Barnet Unison seek job security for council Capita staff and call for services to be brought in-house

From Barnet Unison LINK

 This morning Capita staff woke up to some scary headlines that the former FTSE 100 company was in serious trouble.

The next Carillion? Shares in outsourcing firm Capita plunged 40% after profit warning LINK.

Outsourcing giant Capita announced the suspension of its dividend as part of a transformation plan this morning – and shares duly plunged by more than 40 per cent LINK.

This news follows on from the recent collapse of Carillion only a couple of weeks ago. Already political commentators are making comparisons with Carillion and Capita.

In light of the much publicised stress and anxiety experienced by Carillion workers in the wake of the company’s downfall; Barnet UNISON has written to the Chief Executive seeking details of Barnet Council’s contingency plan in the event Capita may have to give up their contracts.

We know that whatever happens there is going to be a great deal of speculation and uncertainty for the staff and whilst UNISON has seen the email from Jon Lewis, Capita’s, new Chief Executive trying to stem anxieties of his 70,000 workforce, we know workers will be worried about their jobs.
Barnet UNISON is looking for a statement from the Council in the event that Capita are unable to continue to run the two Barnet contracts, that Council will initiate plans to transfer the staff back in-house.

Who can we trust?

Since the collapse of Carillion, more news has emerged as to how bad things really were for that company. Furthermore questions are being asked about the role of the external auditors KPMG more here LINK
 
It has happened before in Barnet…… 

In 2010 Barnet Homes had commissioned Connaught’s to provide Council Housing Repairs service. Connaught’s went into liquidation. Our members were told they had lost their jobs over a message on a speaker phone. Months earlier Barnet UNISON had held talks with Barnet Homes Chief Executive as it was becoming increasing clear Connaught’s were in serious trouble. There was further problems when it became clear that there was missing pension contributions which needed to be picked up by Barnet Council.

Read more HERE

Footnote: On 26 June 2017 Capita share price was 705.50 now six months later the share price closed today at 202.09 which represents a 72% drop in their share price over a six month period.

On Wednesday 31 January, 2018 the Capita share price opened up at 347 and closed at 182.50 which represents a 47.53% fall in share price.

John Burgess, Branch Secretary of Barnet  Unison said:

Once again the market shows that it is merciless when a company is in trouble. Carillion looks as if it is just the tip of the iceberg. The minute Carillion collapsed I immediately started to look more closely at Capita Share price. I noted that Capita share price had already dropped by around 66% in the last two years. Today seems to have shocked many experts. My concern is for the staff and the local services they provide for Barnet residents. I know from speaking to staff that they are worried and quite understandably cynical about any messages trying to play down what is happening to the company. After the debacle that our former Connaught members went through previously I want to ensure this time that Barnet UNISON does it utmost to try to allay members concerns about their future employment. My view is that this event is a watershed moment for Barnet Council. Please abandon your “love affair” with outsourcing and commence negotiations to return all services back to the Council.

Democracy in action? Cuts protesters barred from debate.

A group of protesters entered the Town Hall while others continued to protest outside

I am unable to bring you a report on tonight's Brent Council meeting, which was voting on a cuts package that will seriously damage the people of Brent,  because police barred me, and many others, from attending the meeting of the Council. Admission was by ticket only with a limited number issued. There were empty seats in the chamber and on other occasions the public have been allowed to stand. Not tonight.

I was told by the police that they had been called by the Council and instructed to remove me from the building  (Brent Town Hall)  because I was trespassing.  When I said that I was there to see democracy in action I was told that democracy was voting in elections and protesting was nothing to do with democracy. When I said that I wanted to report on the debate and the arguments for and against the cuts, I was told that it was for the Council to decide whether they wanted their proceedings reported and that Parliament  didn't let the public into all their debates.

Frustrated campaigners continued to protest outside the Council chamber for some time until they left in orderly fashion. They left having made their point that they were not prepared to accept the supine position of Labour councillors who appeared prepared to damage the very people that they had been elected to serve and protect. 

