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SEE
BELOW - BT
Pay 2012/Performance Management & Management
Style/Pension Scheme changes/REQUESTS
FOR REFUNDS OF CONTRIBUTIONS/SELF-DEFENCE
GUIDE TO SURVIVING PERFORMANCE MANAGEMENT
Impact of Additional BT Pay
Award on Child/Working Tax Credits
A question was raised at a recent branch
forum about whether any pay award on top of the 3% already awarded to
BT NewGRID members would reduce members’ tax credit entitlement.
Whilst this would not stop the union negotiating
the best possible pay deal for our members, it is a genuine issue of concern
for some members. We have therefore investigated the potential impact
on members’ tax credit entitlement as a result of an extra non consolidated
payment.
Child Tax Credit
As of 6 April 2012, the second income threshold of £41,300 has been
withdrawn and reduced to £26,000 for one child and £32,000
for two children (this is a guide and can vary according to circumstances,
e.g. if you are claiming for more than two children or have a child with
a disability). Therefore, the changes made by government will have excluded
many more families and CWU members from receiving child tax credits.
A lump sum payment of £250 would take certain
grades above the new annual income thresholds to qualify for child tax
credits. For example it would affect anyone on the B2 standard max of
£25,782 if this represented their total annual household income,
taking them above £26,000.
However, as tax credits are based on expected income
for the coming year, most members will have already submitted their claims
for the 2012 year based on their annual salary excluding the extra non
consolidated payment. There is a £10,000 additional margin within
which pay can increase above the expected level without the claim needing
to be reassessed. Any tax credits paid based on an income within this
margin would not be reclaimed retrospectively the following year.
The child tax credit allowance is gradually reduced
as income rises, so the allowance for a family with a total household
income of just under the threshold would be relatively low. Therefore,
for anyone who has not already submitted their claim for tax credits for
2012, any loss in tax credits resulting from the £250 payment would
also be relatively low. The Tax Credit calculator available on the HMRC
website (link below), suggests that tax credit entitlement reduces at
around £40 for every £100 of income.
The working tax credit
The working tax credit is for working people on a low income and is based
on the hours you work and get paid for. A single person aged 25 or over
working 30 hours or more a week would need to earn £12,971 or below
to qualify for the working tax credit, and a couple aged 25 or over working
30 hours or more a week would need to earn £17,729 or below to qualify
for the working tax credit. From 6th April 2012 the government has increased
the number of hours a person or a couple need to work per week to qualify
for the working tax credit from 16 hours to 24 hours.
The HMRC tax credit calculator can be found at
the following link:
http://taxcredits.hmrc.gov.uk/Qualify/DIQHousehold.aspx
For further information visit the HM Revenue &
Customs website at http://www.hmrc.gov.uk/taxcredits/index.htm
Or contact the HMRC tax credit helpline on 0345
300 3900
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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