SEE
BELOW - BT
Pay 2012/Performance Management & Management Style in BT/BT
Pension Scheme Commutation Factors/REQUESTS
FOR REFUNDS OF CONTRIBUTIONS/BT ANNOUNCEMENT
ON PENSIONS/SELF-DEFENCE GUIDE TO SURVIVING
PERFORMANCE MANAGEMENT
BT
Pay Bulletin No.1 - 20th January 2012 - TALKS
OPEN TO SEEK TO MITIGATE THE IMPACT OF RPI
If you would like to, send
us your views on pay. Please email BTpay@cwu.org
The CWU has begun discussions with BT on pay for Team Member NewGRID grades
after the November 2011 RPI hit 5.2%, invoking a clause in the three year
2010 pay agreement to open talks to seek to mitigate the impact of a volatile
RPI.
BT have confirmed the 3% agreed will be paid in January
2012, but there is still a gap between your pay and the rise in the cost
of living.
The CWU’s third pay meeting with BT took place on
17th January when we put forward a robust case for a further pay increase
on top of the 3% already awarded to close the cost of living gap, citing:
- The price of essentials like food and fuel have risen
by more than non essentials like leisure goods, hitting CWU members
hard
- BT’s profits are built on the backs of CWU members
who are under more pressure from cost cutting measures
- BT’s pre-tax profits rose by 36% to £552m
in the second quarter
- Total operating costs fell by 3% or £108m
- BT is highly competitive and its share price has surged
53.8% since July 2010, with analysts predicting a further 30% rise
- Analysts believe BT’s pension deficit is set
to reduce, resulting in higher free cash flow
- BT's market leading position rests on its ability
to award market leading pay settlements and sustain pay in real terms
- There is a clear reluctance on BT’s part to
make an offer beyond the agreed 3%, but with the price of everyday goods
soaring the CWU is determined to do all we can to ensure BT stick to
their promise and seek to mitigate the impact of volatile inflation.
No further meeting dates have been set at this stage,
but members and branches will be kept updated on progress.
PERFORMANCE
MANAGEMENT & MANAGEMENT STYLE IN BT
Following
propositions passed at CWU Annual Conference and the resultant negotiations
with BT, please note the comtents of the latest correspondence from BT
regarding the CWU campaign to improve Management Style and Performance
Management in BT.
Letter
from Tom Keeney - BT, to CWU DGST Andy Kerr - 2nd August 2011.
Dear
Mr Kerr
PERFORMANCE
& SICK ABSENCE MANAGEMENT IN BT
Over
the past few weeks we have met on several occasions regarding performance
management and sick absence in BT and the purpose of this letter is to
summarise the outcome of these discussions.
Before
going into the specific issues raised by the CWU, I would like to confirm
the following points to bring some context to our discussions:
• BT remains totally behind the letter and the spirit of the Performance
Deal agreed in March 2010;
• We remain committed to discussing any concerns that the union
has with the way the policies are being applied including the full range
of propositions you have highlighted to us from your recent annual conference;
• BT acknowledges that there are areas we can improve upon to ensure
the Performance Deal we have agreed is operated in the correct way;
• BT cannot agree to the request by the CWU to remove the current
performance management procedure.
You
requested a further presentation giving more detail on the data we track
in relation to performance management within BT through our CAREagile
survey and Sharon Darwent did this at the meeting on 27 July 2011. I can
confirm that going forward we are happy to share and discuss this at the
monthly performance management meetings we hold at Group level and also
within the Line of Business (LoB) discussions we have outlined below.
Progress
Made To Date in Performance Management Discussions
I think it would be useful to provide a summary of the progress we have
made during our most recent phase of discussions aimed at continuing to
improve the application of performance management procedures in BT. I
can confirm that we will continue to discuss the issues set out below
during the Group discussions set out at Annex B.
Absence
Management/Bradford Factor
We have agreed to raise the Bradford Factor to 100 and our systems have
been updated to accommodate this and we have communicated this to the
business. We have also confirmed that there will continue to be discussions
with the CWU around the deployment of our sick absence procedures with
the aim of improving the deployment and, in particular, the role line
managers have in applying discretion within the process. We have agreed
that we will continue to discuss any concerns you have with these procedures
and we will update these where appropriate. This includes further discussions
about the issues CWU has raised concerning the progression of formal warnings
and the mix of repeat and extended absences. To support this we have sent
some of the current procedures to Grace Mitchell and, in our view, these
set out the purpose of the Bradford Factor, the principles underlining
our approach to absence management and the roles line managers should
adhere to, including the use of discretion. We will also discuss at a
LoB level any concerns that the CWU have in the deployment of the procedures.
