on Capita Symonds DRS contract

Over the past two weeks almost 50% of staff working in DRS have been attending what are referred to as ‘joint employment’ workshops. One of the critical proposals of the privatisation of DRS to Capita Symonds are joint employment contracts for the above staff. UNISON is currently carrying out an online survey of our members on this matter, but one consistent question is emerging i.e. “Why not use secondment?”

The responses to this question from staff are that the One Barnet contract is too long for a secondment (it is a 10 year contract with an option for a five years) and the Council has been advised that secondment is unlawful.

In response to this staff have referred to the privatisation of similar services to Capita Symonds earlier this year at North Tyneside Council (see here). This is a longer 15 year contract and secondment was chosen as the employment model for those staff carrying out enforcement.

Staff quite understandably are questioning this legal advice as they believe that joint employment is a much higher risk of challenge of their enforcement decisions by residents and or business than if they were still employed directly by Barnet Council via secondment. Furthermore they do not understand if it is unlawful to second staff to carry out enforcement in Barnet it must be unlawful to do the same in North Tyneside?

The UNSION and staff position on this matter was that we would support secondment as an employment option as we have done for other Barnet staff that are still on secondment beyond ten years  

It seems legal advice is very much under scrutiny at the moment.

“Hospitals accuse Capita of failings.”

Some of the failings are reported as:

• M overpaying staff, with trusts having problems recovering the monies paid out;
• M breaching data protection by sending staff personal details to other employees;
• M paying someone due to start work two months’ salary, despite their dropping out of the recruitment process;
• M delays in pre- employment checks, leading to highly valuable candi­dates withdrawing their application for a job;
• M losing sensitive and confidential information

“The audit report was said to contain a “damning assessment of Capita’s performance of the contract” with failings in a number of areas.”

You can read more here and here and the minutes here

There has been and will be a lot going on in the former borough of Barnet. Barnet Council has embarked on a mass outsourcing programme which has resulted in services being transferred out of council control. This strategy is high risk and many critics are arguing that there will be no going back in the event of service delivery failure. The loss of control of infrastructure mean it would be financially impossible for the Council to step in and take control, the costs to the tax payer would be too high and political suicide for any party wanting to take back control.

In Barnet there is a vibrant community willing and able to try and scrutinise decision making in Hendon Town Hall.

The following organisations have already taken over services in the last 16 months

·         NSL – Parking

·         Your Choice – Services for adults with disabilities

·         Harrow Council – have taken over the council’s legal department

·         Barnet Homes- taken over Housing workers

·         Two massive contracts have recently been won by Capita. However as a result of a challenge from disability rights campaigner Maria Nash the transfer of these services has been put on hold until the outcome of the JR Appeal in the Court of Appeal on Monday 15 July.

Each week we will produce the Top Ten stories from the former London Borough of Barnet picked from local newspapers, Blogs and local websites.

1. “Barnet Council Cabinet Meeting 24/6/2013 – Democracy in Action?”

http://barneteye.blogspot.co.uk/2013/06/barnet-council-cabinet-meeting-2462013_25.html

2. “Barnet Cabinet – Just not listening”

http://reasonablenewbarnet.blogspot.co.uk/2013/06/barnet-cabinet-just-not-listening.html

3. “The Golden Share – or: words have meanings – Cabinet meeting Part Two”

http://wwwbrokenbarnet.blogspot.co.uk/2013/06/the-golden-share-or-words-have-meanings.html

4. “Crossovers – crossed wires”

http://lbbspending.blogspot.co.uk/2013/06/crossovers-crossed-wires.html

 

5. “Barnet Council in the dock #1: CPZ Action”

http://citizenbarnet.blogspot.co.uk/2013/06/barnet-council-in-dock-1-cpz-action.html

6. “Your Choice Barnet – all on hold? Yes? No?”

http://www.barnetunison.me.uk/?q=node/1236

7. “Tory councillor slams lack of scrutiny after care home contract awarded despite resident death”

http://www.barnet-today.co.uk/News.cfm?id=21047&headline=Tory

8. “Somali Bravanese Welfare Association hosts annual thanksgiving in North London Business Park”

http://www.times-series.co.uk/news/10516882.Community_centre_destroyed_by_fire_holds_thanksgiving_event/?ref=mr

9” “ ‘One Barnet’ Council On Trial”.

http://barnetalliance.org/2013/06/12/agm-one-barnet-council-on-trial/

10. “Your Choice Barnet U-Turn after receiving notice of a potential legal challenge”

http://barnetalliance.org/2013/06/17/your-choice-barnet-u-turn-after-receiving-notice-of-a-potential-legal-challenge/

 

 

 

25 June 2013

Dear Kelly  

Re: Response to your Measures letter dated 24 May 2013.

