8/2/2019 Remploy 4 041011

1/26

RECOVERY PHASE OF REMPLOY LTD

Compiled by:

The Remploy Consortium 2011

Phil Davies - GMB National Secretary and Secretary to the Remploy Consortium of Tradeunions

Kevin Hepworth Unite Officer and Chair to the Remploy Consortium of Trade Unions

Remploy 4 THE FUTURE

8/2/2019 Remploy 4 041011

2/26

One Remploy - Aims Manufacturing Enterprise Businesses &

Employment Services; Separately Accountable,independent businesses yet cross linked tocreate 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 fordisabled people seeking employment, training,rehabilitation, support & assistance in getting

and keeping a job

8/2/2019 Remploy 4 041011

3/26

TrainingLearningDevelopment

EMPLOYMENTSERVICES

OpenEmployment

ENTERPRISEBUSINESSES

A ONE STOP SHOP FOR DISABLED PEOPLE

RemployFactories

Apprentices Trainees

RehabilitationCareeraspirations

8/2/2019 Remploy 4 041011

4/26

ONE REMPLOY BOARDnot 3 separate ones!

Chair(Gratis)

Finance

DirectorManufacturing

DirectorEmployment Services

Director

Enterprise BusinessCCTV

Social Enterprise

Non Execs(Gratis) ChiefExecutive

RecruitmentRetention

Rehabilitation

HR Director

HR Team forEB & ES

4 DIRECTORS

ACCOUNTABLE & FOCUSED

8/2/2019 Remploy 4 041011

5/26

REMPLOYHEADOFFICECENTRAL FUNCTIONS

RemployEnterpriseBusiness

RemployEmployment

Services

ManagedServices

CCTV

Remploy

Factories

Return to Work

Recruitment &

Retention

Learning

Training&

Development

Open Employment

One RemployEnterprise Business

Employment Services

Disabled PeopleChoice!

8/2/2019 Remploy 4 041011

6/26

What must Stop?

Growth in Management populations

Management Incentive schemes whichdont achieve growth & sustainability(Bonuses over 1.7 million in 2011)

Company cars - 2.0Ltr petrol guzzlers;Expensive road tax and large insurance models; 3brackets of car or allowance

BUPa Private Health Insurance for SeniorManagers

Separate 50ths Pension scheme for Directors

unnecessary waste of tax payers money

8/2/2019 Remploy 4 041011

7/26

Develop StrategicGrowth Opportunities

- Government to support their desire/objective tomove work out of Government Departments and intoPublic Procurement Contracts

-Remploy is a not for profit contractor with previouscivil service spend being used to employ disabledpeople who would otherwise be benefit reliant

- Will to achieve politically acceptable manpower

reduction for Government and social/economicobjectives for Government

Engage with young people with Disabilities- trainees;apprenticeships; work tasters and work experience

(NEETS)

8/2/2019 Remploy 4 041011

8/26

Develop StrategicGrowth Opportunities

- Develop commercial business propositions andproducts/services based on pursuing ethical , fair

trade and green market segments including recycling.

- Partner and/or sell products and services to sociallyresponsible Companies who want to show their supportfor 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

8/2/2019 Remploy 4 041011

9/26

Demonstrating theSocial Worth ofRemploy

- The will to do more to relate Remploy to the communities weoperate in

- The will to engage with disability groups in the community

The Will to engage with Charity Organisations

- 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 alldisabled people on benefit in the community

- The will to set targets for promotion of disabled employees

inside Remploy into Management

8/2/2019 Remploy 4 041011

10/26

What the Trade unionssaid in September

2006 & 2007

8/2/2019 Remploy 4 041011

11/26

THE PROBLEMS IN A NUTSHELLGovernment want to move 1 million people offbenefits into work over the next 10 years.Remploy is given 111 Million grant fromgovernment (1/3rd of DWP budget)The Minister for Disabled wants a more efficientuse of the subsidy (& so do the Trade Unions).

Remploy Factories are in decline due to being rundown in favour of Interwork.Disabled Factory Employee numbers run down.Now at 5000 (Disabled numbers were 8,487 in1997, 10,331 in 1992).

