Water Workers
Dated November 2016
OFWAT
Later this year OFWAT is set to issue yet another consultation looking at how it can drive companies to deliver outcomes that customers allegedly want through incentive mechanisms like outcome delivery incentives. All water companies have to consult with their customers on setting stretching performance commitments, OFWAT use outcome delivery incentives to focus companies’ minds on delivering on their targets as there is no real competitive pressure on the privatised industry.
The incentives are set to reward performance that beats stretching commitments and penalise performance that falls short. Each time a company meets or beats a commitment that sets a new, higher baseline for what is required of them in the future. Although its supposed to continually drive-up performance to give customers a better service no consideration is given to the impact on the jobs, pay or pensions of employees who typically suffer the slings and arrows of OFWAT ‘s outrageous determinations.
RETAIL SEPERATION
GMB recently slammed new proposals by Ofwat to open the retail water market in England to more competition with the potential of banks and supermarkets controlling our water supply, Water is a natural monopoly and market” the truth is that Ofwat are fiddling with competition and market reforms in a monopoly water industry as Britain continues to flood and consumers and workers are ripped off.
The government’s national programme is called “open water” it will allow non-household businesses, charity and public service customers to choose their water and waste water retailer regardless of location similar to other utility markets such as telecoms electricity and gas, You would think Ofwat would learn from the farce in the energy sector.
Retailers will buy the physical supply of water and or removal of wastewater services from wholesalers and provide these services to their non-household customers along with retail services such as billing water meter reading and customer service. Our water supply could be put in the hands of supermarkets, banks, or any other Tom, Dick or Harry who wants to have a go at selling our natural resource with all the risks to public health that may entail.
There are currently around 1.2 million non-household customers across the industry that will be able to switch retailer from next April 2017, household customers will continue to receive all water services directly from existing supplier until at least 2020 but there are plans to open up the whole industry to competition. Most water companies are choosing to set up separate businesses (retail separation) which will impact on some employees who may in some cases find the area of business they work in being transferred to different premises or other parts of the country. A change in the law also means all water utilities became responsible for private pumping stations (PPS) from 1 October this year.
NORTHUMBRIAN WATER
GMB stewards were advised at a meeting in June that the employer intended to offer new employees significantly inferior Terms and Conditions than those negotiated by GMB over many years for existing members, the potential impact of new employees working alongside existing members on more flexible contracts and inferior T&C’s would have had a severe and negative impact on our bargaining power in the future. GMB made it very clear that we are opposed to the proposals and wrote to the employer advising them that we regard this as an attack on the collective bargaining machinery and an attack on the recognised trade unions. The full time officers met with the employer and the proposals were taken off the table for now, however we have been made aware that Northumbrian water managers have been required by their owner CKI to save £30million over the next amp period which seems to us to be an impossible task without impacting on jobs and customer service.
As part of their program of retail separation some jobs are in the process of transferring from Essex and Suffolk to Northumbria and vice-versa; around 170 employees across the business opted for voluntary redundancy while others are being offered retraining for different roles.
THAMES WATER
A claim of 3.9% was submitted on behalf of union members; a series of site visits and ballots where possible resulted in an offer of 2.1% being rejected by members. Initially the employer made threats to impose the offer, GMB’s national officer wrote to the non-executive directors asking them to intervene, but the approach was seemingly undermined by unison who pulled away from the trade unions joint approach.
A subsequent slightly amended offer was made which was also narrowly rejected by GMB and Unite members but Unison members apparently accepted the offer by a large majority which swayed the aggregated vote to accept. Overall GMB members voted 56% to reject the offer.
GMB is surprised at this result given all Unions were committed to a neutral stance on the offer however Unison balloted their members electronically and the program gave a 'running votes' tally which may have had an influence. Overall Union members voted very narrowly by 52.7% to accept the pay offer for 2016.
This is a valuable lesson for GMB members on the importance of voting and will give Rep's something to consider when they enter talks with the Company on Partnership later this year. Whilst many members will be disappointed it is still important to maintain engagement because the Company have made a number of commitments to working groups on critical issues such as pay progression and red-circling. In conjunction with the upcoming pensions review, it is very important members and Rep's keep the Company accountable into 2017.