Thank you for your Final Measures letter which outlines the significant Measures to be implemented after TUPE transfer. This response also refers to previous Measures letters dated 7 January and 25 March 2013 (see enclosed).

As per the TUPE Regulations whilst some information has been provided to the Trade Union during the pre TUPE consultation, it is simply not possible for UNISON as per the requirements under the TUPE Regulations to be in a position to be able appraise the suitability of the Capita Business Case solution without detailed financial and commercial data.

In the absence of the above information it is still UNISON’s view that whilst you are seeking to relocate services out of the borough we think you should look at keeping services in Barnet.

To view full response click here 

Tomorrow Tuesday 11th June at 7pm the Budget and Performance Overview and Scrutiny Committee meet to discuss the DRS business case. It is a public meeting so anyone can attend. I can report that over 133 questions have been submitted to this Scrutiny committee which is the largest number of questions I have ever seen submitted to a committee.

You can read the questions HERE

FOR IMMEDIATE RELEASE: 6 June 2013

 

On Tuesday 11 June 2013 Barnet Council’s Budget and Performance Overview and Scrutiny Committee are to scrutinise the headline grabbing One Barnet Development Regulatory Services (DRS) contract award to Capita Symonds Ltd (Capita). This is the second big One Barnet contract Capita will have won from the council in less than six months.

 

Regulatory Services covers a range of key functions Barnet residents and government consider essential – including maintaining local roads, determining planning applications, enforcing trading standards and food safety – the function of many of these services is to regulate commercial operators in the public interest. 

 

Undoubtedly a key factor in the decision to award the contract to Capita is the claim of £39.1 million of “guaranteed financial benefits” over the lifetime of the 10 year contract.

 

But as the old saying goes “If it looks too good to be true, then it is probably is.” – the key to everything is in the detail.

 

Of the £39.1million “guaranteed financial benefits”¹ only a seventh (£5.3m) is cost savings which is significantly less than the Council’s own 2011 Business Case which claimed cost savings of £19,703,105.

 

The lower Capita cost savings represents a little over £0.5m annual savings.

 

This leaves £33.8 million (86%) of the “guaranteed financial benefits” dependent on winning new business.

 

The report states “Capita Symonds’ proposal for a greater use of automated and web self-service channels and social media may negatively affect certain groups with protected characteristics as there is a risk that they may not directly benefit from these improvements.”  These groups, which include older adults, disabled and vulnerable residents make up a large proportion of the borough’s population and many may feel alienated by these service ‘improvements’.

 

The Capita contract being recommended is entirely dependent on increasing fees and charges to Barnet residents and businesses with the clear intention to seek more work from outside the borough.

 

Our members working across these services are fearful that the Easy Council approach to delivering services will emerge with additional fees/charges if you want to ‘jump the queue’ for services. Is this an indirect stealth tax for council tax payers and local businesses?

 

John Burgess UNISON Branch Secretary said “Should the Council be dabbling in risky business ventures, or should it concentrate on simply providing high-quality value for money services that the people of Barnet expect and deserve? In the current stark economic climate questions need to be asked by councillors at the forthcoming scrutiny committee as to the wisdom of supporting something which is critically dependent on 86% income growth to succeed and where there is no evidence of any other local authorities having expressed an intention of joining the Joint Venture so far.”

 

¹ These Financial Benefits are not necessarily cashable savings which can be realised in cash terms.

 

***** Ends *****

 

Links

 

1. What is One Barnet watch this short animation http://ning.it/Qp5Adx

2. UNISON report on One Barnet DRS contract http://ning.it/11OQWlQ

3. UNISON financial report on One Barnet DRS contract http://ning.it/12mocvO

4. One hundred PLUS reasons why One Barnet is high risk and bad for residents and services http://ning.it/NAyJLY

5. 397 jobs “The true cost of One Barnet outsourcing” http://ning.it/11OSuMT

FOR IMMEDIATE RELEASE: ‘Capitaville’-Capita to takeover more Barnet Council services.

Today staff were told at a series of briefings that Capita Symonds is the preferred bidder to deliver a whole range of Council Regulatory services to Barnet residents and businesses.

