Remploy 4

THE FUTURE

RECOVERY PHASE OF REMPLOY LTD Compiled by: The Remploy Consortium 2011
Phil Davies - GMB National Secretary and Secretary to the Remploy Consortium of Trade unions Kevin Hepworth Unite Officer and Chair to the Remploy Consortium of Trade Unions

One Remploy - Aims

Manufacturing Enterprise Businesses & Employment Services; Separately Accountable, independent businesses yet cross linked to create a one stop shop for disabled people. Job shop (ES) Training + Life Long Learning (Factories) Long term & short term employment contracts Modern Apprenticeships / Development - Accountable - Responsible - Green; Ethical & Environmentally Friendly The showcase employer & champion for disabled people seeking employment, training, rehabilitation, support & assistance in getting and keeping a job

A ONE STOP SHOP FOR DISABLED PEOPLE

Training Learning Development

Apprentices

ENTERPRISE BUSINESSES

Remploy Factories

Trainees

EMPLOYMENT SERVICES

Career aspirations

Open Employment

Rehabilitation

ONE REMPLOY BOARD not 3 separate ones!

Chair (Gratis)

Non Execs
(Gratis)

Chief Executive

Finance Director

Manufacturing Director

HR Director

Employment Services Director

Enterprise Business CCTV Social Enterprise

HR Team for EB & ES

Recruitment Retention Rehabilitation

4 DIRECTORS ACCOUNTABLE & FOCUSED

Enterprise Business Employment Services

REMPLOY HEADOFFICE
CENTRAL FUNCTIONS

One Remploy

Remploy Employment Services

Recruitment & Retention

Disabled People Choice!

Remploy Enterprise Business

Remploy Factories Managed Services CCTV

Learning Training & Development

Return to Work
Open Employment

What must Stop?

Growth in Management populations

Management Incentive schemes which

dont achieve growth & sustainability (Bonuses over 1.7 million in 2011)
Company cars - 2.0Ltr petrol guzzlers;

Expensive road tax and large insurance models; 3 brackets of car or allowance
BUPa Private Health Insurance for Senior

Managers

Separate 50ths Pension scheme for Directors unnecessary waste of tax payers money

Develop Strategic Growth Opportunities

- Government to support their desire/objective to move work out of Government Departments and into Public Procurement Contracts
-Remploy is a not for profit contractor with previous

civil service spend being used to employ disabled people who would otherwise be benefit reliant
- Will to achieve politically acceptable manpower

reduction for Government and social/economic objectives for Government

Engage with young people with Disabilities- trainees;

apprenticeships; work tasters and work experience (NEETS)

Develop Strategic Growth Opportunities

- Develop commercial business propositions and products/services based on pursuing ethical , fair trade and green market segments including recycling.
- Partner and/or sell products and services to socially

responsible Companies who want to show their support for disabled people in work
- Will to provide substantially improved margin and a

better platform to show worth of disabled people in work

Links with JC+ and Access to Work

Demonstrating the Social Worth of Remploy

- The will to do more to relate Remploy to the communities we

- The will to engage with disability groups in the community Will to engage with Charity Organisations

operate in

The

- The will to engage more with BASE - The will to use factory base to link with communities

- The will to develop Learning Opportunities in Remploy for all disabled people on benefit in the community - The will to set targets for promotion of disabled employees inside Remploy into Management

What the Trade unions said in September 2006 & 2007

THE PROBLEMS IN A NUTSHELL

Government want to move 1 million people off benefits into work over the next 10 years. Remploy is given 111 Million grant from government (1/3rd of DWP budget) The Minister for Disabled wants a more efficient use of the subsidy (& so do the Trade Unions). Remploy Factories are in decline due to being run down in favour of Interwork. Disabled Factory Employee numbers run down. Now at 5000 (Disabled numbers were 8,487 in 1997, 10,331 in 1992). Manufacturing work is not being sourced, costs have been continuously added to Factories with no added value in return. R21 strategy was working (Review letter from C.E & chairman 2003 confirmed this fact) but R21 now ignored by current board.

