5

BOROUGH OF POOLE

LOCAL ECONOMY OVERVIEW GROUP – THURSDAY 5 JULY 2007

REPORT OF THE HEAD OF STRATEGIC PLANNING SERVICES AND THE HEAD OF ADULT SOCIAL CARE AND WELLBEING ON

REMPLOY, POOLE

1.PURPOSE OF THE REPORT

1.1To consider the proposed closure of the Remploy factory at Alder Hills and the following petition, referred to LEOG at the Council meeting on 19 June 2007.

"We, the undersigned, call upon Poole Unitary Authority to protest to the highest levels possible against the proposed closure of the REMPLOY factory at Alder Hills. This Factory produces quality products to the highest standards and has an excellent reputation both within the UK and abroad"

2.RECOMMENDATION

2.1That the Overview Group considers a response to the referred petition in the light of this report, and endorses the efforts being made by officers to work with Remploy and other stakeholders to ensure appropriate alternative provision should the factory close as is currently proposed.

3.BACKGROUND

3.1In 2005, Remploy, the national agency that provides employment services for disabled people, was the subject of a critical National Audit Office report that highlighted shortcomings in the cost effectiveness of the service provided. This resulted in a national review, conducted by Price Waterhouse Coopers in the Spring of 2006, which precipitated consultations with the Unions that represent workers in the various factories.

3.2Remploy has over 80 factories across the country, employing about 6,500 people. This utilises 85% of Remploy’s funding but with the remaining 15% they are able to place 5 to 6,000 disabled people into mainstream employment each year. There is no prospect of increasing the employment capacity of the existing factory stock but it is proposed that the restructuring would allow Remploy to place up to 20,000 people into mainstream employment each year. This is the basis of their claim that they can quadruple the numbers of disabled workers able to come off benefit and into employment. It is worth noting that our own Adult Social Care and Wellbeing Unit is able to support significantly more disabled people in mainstream employment than are accommodated at Alder Hills and at half the cost per capita.

4.THE PROPOSED CHANGES

4.1The results of the national review were published on 22 May 2007, with accompanying press releases and a meeting with MPs in the House of Commons. Clearly, the nature of this service makes it a sensitive issue. Of the 83 factories across Britain, 32 are to close with a further 11 merging with nearby sites. Of the 6,500 disabled employees, 2,270 are affected. Assurances have been given that there will be no compulsory redundancies.

4.2Poole, which loses over £800k per annum, is one of the factories to close, the intention being to concentrate marine textile manufacture at the Leven plant in Scotland. 42 disabled and 5 non-disabled staff are affected at Poole. There is a 90-day consultation period, running until the end of August. The promised “no compulsory redundancy” policy offers staff three options:

  • Retirement and voluntary redundancy for those over 55;
  • Voluntary redundancy and assistance with the process of finding alternative employment; or
  • Remaining as an employee of Remploy, with the same terms and conditions, but placed in mainstream employment.

4.3 It is worth noting that the British Association for Supported Employment has responded positively to this review, with 6 disability charitiesbacking the action. The general consensus from Supported Employment providers is that sheltered factories are not sustainable and that the funding is better used in supporting people to find work in mainstream employment.However, the relevant Union has opposed it and there are those that believe there is a place for this type of facility for people with particular kinds of disability. Indeed, there are concerns that a number of members of staff have worked at the Poole factory for over 20 years and would find the change difficult to cope with.

5.THE COUNCIL’S RESPONSE

5.1Following the Price Waterhouse Coopers review, the Head of Strategic Planning met the local manager, David Puckett, and Annette Brooke MP on site to understand the nature of the operation and the potential for making wider use of the facility. Both were concerned at the possible outcome of the review and Mr Puckett had some very sensible ideas about expanding the role of the facility to include training to enable people with disabilities to get back to work.

5.2This was followed this up over the ensuing months by engaging with:

  • The Council’s Adult Social Care and Wellbeing Unit;
  • The LSC, about the possibility of including such a training facility within their Train to Gain initiative; and
  • Investigating the possibility of including these ideas within our Local Area Agreement.

In the event, these proved unachievable.

5.3Officers have engaged with Bob Warner, Chief Executive of Remploy, and Guy Phillips, the Company Secretary, and a team, including officers of Strategic Planning and Adult Social Care and Wellbeing, has been put in place to work with Remploy, Job Centre Plus, the Learning and Skills Council, and the Bournemouth and Poole College to ensure that, should there be closure of the Poole factory, this process is as positive as possible. In particular, there is scope for securing access to additional training and advice to ensure that the numbers of people placed in mainstream employment is maximised.

David Ralph, Head of Strategic Planning27 June 2007

Charlie Sheldrick, Head of Adult Social Care and Wellbeing

Name and telephone number of officer contact: David Ralph 01202 633327

Background Papers: Relevant Remploy press releases may be found on