 The services to be handed over to Capita include the following:

Trading Standards & Licensing, Land Charges, Planning & Development, Building Control & Structures, Environmental Health, Highways Strategy, Highways Network Management, Highways Traffic & Development, Highways Transport & Regeneration, Strategic Planning & Regeneration, Hendon Cemetery & Crematoria

Barnet Council has a number of statutory responsibilities to monitor the private sector in order to ensure the health and safety of their residents. The recent high- profile national public-health scandal about the use of Horsemeat in processed foods emphasises that private companies do not adequately monitor their own activities, leaving the public at risk. If Barnet Council is allowed to privatise these services, it will set a dangerous precedent for other councils.

Barnet Council has been promoting itself as an innovator for the future of public services by adopting the Commissioning Council model. In the last 12 months the Council has overseen a significant number of services outsourced to other providers. The full list of services are here.

John Burgess UNISON Branch Secretary said: “Barnet Council is making a huge mistake in handing over these critical services to the private sector. It is not just about the risks this brings but what it means in term of democratic accountability. Next year we have the local elections in May 2014. What options will there be for the electorate if all the council spend is tied up into complex contracts? As for all the remaining staff the message is stark: no matter how loyal you are, no matter how hard you work political dogma is dictating all services are to be outsourced. Today a number of our members have chosen to wear black armbands/ black clothing as a sign of the demise of the public sector ethos in Barnet Council.”

***** Ends *****

Notes to Editors.

Contact details: John Burgess Barnet UNISON on 07738389569 or 0208 359 2088 or email: john.burgess@barnetunison.org.uk

Links

1. What is One Barnet watch this short animation http://ning.it/Qp5Adx

2. UNISON report on One Barnet DRS contract http://ning.it/11OQWlQ

3. UNISON financial report on One Barnet DRS contract http://ning.it/12mocvO

4. One hundred PLUS reasons why One Barnet is high risk and bad for residents and services http://ning.it/NAyJLY

5. 397 jobs “The true cost of One Barnet outsourcing” http://ning.it/11OSuMT

 

 

 

 

 

Dear Colleagues

Please find below an update on the Tripartite TUPE consultation with Capita to date:

1. Transfer Date

As a result of the Judicial Review the date of transfer was moved from 1 April to 1 May. The Council and Capita are currently making plans for a possible transfer date of 1 May. However this is dependent on the outcome of the JR.

2. TUPE List – which posts are transferring

Throughout the Tripartite TUPE consultation meetings we have been seeking to establish which posts are transferring and the business reasons for jobs being exported out of the borough. On 18 March 2013 UNISON submitted the following communication to Capita.

Dear Capita

“In the Measures letter dated 7 January Capita refer to a number of service delivery relocations.

I am requesting information about the Capita proposal to restructure & relocate Council Services. In order that I can begin to understand the measures outlined in the letter dated 7 January I have produced a spreadsheet for Council Services, using the TUPE list information provided to the Trade Unions 7 January 2013 by the London Borough of Barnet.

Our spreadsheets simply ask you to provide two key pieces of information for UNISON to begin to comply with the TUPE regulations.

Workplace location

Please state which posts are being relocated and which are remaining in Barnet.

Redundancy Risk for those remaining in Barnet

It is clear in the Measures letter dated 7 January 2013 (view here) that there are posts at risk of redundancy as a result of a restructure as opposed to relocation. Please state if the any of the posts are at risk of redundancy as a result of a restructure.”

UPDATE: Although we have now had a second Measures letter (view here), it does not provide the details we have requested and we have sought a response to our correspondence for posts across all eight service areas.

3. Second TUPE consultation communication with Capita

In order we can understand the service business model for relocating services out of the borough on 18 March 2013 UNISON submitted the following request to Capita:

“Dear Capita

I am writing to put on record some of the concerns I have been expressing in the tripartite meetings and in subsequent follow up emails about the current lack of detail about some of the proposed measures identified in the Capita ‘Measures’ letter dated 7 January 2013. 

In the January ‘Measures’ letter Capita propose to change the pay date for the staff transferring to Capita. Capita helpfully commit that no employee will experience any financial detriment as a consequence of this measure. I welcome that response. It was agreed in a subsequent meeting held on Wednesday 6 March 2013 that you would provide an example of how you intend to ensure this commitment. Please can you provide the example referred to in our meeting?