Groups from a variety of campaigns had lobbied outside the Town Hall from 6pm in a good-humoured but determined show of solidarity.

HOW COMPREHENSIVE SPENDING REVIEW WILL HIT BRENT

The Comprehensive Spending review announced unprecedented spending cuts with local government being one of the hardest hit areas. The government has, in effect, outsourced responsibility for spending cuts to town halls.

The effect on jobs and services in Brent will be devastating.

The full extent of the cuts in Brent will not be properly known until December when the Local Government Grant is finalised and a more detailed analysis of the Comprehensive Spending review has been undertaken. However, I anticipate that some services currently taken for granted will simply disappear and services which councils are not required by law to provide will be shredded.

The cuts will cause real pain and anxiety for people who provide the services and those who receive them. Consultants KPMG and PriceWaterhouseCoopers have warned that many councils may cease to become financially viable faced with cuts of this scale.

I urge everyone – fight to defend jobs and services.

Phil O’Reilly, Brent UNISON

'Savings' will have devastating impact on jobs and services

Brent Fightback: Guest posting by Phil O’Reilly, Branch Secretary Brent UNISON

In May 2009 Brent Council appointed management consultants PriceWaterhouse Coopers (PWC) to undertake a review of the Council’s structure and staffing arrangements.  The aim was to identify significant ‘efficiency savings’ as part of a wider Improvement and Efficiency Strategy.  I asked how much PWC were being paid (management consultants often get paid £1,000 a day) to carry out this review and to date, have not received an answer.

In September 2009 the Council launched its Improvement and Efficiency Action Plan 2010 – 2014.  This plan clearly stated ‘In the light of these financial and political factors, forecasts for the likely scale of the efficiency savings the Council will be required to deliver are a minimum of £53.7 million by the end of the financial year 2013/2014’.  It was also stated that the staffing complement in Brent was to be reduced by ten per cent over four years which is the equivalent of approximately 300 full time posts.  Since then of course we have had a change of government and I have heard it said that the ‘savings’ now required are likely to be £85/£90 million.  Make no mistake this is having and will continue to have a significant and devastating impact on jobs and services.  It has been stated that frontline services will be protected.  However, this is dividing ‘front’ and ‘back’ office workers who need each other to deliver efficient and effective local services.  Also, it is not possible to protect frontline services whilst delivering ‘savings’ of £85/£90 million.  Let us be clear – they are cuts and not savings.

However, the cuts that have been imposed so far are ‘different’ to the ones that Brent, historically, have made in previous years.  We are not seeing (yet) closures of nurseries, old people’s homes, etc.  These type of cuts and closures gain public support and sympathy and galvanise people into action.  What we are seeing are job losses and post deletions in the following areas :  Health, Safety and Licensing, Environmental Health, Cemeteries and Mortuary, Transportation, Youth Service, Crisis Intervention and Support Service, Social Workers, Administrative Workers, Planning, Building Control, Parks, Streetcare, Libraries – these are just some of the cuts that have been imposed so far.

Clearly, the coalition government is out to destroy the public sector.  The savage cuts will have a devastating impact and effect on jobs/services/the community.  Noticeably and alarmingly, they will hit the most vulnerable – disabled people, single parents, those on housing benefit, black and other ethnic minority communities, students, migrants workers, LGBT people and pensioners.  Women are expected to bear 75% of the burden.

So how do we respond?  We need to mount a broad based campaign, working with other unions, the voluntary sector, service users, community groups, etc to defeat the aims of the coalition government and protect jobs and services.  We should also be calling on the newly elected Labour Council in Brent to lead a delegation from Brent to march on Downing Street or Parliament and/or hold a rally/demonstration to coincide with the announcement of the Comprehensive Spending Review on 20 October – which will surely deliver even more cuts to the public sector.