Levelling
process
We agreed that we will jointly look at the CWU’s claim that the
current levelling process leads to forced distribution and a ‘never-ending’
cycle of performance management activity that undermines the credibility
of the Performance Deal. In line with our agreement on our approach to
performance we have confirmed that levelling is mandatory at the mid-year
and the end of year performance reviews. Given the concerns the CWU have
raised about levelling being done more often than this and also the levelling
process in some LoBs we can confirm that each LoB will consult with the
CWU on the frequency and approach to levelling, including the rationale
behind the LoBs proposed approach. We also agreed that we will use the
escalation process outlined in Annex B if the LoB discussions fail to
reach agreement on this issue.
Continuous
Improvement
The CWU claim that the emphasis on continued improvement is unrealistic
and that this sets standards too high including the use of ‘behavioural’
standards as a catch all to justify performance management rankings. As
we have outlined in the ‘our approach to performance’, we
will support everyone to develop and be the best they can be. As stated
previously, we feel it is very clear that there are very few, if any,
areas of the business which cannot improve performance, but having the
correct job standards, targets and supporting processes is a vital part
of this. We also feel that it would be beneficial for LoBs to outline
to the CWU what continuous improvement means in their LoB as performance
dynamics and benchmarking can differ. This will also include discussion
outlining the measurement dynamics we use to improve the business and
how these relate to managing individual performance.
Use
of Compromise Agreements
The CWU expressed the view that compromise agreements are used too widely
as a means to move people out of the business quickly and the emphasis
should be on improving performance. The use of compromise agreements is
common practice throughout the industry and they continue to be used where
an individual and the company agree that such an arrangement is mutually
acceptable. I can confirm that all compromise requests from team members
will receive appropriate senior ER management sign off. Any individual
who wishes to consider the option of a compromise agreement will be given
appropriate time to evaluate their options before deciding to proceed
with any such agreement and we have agreed that we will increase the time
for team members who agree to consider a compromise agreement as a result
of performance issues or absence to 10 days from the current period of
3 days. They will also be advised of the right to consult with their Union.
We will reinforce this advice to our management teams to ensure this advice
is provided to individuals before they confirm their acceptance to any
compromise agreement. Compromise agreements remain one option for individuals
who are going through the PM/Absence Management processes, they are not,
however, an automatic right or automatic consideration. There should be
no proactive communication of compromise agreements although all options
open to the individual should be explained within the confines of the
confidential 1:1 performance or absence discussions between managers and
their people.
Older
employees and long service employees
We have agreed a date of 24 August 2011 for Dr Paul Litchfield, BT Chief
Medical Officer, to present to the appropriate CWU representatives the
support that BT has in place, or is planned, to ensure we meet the challenge
of supporting all employees equally through performance management. We
have discussed the attendees for this with you and will advise you of
the venue as soon as we have secured an appropriate room.
Displaying
Performance Information
In line with our agreement on our approach to performance we have confirmed
that we will ensure there is consistency and fairness in how ratings are
applied across BT by comparing the performance of individuals, teams and
business units whilst maintaining confidentiality. In relation to BT Retail
Business and Consumer Sales we will look into your specific concerns and
we have confirmed that we are not aware of anywhere else in BT where ‘league
table’ type displays outlining detailed individual performance are
in use. BT Retail will continue to discuss this with you during the roll
out of Together We Will Make A Difference and have already exchanged views
on use of performance information. We will also ask each LoB to discuss
and confirm with the CWU how we can recognise the performance of people
in a supportive manner whilst maintaining confidentiality. Again, if agreement
on this cannot be reached at LoB level there will be escalation of the
issue to the Group discussions in line with Annex B.
Sensitivity/discretion/capability
in dealing with employee cases
We have now extended the performance management manager helpline to all
employees and have communicated out the helpline number to everyone in
the UK. We plan to capture the data from this service to specifically
analyse this issue at the same time as maintaining the confidentiality
and integrity of this service and we will share appropriate data on this
with the CWU. In addition, the CWU have confirmed acceptance of our invite
to visit our case management team to experience the advice and guidance
managers are getting on how to manage cases.
With
regard to line manager capability, we are constantly looking to improve
this and there are a number of initiatives we are running and will continue
to run across the business e.g. ‘Practical Leadership Essentials’
which gives line managers the practical skills and knowledge to carry
out their responsibilities as a people manager. We also have the ‘Leadership
Pathway’ and a number of bespoke LoB programmes to support the continuing
development of our management population.
Escalation
Process
We have agreed to a more formal escalation process between BT and the
CWU of cases which are of concern to either side. This is outlined at
Annex A.
We
will also use the extension of the case management capability outlined
above to appeal directly to individuals and managers to raise issues which
are of concern.
Job
Descriptions/Job Standards
We have set out our intention to implement a simple standard template
for team members Job Descriptions and Job Standards across BT based on
the agreed output of the trial we are currently discussing with you in
Openreach. Whilst we put this in place we have withdrawn any inappropriate
Job Standards which the CWU have highlighted.
