CSSA TO ESTABLISH AN INDUSTRY STAKEHOLDER PENSION SCHEME

The CSSA has been in consultation with a number of insurance advisers, brokers, and direct providers of pension schemes over many months with the intention of establishing an industry wide scheme that employers can join through membership of the Association.  The full details of this scheme should be ready for publication by year-end, but were not available at the time of going to press.

The features of such a scheme are likely to be:

• it will meet all the Government's proposed criteria for stakeholder pensions;
• it will carry a lower charge than the Government is proposing;
• no initial charge to invest;
• be provided by an established pension company with a proven track record of investment and administration;
• allow ease of transfer of employees who change employers;
• avoid employers having to set up individual company schemes to meet the law.

CSSA RESPONDS TO LOW PAY COMMISSION CONSULTATION ON THE IMPACT OF THE NATIONAL MINIMUM WAGE

The NMW increased to £3.70 from October 2000 as a result of recommendations from the Low Pay Commission (LPC) who have to date produced two reports to Government.

In July 2001 the LPC expects to publish its third report to Government.  During the autumn of 2000 the LPC has been seeking information from industry to inform this new report, and in preparation for this met with officers of the Association in late August.  The outcome was that the CSSA has sought responses from membership by means of a detailed questionnaire on the impact of the NMW to meet the following LPC terms of reference for its third report:

The Commission is asked to:

1) continue to monitor and evaluate the impact of the NMW, with particular reference to:

• the effect on pay, employment and competitiveness in low paying sectors and small firms;
• the effect on particular groups of workers, such as young people, women, ethnic minorities, homeworkers, people with disabilities and voluntary sector workers;
• the effect on pay structures, including the effect on differentials and different pay systems, and the impact of the special rules for output work, unmeasured hours work and salaried hours work; and
• the interaction between the NMW and the tax and benefit systems;
• the interaction between the NMW and the New Deal 18-24 and New Deal 25 plus.

2) recommend whether there is a case for increasing the main NMW rate and the development rate, and if so, by how much,
    and whether there is a case for making any change to the maximum accommodation offset.  In reaching views these
    matters, the LPC should take into account movements in earnings and actual and likely future impact on the economy, on
    employment and on training, with particular attention on the youth labour market.  The recommendations on the rates may
    include a further examination, in the light of fuller evidence, of the case for changing the age at which workers become
    entitled to the adult rate.

    In making its recommendations, the Commission should have regard to the wider economic and social implications; the
    likely effect on employment and inflation; the impact on the costs and competitiveness of business, particularly the small
    firms sector, and the potential costs to industry and the Exchequer.

At the time of publish a final analysis of the responses from CSSA membership was not complete.  However, the indications are that:

• the average increase to part-timers since before the introduction of the NMW (excluding October 2000) was 20p per hour;
• the part-time numbers employed has stayed the same with 50% of the companies; with 30% reducing employee numbers; and 20% increasing them;
• There has been an increase in full-time employees in only 10% of companies, with 90% remaining the same;
• Redundancies have been minimal;
• The impact of the NMW seems to have little effect on companies revenues;
• And, most companies have been able to achieve price increases, although with some difficulties in the public sector;
• 90% of companies do not pay the young persons rate, preferring to pay the full NMW;
• The percentage of employees from ethnic groups appears to be growing, with in a few instances the percentage of employees being of ethnic origin being above 50%;
• 40% of the companies responding said that the NMW was having an affect on pay differentials;
• Some 30& of companies also indicated an effect on their payroll and administrative systems too;
• In terms of future increases, 56% of respondents indicated they were in favour, but generally wished such rises to be restricted to the Retail Price Index.; 100% felt there was no need for increases in the 18-21 year age bracket, probably due to the fact that the majority are using the full rate for all employees;
• The introduction of the NMW was not having a negative effect on companies training strategies.

The CSSA expects to be invited to provide verbal evidence to the LPC in due course.