OTHER CONSIDERATIONS
New deal clients eligible from day 1 on sickness benefits, easier to place into employment (Shaw Trust) Workstep eligible after 6 months on certain benefits, harder to place (Remploy - 60%)

Would Interwork be successful Factories? The answer is No

without

Remploy

Where will long term benefit recipients be placed to work? Long term benefit recipients may never have worked, are far from being job ready, fearful of work.

OTHER CONSIDERATIONS
Are Interwork shops the way forward? Terms of Reference state: identify and develop implementation plans for new alternative business models that recognise Remploys history and traditions in employing and supporting disabled people. The answer is No.

50% of all people helped by Interwork end up back unemployed (between 6 months & 5 years) Why? The answer is that factories can support with rehabilitation. This means that 50% only work up to 6 months.
The N.A.O Report is based upon Remploy Management supplied figures and central recharge costs. The Factories are being made to pay for a massive Central Corporate Structure.

CURRENT REMPLOY
COMMERCIAL ENTERPRISE OR TRAINING PROVIDER? MANUFACTURER OR JOB AGENCY? LONG TERM JOB PROVIDER OR SHORT TERM CONTRACTOR? REGIONAL OR NATIONAL? MINI EMPIRES OR NATIONAL BUSINESSES A LACK OF ACCOUNTABILITY & RESPONSIBILITY. LARGE AMOUNT OF DUPLICATION & MASSES OF CONFUSION MASSIVE, HIERARCHICAL MANGEMENT STRUCTURE OF NON-DISABLED PEOPLE KEPT AT AN ENORMOUS COST TO THE TAXPAYER? POCKETS OF BEST PRACTICE
In spite of all the problems, Remploy is still successful.

REMPLOY MANUFACTURING
3 Core Businesses
Remploy Furniture Group (RFG) Remploy Environmental Textile Automotive (RETA) Remploy Enterprise Production (REP)

REMPLOY MANUFACTURING NEW SALES

INTERNAL SALES TO ALL EMPLOYEES SITE SHOWROOMS/ CATALOGUES/ FLYERS WEBSALES NEW WEBSITES SALES TO LOCAL AUTHORITIES SALES TO GOVERNMENT DEPARTMENTS SALES TO TRADE UNIONS SALES TO CHARITY ORGANISATIONS DEVELOPMENT OF FAIR TRADE & REMPLOY ETHICAL TRADE MARK

BUILD UPON THE EXISTING SUCCESSFUL REMPLOY PRODUCTS, MARKETS & REPUTATION

REMPLOY MANUFACTURING REMPLOY LEARNING, TRAINING & DEVELOPMENT

Separate presentation also available

REMPLOY MANUFACTURING
Training and Development
The new Remploy will have structures in place to bring the best out of its employees which will in turn help the businesses to grow Enable & empower our own people to become trainers will ensure the smooth running within factories when key workers are otherwise engaged. Provide training for the purposes of developing the workforce and the businesses. Modern Apprenticeships, personal development of employees and on the job training. Supply training to local industries, local organisations. Trainees

REMPLOY MANUFACTURING Training for Industry

Our factories can provide Work Tasters for disabled people coming from benefits into work. Where better to get used to the work ethos than in Remploy Factories? As our business grows, we need to find people who express a preference to working in a factory rather than them being pushed into any job. CHOICE! The new Remploy will use initiatives to pass on learning and training facilities to external partners. -The mini Asda at Remploy Burnley was a venture that could have variations we could use. As well as supermarkets we could have bedrooms for training of hotel staff and the possibilities are endless in this trade. Other initiatives will be utilised to facilitate training and development such as; The Kitchen set up at the Remploy factory in Mansfield to assist people in life skills. The use of washing machines, microwaves, tumble dryers, and cooking skills gave people the opportunity to develop domestic skills that would improve their self esteem and quality of life.