Next
Phase of Consultation
We
have discussed, at length, the deployment of the Performance Deal we made
with the CWU in 2010 and the lessons learned in ensuring how we could
have better deployed the agreement. We have accepted that the involvement
of managers and CWU representatives at LoB level could have been more
defined and ensured that the letter and spirit of the agreement were understood.
We feel that even though we have made significant progress, as outlined
above, there are a number of issues which need to be discussed with the
CWU at LoB level and we propose that this is done through a defined consultative
process over the next few weeks. The process is attached at Annex B and
includes how the provision of information in relation to performance and
absence management will be managed at local level as well as an escalation
route back to Group level should these LoB discussions fail to conclude
a solution to any of the issues which have been raised.
The
areas which I would propose these LoB discussions cover will include:
• Deployment of Sick Absence procedures;
• Levelling – frequency and approach;
• Performance measures and continuous improvement;
• Job Standards/Job Descriptions;
• LoB deployment of the Performance Deal – training, awareness
and tone;
• Data relating to Performance Management including CAREagile data;
• Future consultations within LoBs.
• Provision of information in relation to performance and absence
management at a local level.
The above list is not exhaustive and we would expect any other appropriate
performance management issues to be raised and dealt with by either side
during the discussions. It would be our aim to conclude the next phase
of discussions by 30 September 2011 and this would include any escalation
of issues to Group level being dealt with during this time.
I hope the content of this letter demonstrates to the CWU the progress
BT is committed to make to improve how we manage performance. I also hope
that the CWU will embrace the next phase of discussions including those
at LoB level. However, I feel that these can only be successful if the
CWU suspend the threat of a full scale campaign leading to a potential
industrial action ballot outlined in your letter of 18 July 2011. It is
our preferred approach that the CWU continue to work with us on this matter
given the importance of this to our business and our people.
Yours
sincerely
Tom
Keeney
BT
Pension Scheme Commutation Factors
Following the decision
in November 2010 that the BT Pension Scheme (BTPS) was going to use the
CPI instead of the RPI to increase certain benefits, it was announced
that a review of actuarial factors including commutation and early retirement
factors would take place and that new factors would apply from April 2011.
These are the factors by which pensions are reduced if a member elects
to choose tax free cash or commence payment of pension before the normal
pension date. The factors are generally determined by the BTPS Trustee
in consultation with BT.
Branches and members
have been contacting CWU HQ to ask for details of the new factors.
BT has applied the
revised factors to the on line modellers for Sections A/B from 19th or
20th May without announcing the changes to staff. The CWU has not been
briefed on the detail. In addition, BT has not issued the expected explanatory
communications.
As a result, at the
moment the CWU is not in a position to answer queries about these changes.
We have complained to BT about the completely inadequate way this issue
has been handled and the concern and uncertainty it has created for members.
We continue to press BT to explain the basis of the changes and to extend
the use of the existing factors because of the confusion. We will issue
further information as soon as we can.
Requests for
Refunds of Contributions - Notice from CWU HQ dated 5th January 2011
The increasing number
of requests received at CWU HQ has become a matter of concern to the National
Organising Department. Whilst the CWU is not obliged to refund these contributions
(if members have not advised us of changes in their circumstances) they
do take up an large amount of time in respect of administration.
Some of these requests
are for relatively small amounts of money but they do add up to a fair
amount over the year. With that said HQ also receive some individual requests
for refunds which amount to substantial sums of money.
The one thing that
all of these requests have in common is that they are unexpected. When
the refunds or partial refunds are granted they affect budgets which have
an impact upon our ability to operate as effectively as we otherwise could.
The problems arise when members go on maternity
leave, sick leave, retire, leave the business or change the hours they
work so that they are no longer full time etc and
fail to inform either the Branch or CWU HQ.
After a while the members then contact HQ requesting a full refund for
overpayments.
In order to rectify
the situation please note that HQ will only
be affording refunds if there is clear evidence from the member that they
informed CWU HQ of their change in circumstances. It would
therefore be extremely helpful if members contact CWU HQ or their Branch
as soon as there is going to be a change
in their circumstances. Any
changes should be emailed to membership@cwu-emc.org.uk.
Yours sincerely
John East
National Organising Secretary
__________________________________________________________________________________________________
CWU
EAST MIDLANDS BRANCH - SELF-DEFENCE GUIDE TO SURVIVING PERFORMANCE MANAGEMENT
Members
working in BT Retail will soon receive a copy of the booklet produced
by the branch on how members can defend themselves if they face unfair
and/or unwarranted Performance Management.
The
booklet contains two template letters for use if necessary and these template
letters are available here to be downloaded and amended according to each
individual case and circumstances.
Template
Letter Informal Complaint Performance Management
Template
letter Formal Grievance Performance Management
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