Manufacturing work is not being sourced, costshave been continuously added to Factories withno added value in return.R21 strategy was working (Review letter fromC.E & chairman 2003 confirmed this fact) but R21

now ignored by current board.

8/2/2019 Remploy 4 041011

12/26

OTHER CONSIDERATIONSNew deal clients eligible from day 1 on sickness

benefits, easier to place into employment (ShawTrust)

Workstep eligible after 6 months on certain benefits,harder to place (Remploy - 60%)

Would Interwork be successful without RemployFactories? The answer is No

Where will long term benefit recipients be placed to

work?

Long term benefit recipients may never haveworked, are far from being job ready, fearful of work.

8/2/2019 Remploy 4 041011

13/26

OTHER CONSIDERATIONS

Are Interworkshopsthe way forward? Terms ofReference state: identify and developimplementation plans for new alternativebusiness models that recognise Remploys historyand traditions in employing and supportingdisabled people. The answer is No.

50% of all people helpedby Interwork end upback unemployed (between 6 months & 5 years)Why? The answer is that factories can supportwith rehabilitation. This means that 50% only

work up to 6 months.

The N.A.O Report is based upon RemployManagement supplied figures and centralrecharge costs. The Factories are being made to

pay for a massive Central Corporate Structure.

8/2/2019 Remploy 4 041011

14/26

CURRENT REMPLOY

COMMERCIAL ENTERPRISE OR TRAINING PROVIDER?

MANUFACTURER OR JOB AGENCY?

LONG TERM JOB PROVIDER OR SHORT TERMCONTRACTOR?

REGIONAL OR NATIONAL?

MINI EMPIRES OR NATIONAL BUSINESSES

A LACK OF ACCOUNTABILITY & RESPONSIBILITY.LARGE AMOUNT OF DUPLICATION & MASSES OFCONFUSION

MASSIVE, HIERARCHICAL MANGEMENT STRUCTUREOF 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.

8/2/2019 Remploy 4 041011

15/26

REMPLOY MANUFACTURING

3 Core Businesses

Remploy Furniture Group (RFG)

Remploy Environmental TextileAutomotive (RETA)

Remploy Enterprise Production (REP)

8/2/2019 Remploy 4 041011

16/26

REMPLOY MANUFACTURINGNEW SALES

INTERNAL SALES TO ALL EMPLOYEESSITE SHOWROOMS/ CATALOGUES/FLYERSWEBSALES NEW WEBSITESSALES TO LOCAL AUTHORITIESSALES TO GOVERNMENT DEPARTMENTSSALES TO TRADE UNIONS

SALES TO CHARITY ORGANISATIONSDEVELOPMENT OF FAIR TRADE &REMPLOY ETHICAL TRADE MARKBUILD UPON THE EXISTING SUCCESSFULREMPLOY PRODUCTS, MARKETS & REPUTATION

8/2/2019 Remploy 4 041011

17/26

REMPLOY MANUFACTURING

REMPLOY LEARNING,

TRAINING

& DEVELOPMENT

Separate presentation also available

8/2/2019 Remploy 4 041011

18/26

REMPLOY MANUFACTURINGTraining and Development

The new Remploy will have structures in place tobring the best out of its employees which will inturn help the businesses to growEnable & empower our own people to becometrainers will ensure the smooth running withinfactories when key workers are otherwiseengaged.Provide training for the purposes of developingthe workforce and the businesses.Modern Apprenticeships, personal development ofemployees and on the job training.Supply training to local industries, localorganisations.Trainees

8/2/2019 Remploy 4 041011

19/26

REMPLOY MANUFACTURINGTraining for Industry

Our factories can provide Work Tasters for disabledpeople coming from benefits into work. Where better to getused to the work ethos than in Remploy Factories? As ourbusiness grows, we need to find people who express apreference to working in a factory rather than them beingpushed into any job. CHOICE!

The new Remploy will use initiatives to pass on learningand training facilities to external partners. -The mini Asdaat Remploy Burnley was a venture that could havevariations we could use. As well as supermarkets we couldhave bedrooms for training of hotel staff and thepossibilities are endless in this trade.