CSSA PUBLISHES NEW HEALTH & SAFETY COMPENDIUM

Health & Safety advice always seems to top any list of contractors list of needs.  In attempt to satisfy the many questions asked of their secretariat, the CSSA has published and despatched to all members a new H&S Compendium.  There are 17 sections totaling nearly 100 pages covering just about every H&S matter employers may need to manage.  Further guidance on appropriate regulations is included in each section.

It is provided in both hard copy within a loose-leaf binder, and, on diskette, for ease of use and distribution within a company's management team.  The content will be reviewed about every six months and any appropriate amendments and up-dates issued.

The Health & Safety Executive have reviewed the document and provided a Foreword written by Sandra Caldwell, HSE Director of Health.  The compendium has been produced with the co-operation of underwriters Royal & Sun Alliance, and, Darwin Clayton (UK) Ltd, insurance brokers to the cleaning industry.

The compendium is free to members of the CSSA, but can be purchased by non-members, priced £50.00.

CSSA SEEKS AMENDMENTS TO TUPE REGULATIONS

At a recent meeting with the Employment Directorate of the DTI, the CSSA put forward a number of suggested amendments to the TUPE Regulations.  It is expected, as a result of last year's amendments to the European Acquired Rights Directive (ARD), that the DTI will be seeking early Ministerial approval for the publication of a consultation document containing a number of major changes to the existing UK TUPE Regulations.  The consultation document should be published by the end of 2000.

Cleaning contracts to be included

The CSSA are keen to ensure that the proposed amendments bring clarity to the Regulations and thereby bring about a reduction in the number of disputes and employment tribunals.  In particular they are asking that all service provision contracts are included within the remit of any amended regulations, and this to apply to transfers from in-house, contractor to contractor, contractor to in-house irrespective of the number of generations of the contract.  Customers should be involved in the process of a transfer – if only to understand that it is the law and they cannot avoid it; and also that sufficient time is allowed in service provision changes to conduct the necessary employee consultations.

Employee information to be a legal requirement

Furthermore, it must be a legal requirement for the incumbent service provider (potential transferor) to provide in writing all employee liability information at the beginning of service provision tenders.  Such information to be supplied direct to those tendering (potential transferees), and, reference to this requirement contained within the customer's tender documentation.  Employee terms and conditions, and other liability information may not be changed by the potential transferor during the tender stage, unless for critical reasons, and then such changes notified in writing to all potential transferees, and the customer.  Should this information not be supplied by the due date, or if it is found to be inaccurate, the transferor may be taken to court, with suitable penalties applied including payment in respect of any losses pertaining to the transferee.

Clarity in use of ET&O reasons

Transferring employees are currently protected from dismissal at the point of transfer.  However, changes can be made for ‘economical, technical or organisational  (ET&O) reasons.  The CSSA is looking for clarity on when such reasons can be invoked without employees rushing off to Employment Tribunals referring to the transfer as the reason for any changes.  With the potential for so many ‘transfers' employers could potentially have literally hundreds of differing terms and conditions and there will be a need to rectify this.  With the introduction of the new Part Time Regulations there may also be the potential issue of ‘comparability' to address.

Pensions

Aware that the Government is considering inclusion of pensions within the TUPE Regulations, the CSSA is seeking that all transferring employees with pension benefits, accept the transferees existing pension scheme, and not seek ‘broadly similar' benefits.  The DTI were advised that many smaller companies were being excluded from tendering for local government contracts because of the requirements to provide pension arrangements that equate to the Local Government Pension Scheme.  Similar requirements were also being sought for other public sector contractors through the Cabinet Office guidance document on transfers within the public sector.

Employers Liability Insurance

The CSSA wished to be assured by the DTI that the amended regulations state that the transferor shall be responsible for all claims whilst the transferred employee was in their employment and that this ruling applied to public bodies not covered by normal insurance policies. A recent court case came to this conclusion.

Definition of an employee assigned to an entity

This definition requires clarity especially with regard to the proportion of time a potential transferring employee spends on a contract, i.e. workers, supervisors and managers who may work or be involved with more than one contract.  This might also avoid ‘dumping'.

IMMIGRATION AND ASYLUM BILL

CSSA discusses New Code of Practice with Home Office