Office Relocation Measure

In the Capita ‘Measures’ letter, Capita are proposing a significant measure which will see hundreds of posts transferred out of the London Borough of Barnet. Regulation 13 places a duty on Capita to provide information to the appropriate representatives and to consult with the appropriate representatives with a view to seeking an agreement. 

For the record we are not seeking to enter into the formal consultation process which will take place after the TUPE transfer, we are however trying to understand the scale and scope of your proposed measure to transfer services out of the borough. We have asked in the tripartite meetings for disclosure of all the documents you have produced which led to you justifying the service solution to relocate services out of the London Borough of Barnet, most recently on Monday 11 March 2013.

To date it is our contention that the above duty has not been met (in relation to relocation) in that insufficient information has been provided to the Trade Unions to allow us to make representations to Capita as specified in Regulation 13(7).

I am therefore asking for disclosure of all the documents you have produced which led to you justifying the service solution to relocate services out of the London Borough of Barnet.”

UPDATE: Although we have now had a second Measures letter, it does not provide the details we have requested and we have therefore sought a response to our correspondence for posts across all eight service areas.

4. Second Measures Letter

You should have all seen the Second Measures letter (view here). Unlike the first Measures letter it provides actual number of posts as opposed to full time equivalents (FTE) which is very different. UNISON will be formally responding but we have already made the following comments

·         FTE

The Trade Unions have asked that a column be added showing the total FTE for each of the eight services. This has been agreed.

·         Revenues & Benefits

UNISON notes the numbers of posts remaining in Barnet has been increased significantly from 2FTE to 28 posts. This is welcome news and we will continue to challenge Capita to seek ways in which posts can remain within Barnet and therefore reduce the loss of employment opportunities within our borough.

·         Role Reductions

This is a new column and is connected to the recent service staff briefing presentations. UNISON had picked up on the previous Measure letter that there were missing figures. These post deletions are relating to the transformation process after transfer which may or may not be related to the relocation consultations. UNISON is concerned to note that 207 posts are at risk of redundancy.

·         Relocation of Services

The number of posts being relocated out of the borough has been reduced slightly (it is now 176 posts at risk of redundancy) but it is still a significant number. UNISON is seeking further information as required in the TUPE regulations in order we can consult with our members and respond to Capita.

·         Reducing the number of posts lost to the borough

There are currently 385 posts at risk of being lost to the borough. UNISON along with GMB are seeking to negotiate with Capita other service delivery options to the proposals identified in both Measures letters.

 

5. Policies and Procedures – Staff Handbook

You may be aware that Capita have been publishing what is known as a Terms & Conditions matrix which sets out all the Councils Policies & Procedures. This would have been referred to in your TUPE meetings with HR as the staff handbook. The Matrix has been set out in three colours Red, Amber, Green. It is important to note that the policies in Red and Green will not change when you transfer to Capita

It is the Policies in Amber I want to bring to your attention as these are either changing or being amended to reflect the process carried out by Capita.

6. Suitable Alternative Employment (SAE)

This has been a critical subject for consultation as it will have an impact on our members entitlement to redundancy and their ability to find another job. The latest version of Capita’s Principles of Suitable Alternative Employment and Redeployment can be viewed here.

It is important to note there is a big difference between Suitable Alternative Employment & Alternative Employment options. If you need further information or have any concerns please come along to the next UNISON NSCSO meetings which are taking place on Monday 15 April 12 noon in Oak Room. 

***PLEASE NOTE***

Please note the following schedule of UNISON NSCSO/DRS meeting

Tuesday 30 April 1pm Oak Room

Tuesday 21 May 1pm in Oak Room

Links:

Capita First Measures letter 7 January 2013

http://www.barnetunison.me.uk/sites/default/files/Pre%20ConsultationMeasures%20Letter%20V3%20070113%20to%20TUs%2007%2001%2013.pdf

Capita second Measures letter 25 March 2013

http://www.barnetunison.me.uk/sites/default/files/Mid%20Point%20ConsultationMeasures%20Letter%20V5%20250313_0.pdf

Capita’s Principles of Suitable Alternative Employment and Redeployment April 2014

http://www.barnetunison.me.uk/sites/default/files/Capita’s%20Principles%20of%20Suitable%20Alternative%20Employment%20and%20Redeployment%20v4.pdf

 

 

 

 

Throughout the TUPE consultation process Capita have submitted two Measures letters.

The first submitted 7 January 2013 can be found here 

The second submitted 25 March 2013 can be found here

The latest version of Capita’s Principles of Suitable Alternative Employment and Redeployment can be found here