Welcome to UNISON Scottish Water Branch

The New Local Government Pension Scheme - 13/11/07

As you know, discussions have been on-going between the Trade Unions, Cosla and the Scottish Government regarding the new scheme due to be implemented by 1^st April 2009. The new proposals have been out for consultation, and Scottish Water Branch have fed through our views on your behalf through Unisons’ processes. By and large the proposals are welcome, especially since we managed to retain the Rule of 85 until the year 2020. Also included in the proposals for the new scheme is an alteration to the accrual rate of 1/80^th plus lump sum (3/80ths) to 1/60^th’s, with an option to commute up to 25% into a lump sum.

However, clarification is required over certain aspects of the proposals, in particular ill health benefits, contribution rates and partner pensions. With regard to ill health benefits, the current proposals envisage 2 tiers – the first being a scenario whereby the member has no prospect of working before normal retirement at 65 and; secondly where the member is likely to undertake gainful employment before 65 within a reasonable period. Unison believes that there is scope for a third tier whereby a member may be able to undertake a new job within a reasonable period of time, but doesn’t qualify for the second tier. Unison propose that in this case, the employer, not the pension scheme would provide a grant, equivalent in value to a pension based upon accrued service but no enhancements. Part of the problem is the lack of clarity of key phrases such as “reasonable prospect”, “gainful employment” and “reasonable period”.

With contribution rates, the working assumption is that it will be tiered similar to the tax banding system. Unison envisage potentially large leaps in contributions as employees move through salary bands. We would much prefer a gentle curve through the contribution rates to prevent members being hit by large increases.

Current proposals regarding Partner pensions are that dependents benefits will be payable in respect of widows, widowers, civil partners plus unmarried partners who co-habit at a rate of 1/160^th. Question have arisen over who may qualify in respect of partners who co-habit, where there may have been serial partnerships of some duration.

All of the above issues are still under discussion, and hopefully clarification will be issued soon. The Branch will keep you up to date with developments.

PAY AND REWARDS

The SWC Rewards Sub-Group met on Friday 9^th Nov and kicked off discussions on the General Pay Award due on 1^st April 2008. Issues discussed ranged from STAR, Pay Progression and Salary Bands to Differentials and payment of market rates.

The main stumbling block to a decent settlement is likely to be the potential imposition of the Government’s 2% limit on public sector pay deals. SW are making a case to the Scottish Government that this should not apply to SW as we are a tightly regulated business. UNISON is also lobbying on this issue at Holyrood via our Full Time Officers.

All being well, we are hoping to have an agreement in January 2008 that can be taken to the Government for approval.

SCOTTISH WATER COUNCIL COMMUNICATIONS - 13/11/07

There has been a series of discussions over the last few months regarding the problems with partnership, communications between SWC and the BUCs, the structure of SWC and the need for the Partnership Liaison Group. Much of this debate stems from papers prepared by the Trade Unions and tabled at SWC.

There is consensus within the JTUG that we should not change the size of SWC and this was fed back to the Council in late October. Some managers and some BUC members were in support of expanding the Council and having BUC members appointed to SWC to ensure that there was wider functional representation. We felt that this would lead to an imbalance in TU/Employee rep/management numbers and therefore Trade Union members views would not be represented strongly enough. We have therefore put forward a proposal for SWC Employee Reps (TU and non-TU) to be allocated as the main point of contact for BUCs and for these reps to attend BUC meetings monthly if possible or if required. This proposal, and whether BUCs want employee reps only or if management reps are acceptable, is to be put to BUCs over the next month.

We are confident that reinstating direct contact between SWC and BUCs will lead to a better and faster flow of information and will lead to a more consistent approach to consultation and change management. It should also lead to greater TU influence in decision making throughout the Business

Our proposal was for reps to cover the following BUCs:-

Assets / SWS – Dave Wilkinson
Ops / Commercial - Tom Finlayson (TGWU)
Finance - Jimmy Morton (Amicus)
Customer Service - Andy Nisbet (Employee Rep)
SW Contracting - Andy Thompson (GMB)

This arrangement, if accepted, would be put in place for 6 months and then reviewed to see if communications and engagement had improved.

SW Solutions Desecondment - 13/11/07

Over the next few years it is likely that all the Scottish Water Staff presently seconded to Scottish Water Solutions will be returning to Scottish Water to take up roles in Asset Management.

UNISON has been working with both Scottish Water and Scottish Water Solutions to ensure that this process is carried out in an appropriate manner and that the rights of our members are protected. As previously reported we have agreed a Desecondment Process and, via the Solutions / Assets Resource Sub-Group, we are trying to ensure all desecondments are carried out in accordance with this.

However, we understand that a lot of staff have concerns about desecondment and that a lot of rumours and misinformation are currently circulating. Hopefully some of these can be quashed at the SW Event in Perth but if not please get in touch with the Branch.