Other initiatives will be utilised to facilitate training anddevelopment such as; The Kitchen set up at the Remployfactory in Mansfield to assist people in life skills. The use ofwashing machines, microwaves, tumble dryers, andcooking skills gave people the opportunity to developdomestic skills that would improve their self esteem andquality of life.

8/2/2019 Remploy 4 041011

20/26

REMPLOY MANUFACTURINGCentres of Excellence for lifelong

LearningRemploy Learning, Training, & Development evolvedfrom the ULF funded project and the partnershipbetween the Trade Unions & the Company. RemployFactories now have Learning centres which cangenerate income when our learners are not using

them.The new Remploy Manufacturing Arm would maintainthe core principals and continue to offer numeracyand literacy as life skills, while recognising the needsof those who are ready to progress along the learningtrail, our centres are disability friendly & are equipped

with adaptive technology.Courses to encourage the use of IT will be a benefit tothe new regime as the use of technology becomes agreater part of every working day in RemployManufacturing. Learn Direct, ECDL and other ITcourses can be offered.

8/2/2019 Remploy 4 041011

21/26

REMPLOY MANUFACTURING

A Clean, Green, Ethical Company1 factory's waste to be another factorysraw material where possible e.g. Wood offcuts for bird tables, cardboard layer cards

re-used etc.Cross Business Cooperation in WasteManagement

Energy Efficiency a priority

Sustainability policy for raw materials

Ethical Trading Policy with adherence toILO Conventions and the ETI. (Ethical

Trading Initiative)

REMPLOY MANUFACTURING

8/2/2019 Remploy 4 041011

22/26

REMPLOY MANUFACTURINGRemployEthical Trading

Trade MarkThe Remploy Manufacturing Trade Mark will bedeveloped to ensure customers that Remployproducts 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 UKOf the highest qualityManufactured with the human rights of other

workers in the Remploy Supply Chain in mind.

8/2/2019 Remploy 4 041011

23/26

PUBLIC PROCUREMENTSupported Factories and Businesses:

Reserving ContractsBy indicating in the EU advert (the OJEU notice) that this contract isreserved for sheltered workshops under Article 19 of the Directivewe are stating that only organisations with more than 50% disabledemployees (from anywhere within the EU) can bid for this work.

Supported factories and businesses can provide a wide range ofgoods and services.

Details of the goods and services provided by supported employmentorganisations within England and Wales can be found on the On-lineSupported Business Directory website at

www.supportedbusiness.org.

The Governments procurement policy is that ALL publicprocurement of goods and services is to be based on value formoney. Value for money is defined as the optimum combination ofwhole life cost and quality to meet the user requirement

8/2/2019 Remploy 4 041011

24/26

PUBLIC PROCUREMENTSupported Factories and Businesses:

How many contracts should be reserved?

Contracting authorities should aim to have at leastone contract with a supported factory or supportedbusiness. This may be for a niche product or servicenot provided by existing major contracts. In addition,

main contractors should be encouraged to usesupported employment organisations as sub-contractors on public sector (and other) contracts.

Removing Barriers

In addition to reserving contracts, contracting

authorities should ensure that there are no barriers tothe participation of supported factories andbusinesses in procurement exercises more generally,in competition with other suppliers and serviceproviders.

8/2/2019 Remploy 4 041011

25/26

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 BEALLOWED TO LEAD BY EXAMPLE

The Government needs Remploy to Invest in a Corebusiness manufacturing strategy, Professionally &commercially ran, exploring & taking advantage of allopportunities 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.

8/2/2019 Remploy 4 041011

26/26

CONCLUSIONSUnleashed 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 NAOReport. (See separate Report)

New sales income of 45 million from exploiting

Public procurement, learning & training, ethicalmarkets.

The Board are looking inwards at Remploys existingbusinesses markets where are the bigger pictureanalyses?

What work has been done to study the public sectormarket where would Remploy fit into this market?What is Remploys role in the British Textile market what is its niche? What is theservicesmarket in theUK and what elements will Remploy attack?