ANGLIAN WATER
Currently almost 2000 Private pumping stations have been identified of which 971 are transferrable, 31 so far have been adopted but increasing on a weekly basis. Hopefully this is a good sign for on-going employment and may result in further jobs to maintain the stations. However “Operation Spitfire” has been under way for a while now and is charged with saving £15 million of sustainable savings by 2018. Some savings have been found but the initial bulletin to employees did not rule out making savings through reducing numbers of people if it cannot be found elsewhere, this being the case GMB will vigorously defend every member and every job.
AFFINITY WATER
Unlike most other companies Affinity water are approaching retail separation without physically separating, however they have had to set up a different business that for now at least will operate under the Affinity for business brand and from the same HQ in Hatfield as Affinity water limited, the employer does not anticipate job losses or pension issues but GMB reps will monitor the situation day by day.
ENVIRONMENT AGENCY
GMB members rejected what they described as a “derisory pay offer”
Members are unhappy with the lack of parity with the DEFRA pay award agreed in July, 2016 which was considered by members to be a superior offer despite the alleged drive towards “One Business”. Members also raised significant concerns over additional benefits for our field services members, who receive the least from the offer. Other responses from members included concerns regarding a possible reduction in contractual hours and questions were also raised over the timeline for the implementation and details of the Banked Leave Scheme and progress on the Disability Leave Policy.
GMB have raised these issues with Management and await further response and details of any improved offer which can be put to our members.
CONTRACTORS
Increasingly contractors are becoming indistinguishable from direct labour, being issued with liveried vehicles and uniforms of the client company, however that’s where the similarities often end, with inferior pensions, holiday and sick pay and many stories of health and safety being paid lip service to until an accident or cable strike occurs, if you’ve been affected by any of these or have concerns about other issues we would like to hear from you.
Pension News
Many members are finding that as they near retirement age and ask for a projection of their state pension it isn’t what they were expecting.
When the Conservative led con-Dem government announced the change to a Single Tier State Pension and how much people would get, they didn’t make it clear how those who had been in contracted-out workplace pensions would be affected.
Workplace pensions that made sure they provided more benefit than being in the State Second Pension (S2P) or SERPS were allowed to contract out of it. If your workplace scheme was contracted out then you as a member of it were contracted out and therefore you didn’t build up any S2P or SERPS.
This meant you and your employer paid a lower rate of National Insurance. On retirement members will be receiving just your basic state pension and your workplace pension.
However, Government made it sound as if everyone after April 2016 would receive the new Single Tier State Pension amount which is not the case. The state pension calculation takes in to account your whole National Insurance record including periods of contracting out as well as anything post the end of contracting out in April 2016. This was a failure of Government to be honest about the size of State Pension you could expect.
However, it is possible to top up periods of contracting out by paying Class 3 National Insurance Contributions. You can currently go back to 2006/07 financial year to top up contracted out years. The cost of topping up contracted out years is roughly £730 for each year. This extra £730 payment will buy you 1/35th of the new state pension amount which is the equivalent of £230 per year state pension every year in retirement. You can only top up to reach the full Single Tier amount of £155.65.
For more information go to https://www.gov.uk/pay-voluntary-class-3-national-insurance/overview
USEFUL CONTACTS
Anglian Water Lead Rep John Bridges
Mobile 07710578649
Email jBridges@anglianwater.co.uk
Essex and Suffolk Water Lead Rep and East of England Branch Secretary
Paul Saggers
Mobile 07736793183
Email paul.saggers@nwl.co.uk
Thames Water Lead Rep and Thames General Branch Secretary
Cliff Roney
Mobile 07747641476
Email Clifford.roney@thameswater.co.uk
Affinity water Lead Rep and Three Valleys Water Branch Secretary
Gary Pickett
Mobile 07801677037
Email gary.pickett@affinitywater.co.uk
GMB Regional Organiser Michael Ainsley
GMB Chelmsford office
Phone 01245 345165
Shortly your branches will be submitting motions for Congress and selecting a delegate to attend. If you would like to have more information about Congress, branch meeting dates please contact your Branch Secretary.
If you do not have a rep in your workplace/local area and you would like more information about becoming a rep please contact Michael Ainsley, Regional Officer at Michael.ainsley@gmb.org.uk or call 01582 404842