If you are in Solutions and have any questions please contact one of the following Reps:-

Steven Gordon, SWS, Torridon House, Inverness Tel 01463 228181

Fergus Allan, SWS, Riverside House, Dundee Tel 07875 872846
David Wilkinson, SWS Kingshill House, Aberdeen Tel 01224 675033

International - 13/11/07

Community H.E.A.R.T

The Branch has recently decided to donate £200 annually to Community H.E.A.R.T. (Health Education And Reconstruction Training). This is a UK based Registered Charity, set up to overcome the awful legacy of apartheid in South Africa. Together with their partners in South Africa they give priority to health, education and reconstruction training projects based on the principle of self-help. We trust that members will support this action.

Find out more about them at http://www.community-heart.org.uk/

Cuba Update

Last year we asked members to contact their MPs to sign EDM 1959 which sought support for a common EU position on Cuba. 202 MPs signed this EDM. Check if your MP signed up here -

http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=30440&SESSION=875

The latest on Cuba, including news on the latest vote (184 to 4) by the UN condemning the illegal US blockade of the island, can be found at the Cuba Solidarity Campaign’s site at http://www.cuba-solidarity.org/

The Future of Scottish Water - 9/6/07

The announcement by SNP Finance Secretary, John Swinney, to keep Scottish Water in the public sector and under Scottish Executive ownership is welcomed by the Branch. This decision has ended months of speculation about the potential for privatisation or mutualisation. UNISON has lobbied and campaigned for some time on this issue, even commissioning an academic study in conjuction with the STUC to demonstrate the risks associated with private or mutual models, and both UNISON and the STUC must take some credit for this outcome.

For details of the Secretary's decision see http://news.bbc.co.uk/1/hi/scotland/6688399.stm

SW Solutions Desecondment - 9/6/07

As SWS comes to the end of its contract, around 186 SW staff working in Solutions will be deseconded back to SW over the next 3 - 4 years, with most likely to be back within a year. UNISON, via reps in the SWS Forum and Asset Management BUC, is involved in developing a process to ensure that the desecondment is carried out fairly and sensitively, and that all staff come back to SW at the same grade, in a directly comparable post and at a time that is mutually convenient to the employee and employer.

Details of this process are to be circulated to staff but outline info can be obtained from Jim Anderson (Edinburgh) or David Wilkinson

Pay and Rewards - 9/6/07

Bonus

Agreement has been reached on an amended Bonus scheme which will now include an additional regulatory period bonus. Annual bonuses will rise to £900 max for 2008, 2009 and 2010 and there will be an additional £900 max bonus payable in 2010 if the 4 year regulatory targets are met. This means a potential bonus in June 2010 of £1800. Details are still being finalised but this should be formally communicated in early July.

STAR

While more cash on the bonus is always welcome, the downside of this is a clear drift by SW away from consolidated, pensionable pay progression to non-consolidated payments. The average STAR payment remains at 0.75% this year despite SW making £22m profit in the last financial year. SW are electing to trouser this money rather than honour a commitment to increase STAR to 1.5% if efficiencies permitted (which they clearly did!)

Salary Structure

SW want the TUs to engage in a discussion around developing a "high performance, high reward" culture. It is not clear what this is in reality but it sounds very much like Performance Related Pay at the moment and we will need to proceed with caution on this issue. Usually PRP means the end of Cost of Living awards and this is something that the Branch could not entertain. We are committed to maintaining the value of all members earnings via COL / inflationary rises.

As part of the above discussion we will be considering issues such as new salary bands, differentials, placement in a band, future pay progression and other salary issues and we would welcome members' views on this.

Telematics - 9/6/07

As some of you will be aware, telematics systems were fitted to SW vehicles in 2003 to maximise the use of the fleet and to save money on tax and mileage. The TUs reluctantly agreed to this at the time but made agreement conditional on this being strictly a cost saving exercise and not a "spy in the cab". We assured members at the time that information from the telematics system would not be produced at any formal investigatory or disciplinary hearings.

However, SW has for some time been seeking to gain TU agreement on the use of telematics data in disciplinaries. Despite the TUs rejecting any change to the policy SW keep putting this on the agenda. Finally at the SWC meeting on 31st May, SW accepted that the TU position was not going to change and this issue has now been taken off the table.

Somehow though, we have a sneaking suspicion that this particular bad penny won't be long in turning up again.

OLDER NEWS

AGM Dates

Provisional dates for aggregated AGMs are:-

Fairmilehead, Edinburgh - 12/2/07
Castle House, Dunfermline - 14/2/07
Bullion House, Dundee - 16/2/07
Kingshill House, Aberdeen - 19/2/07
Shetland Office - 20/2/07
Balmore Road, Glasgow - 6/3/07
Dumfries Office - 7/3/07

All meetings will be at lunchtime, 12.00am til 2.00pm max.

Andy Nisbet Elected to SWC

Congratulations to Andy Nisbet who has been elected employee representative on Scottish Water Council. As many of you know, Andy is an experienced and long-standing activist within the Branch, and all the Trade Unions feel that his experience and knowledge will be of great benefit over the coming two years.