REMPLOY MANUFACTURING
Remploy Learning, Training, & Development evolved from the ULF funded project and the partnership between the Trade Unions & the Company. Remploy Factories now have Learning centres which can generate income when our learners are not using them. The new Remploy Manufacturing Arm would maintain the core principals and continue to offer numeracy and literacy as life skills, while recognising the needs of those who are ready to progress along the learning trail, our centres are disability friendly & are equipped with adaptive technology. Courses to encourage the use of IT will be a benefit to the new regime as the use of technology becomes a greater part of every working day in Remploy Manufacturing. Learn Direct, ECDL and other IT courses can be offered.

Centres of Excellence for lifelong Learning

REMPLOY MANUFACTURING

A Clean, Green, Ethical Company

1 factory's waste to be another factorys raw material where possible e.g. Wood off cuts for bird tables, cardboard layer cards re-used etc. Cross Business Cooperation in Waste Management Energy Efficiency a priority Sustainability policy for raw materials Ethical Trading Policy with adherence to ILO Conventions and the ETI. (Ethical Trading Initiative)

REMPLOY MANUFACTURING Remploy Ethical Trading

Trade Mark The Remploy Manufacturing Trade Mark will be developed to ensure customers that Remploy products are Ethically Produced and sourced throughout the Supply Chain. It will show that the products are: Manufactured in as environmentally friendly way as possible Produced by disabled workers in the UK Of the highest quality Manufactured with the human rights of other workers in the Remploy Supply Chain in mind.

PUBLIC PROCUREMENT
Supported Factories and Businesses:
Reserving Contracts By indicating in the EU advert (the OJEU notice) that this contract is reserved for sheltered workshops under Article 19 of the Directive we are stating that only organisations with more than 50% disabled employees (from anywhere within the EU) can bid for this work. Supported factories and businesses can provide a wide range of goods and services. Details of the goods and services provided by supported employment organisations within England and Wales can be found on the On-line Supported Business Directory website at www.supportedbusiness.org. The Governments procurement policy is that ALL public procurement of goods and services is to be based on value for money. Value for money is defined as the optimum combination of whole life cost and quality to meet the user requirement

PUBLIC PROCUREMENT
Supported Factories and Businesses:
How many contracts should be reserved?

Contracting authorities should aim to have at least one contract with a supported factory or supported business. This may be for a niche product or service not provided by existing major contracts. In addition, main contractors should be encouraged to use supported employment organisations as subcontractors on public sector (and other) contracts.
Removing Barriers

In addition to reserving contracts, contracting authorities should ensure that there are no barriers to the participation of supported factories and businesses in procurement exercises more generally, in competition with other suppliers and service providers.

Solutions
Remploy should be the showcase Employer & champion for disabled people seeking employment, training, development, rehabilitation, support & assistance to getting & keeping a job. WE SHOULD BE ALLOWED TO LEAD BY EXAMPLE The Government needs Remploy to Invest in a Core business manufacturing strategy, Professionally & commercially ran, exploring & taking advantage of all opportunities in Public Procurement, Environmental, Ethical products, as well as existing traditional markets This will: 1) provide Employment, Training & Skills development 2) generate income so subsidy is reduced per person, allowing more people to be employed & assisted.

CONCLUSIONS
Unleashed potential & Full use of Factories Savings of 17 Million (against current spend). Show true cost of Subsidy per Capita of 12,000 & not the artificial inflated cost shown in the NAO Report. (See separate Report) New sales income of 45 million from exploiting Public procurement, learning & training, ethical markets. The Board are looking inwards at Remploys existing businesses markets where are the bigger picture analyses? What work has been done to study the public sector market where would Remploy fit into this market? What is Remploys role in the British Textile market what is its niche? What is the services market in the UK and what elements will Remploy attack?