RPA - What it means for you

1. RPA - What it means for you Patrick Mullarkey Campbell Fitzpatrick Solicitors

2. Background • RPA launched in June 2002 • 1 April 2007 - 18 Trusts became 5 • “Super Trusts” acquired liabilities of former organisations • If employed before transfer then employed on same terms with organisation • First tangible manifestation of RPA

3. Principles • Not my purpose to consider policy • Government commitment to protect staff interests • Engagement between Gov. and Unions • Public Service Commission (PSC) set up on 8March 2006 • PSC recommendations to safeguard staff

4. Effect of RPA • You have transferred to new employer • Advised that “TUPE” applies to transfers • Regulations protect employee rights • Restrains variations of terms of employment • Protection is limited, terms can be varied • Economic, technical and organisational reasons - ETOs

5. Occupational Pensions • TUPE does not apply to occupational pensions • Government assurance that pensions will be protected • “same as” or “not less favourable” • Query as to application of TUPE in this case - whether “relevant transfer”

6. HPSS Human Resources Framework • Long on principle, short on detail • Purports to set out arrangements for staff management • Principles and High Level statements • Tells us very little about what will happen • Supplemented by Staff Transfer Scheme STS

7. Staff Transfer Scheme • STS guaranteed that staff would be assigned to new employer on transfer • That has been achieved • Does not inform as to next steps in management of staff • No guarantee of staff retention as trusts restructure

8. Assurances by Gov. • Through mechanisms of vacancy control, alternative employment, early retirement and voluntary redundancy • Hoped to avoid compulsory redundancy • “Every reasonable effort” made to avoid compulsory redundancy • However refused to rule out compulsory redundancy

9. Position Now • New trusts cover your contracts • Contracts are effective from date of commencement with old employer • Dispute resolution through Internal grievance procedures - E (NI) Order 2003 • Rights to complain, representation and appeal - Tribunal access • Pension disputes to Ombudsman

10. So Far, So Good? • Transfer largely accomplished without difficulty • Not surprising - only legal change to date • Substantive re-organisation imminent • Difficult to predict in practice what this means for you • Dearth of concrete information coming from Gov. or employers

11. Understanding the Process • Look at the context - threefold intention • Develop more effective system • Improve patient services • Generate savings to re-invest • Process is supposed to be underpinned by fairness, dignity and equity - Law • Trusts to deal with Sub-Director level staff • Trusts to deal with “displaced staff”

12. No Guarantee of Staff Retention • Referred already to hope to avoid compulsory redundancy • Appointment and selection procedures will arise • Fair, transparent and to meet legislative requirements • “Merit Principle” applies - yet to be demonstrated in practice

13. Experience to date • Chief Executive posts filled - 5 in, 16 out • 2nd level posts filled - staff fallout not as great as expected • Displaced staff have competed for or been appointed to 3rd level posts - Trickledown • Impact on staff - suggested 1800 posts to go

14. Impact on Staff Numbers • Who knows? • Information is limited and available only to those implementing the re-organisation • 1800 job losses - accurate • £30M saved if 250-300 posts go • £55M saved if 900-1200 posts go • Gov. hopes to save £340 by 2012 -of which £83M to come form staff reduction!

15. Leaner and Meaner • There will be significant number of staff without a new post • Numbers will have to be reduced • Gov. has repeated mantra of vacancy control etc • No time scale published for completion of the process

16. Filling Posts • Posts being filled by open competition within the RPA affected group • You are expected to co-operate with process,to actively seek alternative work • Even if at lower level • If not successful then consideration given to voluntary redundancy and early retirement

17. Filling Posts • Where need arises to fill a new or substantially new post then open competition • Applications from group most likely affected • Recruitment must comply with law • External recruitment is “unreasonable” • Conceded that number of posts will exceed candidate numbers

18. Unsuccessful Candidates • If no post and not re-deployed then • Voluntary redundancy, early retirement compulsory redundancy • Latest info is that once 3rd level structures published then expressions of interest to be sought re VR • Criteria for consideration for VR

19. Criteria for Voluntary Redundancy • Staff will not be released where it leads to skills shortage • Will consider if it avoids compulsory redundancy • Must be financially viable - payback period • Lowest cost will go first • Provisional criteria - may be relaxed

20. Affordability • Payback Period - divide redundancy payment plus pension cost by gross salary cost • eg £80k salary - cost of package £160k • Payback period is 2 years • Acceptable payback period stands @ 2.5 to 3.25 • Note - while interest is sought no decisions will be made until structures filled

21. No Job? • If you don’t get new post, re-deployed, voluntary redundancy or early retirement ? • You will be at risk of compulsory redundancy • Redundancy where requirements of business change. Fair reason to dismiss • Employer must identify area to be affected

22. Redundancy Situation • Identify number of posts to go • Formulate criteria to select candidates • Set out timetable • Consult with affected employees and representatives • Consider other measures • Define terms which are proposed

23. Redundancy situation • Before making redundancies • Employer should try to find suitable alternative employment • In a nutshell what is required: warning , consultation, fair criteria, alternative employment

24. Redundancy situation • Crieria for selection • Atendance record • Experience and capability • LIFO • This is the traditional method but must stress that it is wholly unclear what is being applied in this process

25. Suitable Alternative Employment • Finally , redeployment should be considered • If refused then can affect entitlement to redundancy payments • Suitability depends on pay, status, capability, qualifications, location, working environment, hours etc

26. RPA - What it means for you Questions