Council and trade unions start dialogue about new company
The Leader and Operations Director of Shropshire Council today (Wednesday 19 December 2012) sent the following message to council staff:
Dear colleague,
Together with Tom Roehricht, ip&e’s new Managing Director, we have met with trade union representatives to talk through our plans for staff following the establishment of the new company.
As you know, ip&e is 100% owned by the council, and has been set up to generate public profit for reinvestment in council services. A strategic contract, setting out the way the council and ip&e will work together, is being drawn up and, of course, no transfer will go ahead without that and the respective business cases and business plans being approved.
It was a very positive and productive meeting, attended by the three main unions who represent our staff, and we set out the council’s principles for protecting members of staff who are transferred into the new company. Together, we discussed how the council and the unions would be working together throughout the process.
We understand the role of trade unions in protecting the interests of their members and we’re glad that we were able to reassure our colleagues in Unite, the GMB and UNISON, that we also take staff welfare seriously. It is really important that the council and the unions embark on this journey together. Staff will be very important to the success of ip&e, and we are committed to ensuring that your interests are looked after before and after you move into ip&e.
We welcome this new, constructive way of working with the trade unions and we look forward to continuing our dialogue as the process continues.
Joan Humphreys, of the GMB union, and Di Phillips of Unite, have told us:
“We were pleased to get round the table with the council, after a period of sparse communications between us, to start a productive conversation about the future and what it will look like for our members. We know that this is an uncertain time for staff, and we have been assured that we will meet on a regular basis now and be involved in discussions moving forward.
“The council was open in answering our questions about the company and we were – and are – reassured that we share the same vision of looking after our members throughout this time of change.”
Jo Messer, for Unison, gave a separate statement.
The principles set out by the council:
1. ip&e will be the council’s “provider of first choice”. The order of priority the council will encourage in its choice of supplier will be: ip&e; the local voluntary and community sector; local businesses; and then the wider market.
2. ip&e will remain, for the foreseeable future, 100% owned by Shropshire Council. Unlike other companies in the marketplace, this means that the council has full control of the company. The benefits, including profit, are passed back to the council and invested in frontline services for the people of Shropshire.
3. By trading within and outside of Shropshire, ip&e will create jobs to support our local economy.
How and when will staff move into ip&e:
1. Staff moving into ip&e will be transferred on the same terms and conditions of employment that are offered by the council. Any changes to terms and conditions will be subject to the same consultation as they are at the council.
2. Staff will only move into ip&e when the council is confident that the services that those staff will deliver can be traded. This will be demonstrated by a business plan for service provision and a clear projection of market share.
3. Staff will move into ip&e on a controlled basis, building on success. Ip&e will produce a business plan which, in the financial year 2013-14, will include the transfer and trading of Shire Services to demonstrate its capability, which will be measured in turnover, growth, profit and number of jobs created. Also, during 2013-14, the council will develop Shared Services to the point there it can be transferred with a viable and robust business plan. Other services, including legal services and print services, will be considered for transfer to ip&e during 2013-14.
Keith Barrow, Leader of the Council
Clive Wright, Operations Director