Pensions Latest

Although there was disappointing news regarding the Judicial Review, the situation with regard to discussions over a new look scheme in Scotland gave us some cause for cheer. The Finance Minister, Tom McCabe appears to have acknowledged that the timescales for discussions on this scheme was extremely tight, and therefore a revised timetable for all parties, ie. COSLA, The Scottish Executive, the Scottish Pensions providers and the Trade Unions, will have a longer time to deliberate and arrive at a scheme which is acceptable to all.

It now seems that implementation of any new scheme will not come in to effect until 2009. Of course, the details of the new Pension arrangements still require to be worked out, but Actuaries are now beginning work on what a final salary scheme would look like in the light of the health of future funds. The trade unions and indeed the Pension providers them selves, have always maintained that funds are healthy, and will remain so into the foreseeable future.

The Branch will, of course, keep you up to date with developments as they happen

Pay Award

Scottish Water have finally confirmed that the 2006 Pay Award, agreed on April 7^th, will be paid in October salaries. This will of course be backdated to 1^st April 2006. The Branch would reiterate that the delay was not of the Trade Unions or Scottish Water’s making and the fault lies squarely at the door of the Scottish Executive.

Clearly this is not a situation we can allow to happen again and UNISON is working with the STUC to ensure that the Scottish Executive do not interfere in future pay negotiations. Strong representation is being made to the Exec via our full time organisation to express our anger at this unnecessary delay and to spell out the consequences of future interventions.

Unfortunately, due to the volume of work that Payroll will have to undertake to calculate the back pay, STAR payments will not be made until the November salaries. Again, this will be backdated to the effective date of 1^st October 2006.

Pensions - 24/7/06

The Branch carried out a consultative exercise via newsletter recently on the next steps on the pensions campaign. The outcome and the decision of the Branch Executive was to go for Option A i.e UNISON,

1.    Agrees to maintain the suspension of industrial action pending ongoing discussions on the future schemes.

2.    Instructs the Service Groups to develop suitable mechanisms for a ballot, in conjunction with the other relevant Service Groups and the Service Group Liaison Committee and delegated committees established for these disputes.

3.    Instructs the Service Groups to revisit and update an industrial action and strike action plan that can be implemented expeditiously should the negotiations break down. To assist in this the Service Groups should maintain regular discussions with the other service groups and the Service Group Liaison Committee and delegated committees.

4.    Instructs the Service Groups and calls on all Branches to continue to provide detailed information to members about the progress of the negotiations and legal challenges.

5.    Resolves to step up recruitment and organisation around the LGPS so that the maximum number of scheme members can participate in the campaign to produce a successful outcome of these negotiations and that UNISON organisation is strengthened as consequence of this dispute.

New Member Prize Draw Winner

New member, Mark White receiving his digital camera from Deputy Secretary, Jim Anderson

Pay and Rewards Deal Agreed

A deal on Pay and Rewards has been struck between the Trades Unions and Scottish Water although this is still subject to approval by the Scottish Executive.

Main points of the deal are:-

Cost of Living Award

1/4/06 - 3% applied to basic salary
1/4/07 - 2% applied to basic salary

The movement of salary bands is still under discussion and should be resolved on Tuesday 16th.

Pay Progression

1/10/06 - average 1.25% available - actual amount will depend on STAR outcome
1/10/07 - average 0.75% available - actual amount will depend on STAR outcome

It is hoped, however, to increase the average STAR payment to 1.5% in both years through efficiency savings.

Differentials

The median salary for roles where there is an historic salary differential will be paid with effect from 1/4/06. Not all roles will receive payments however as there are a number of exclusions i.e. new roles since 1/1/04, roles with single role holder, staff on development plans who have received accelerated progression etc. A full list of medians and exclusions will be published in due course.

Malcolm, Alisdair, John S, John L, Graeme and Frank on the picket line at Kingshill House.

UNISON Scottish Water Branch members were on strike for the first time in 17 years on 28th March 2006 over the government's failure to protect the right of LGPS members to take an unreduced pension at 60. The vast majority of SW members complied with the instruction to strike and the Branch picketed almost all Scottish Water's main offices. The strike day was a great success with very low numbers attending work, non-members refusing to cross picket lines and some non-members choosing to join UNISON. Recruitment over the four week period leading up to the strike was fantastic with 45 - 50 new members.

The day of action has lead to a reconvening of tripartite talks between the TUs, Government and Local Government Association and further strike action has been postponed to allow these talks to continue. However, be assured that further action will be taken if concessions are not made by the Government.

You can interact with Branch Officers, Stewards and other members on our new web forum. Hopefully this will build up to be a good source of up-to-date information as well as a hotbed of gossip and speculation. Go here to register:- www.unisonwater.freeforumhost.net/index.php?act=idx

SCOTTISH WATER BRANCH