Derbyshire Support & Facilities Services (DSFS) Update 3: March

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1 Derbyshire Support & Facilities Services (DSFS) Update 3: March We ve had four staff drop-in sessions since we last circulated a briefing (March ). There are a few more questions people have asked about the subsidiary and its implementation and we ve responded to those below. We ve added these to the points you ve already raised in the last three weeks so this is a growing document but you have everything in one place as a result. If there s something you ve asked that isn t answered on this week s briefing it s likely to be because we need to find out more information before we can respond or this update was issued before we d had chance to factor the query in. We ll pick up these next time around. Questions received March Q1: Can staff who are part of DSFS still take part in Council of Governor elections to be a staff governor? Yes. The Chesterfield Royal Hospital NHS Foundation Trust constitution (a constitution sets out how an organisation is governed) has a section on qualifications for membership of the staff constituency. This includes membership for staff that are not employed by the Trust, but carry out work on its behalf and for its functions. There are other criteria for all staff that determine if they can stand for a seat on the Council, nevertheless it means that in principle staff working for DSFS can nominate themselves for an appropriate governor seat. You can find out more here: Q2: What was the outcome of the NHS Improvement Resource Committee meeting on March ? Did they give the go-ahead for the asset transfer at the end of the month to formalise the subsidiary? NHS Improvement moved its Resource Committee back to March This is due to the Regulator requesting an additional independent auditor review of our business case, above and beyond that already supplied by our advisers QEF the well-established subsidiary of Gateshead Health NHS Foundation Trust. This additional step was not included in the new NHSI policy and guidance for establishing subsidiaries, although we recognise the need for a robust assurance process. The postponement means the timescale for go-live is very tight. However, providing NHSI give green or amber assurance on the 27 th the company can still be in place as planned, by month end, with staff transferring over to DSFS on April Q3: Are there plans to meet with staff again to give them the official position? Yes. Briefings have already been set up, working on the basis that we ll have a response from NHSI after they meet: Thursday 28 th March 2019 Friday 29 th March 2019 Team Time Location Time Location Procurement Procurement Retail Retail Office Retail Office Domestic & Catering Lecture Theatre 10:00 Lecture Theatre Lecture Theatre 14:00 Lecture Theatre Lecture Theatre Lecture Theatre Lecture Theatre Estates and Admin Estates Linen and Post Linen Room Page 1 of 11

2 Residences Ash Court Porters Team Leaders Q2: You said you would mirror Agenda for Change in the new DSFS terms and conditions so why are the bandings you issued last week indicating that pay is reduced? They are different from what s in the business case and other communication you have issued. We re sorry that the information we ve issued has led to some confusion, however we can confirm that this was purely presentational and that the bandings for new starters into DSFS have not been reduced from the approved business case. The original business case was based on 17/18 national payscales. The NHS removal of Band 1 has also been factored in on some materials and DSFS terms and conditions use a letter scale, rather than Bands 2-9. We have standardised the pay scales so there s a read across. We ve set them out below, along with an update to reflect pay scales that will come in for the new financial year on April Initial business case pay scales based on 17/18 AfC rates Scales Porters Lodge Porters Lodge Security Team Leaders Theatre Porters Patient Escorts Security Corrected DSFS pay scales based on 18/19 AfC rates TBC To join in with retail meetings? Clinical Engineering Clinical Engineering Finance - 27 th MARCH Small Finance Meeting Rm ICT ICT Switchboard Switchboard Patient Records Patient Records Dept Scales DSFS pay scales from April based on 19/20 rates Scales Grade A 14, Grade A Grade A Grade B Grade B Grade B Grade C Grade C Grade C Grade D Grade D Grade D Grade E Grade E Grade E Grade F Grade F Grade F Grade G Grade G Grade G Grade H Grade H Grade H Page 2 of 11

3 Questions received March Q1: Can you remind us what TUPE measures were set out and shared at the start of the staff consultation process? On August all staff received a letter outlining the staff consultation process and the protections they d receive through TUPE. The letter also set out five measures of potential change including a change of line management for a handful of staff and new uniforms, along with the possibility of new ways of recognising long service and staff recognition. It also set out more than 30 measures that would remain exactly as they are now from your pay, pension (if you re in the NHS scheme) and three-year pay deal, through to your ability to access Trust services such as the staff lottery, staff wi-fi and the on-site nursery. A copy of this letter can be found at the end of this briefing (Appendix A). Q2: The Trust said existing staff could consider taking up DSFS s terms and conditions if they would prefer to do that. Is that still an offer for anyone that does not want to stay protected by TUPE when they transfer and what do DSFS terms and conditions look like? DSFS terms and conditions largely mirror those of the NHS in so far as pay, annual leave, sick pay etc. is concerned. However, the pension offer for new employees and enhancement rates is different. Question three explains more about the pension. For any staff on DSFS terms and conditions there will only be one rate paid for overtime and enhancements. That rate is 40% and it will be applied to all unsocial hours payments, regardless of the shift worked. The current terms and conditions for DSFS look like this: Pay Grades: Grade b Grade f Grade c Grade g Grade d Grade h Grade e Grade I Other: Nest Pension - chose of 5% or 8% contributions Mileage Less than 10k miles 45p/mile Enhancements 40% More than 10k miles 25p/mile Overtime Time + 40% Annual Leave On joining: 27 Days On Call Existing arrangements After 5 years: 29 days Policies No change After 10 years: 33 days Q3: What does the pension offer look like for staff on DSFS terms and conditions and can transferring staff opt to move their pension from the NHS pension scheme to the NEST pension that will be offered by DSFS? The rules and regulations around pensions are complex and we can only provide you with the facts. You should always seek specialist advice if you re making decisions about your pension arrangements, especially if it involves a significant change from what you have now. There is a legal requirement for workplaces to automatically enrol staff into their company pension scheme. So what does that mean for staff transferring into DSFS or joining the company? We ve got some scenarios here that staff have asked about - to give you an idea of the rules that apply and the options that are potentially open to you: Scenario 1: If you re transferring into DSFS and you are already in the NHS pension you ll transfer across with that pension and everything associated with it (pay, length of service, annual leave and sick pay) protected under the TUPE arrangements we described when the staff consultation started (see Q1). That protection is for the lifetime of the contract DSFS has with the Trust 25 years in the first instance. If you re thinking about coming out of the NHS Pension Scheme once you transfer take a look at scenario 3 to see what s involved. Page 3 of 11

4 Scenario 2: If you re transferring to DSFS and you re NOT currently in a pension scheme you will have to be automatically enrolled into the NHS Pension Scheme as long as you are eligible to join it. You d not be eligible to access the scheme for example if have already taken your NHS Pension and returned to work. If you d prefer not to be in the NHS Pension Scheme once you ve transferred take a look at scenario 3 to see what s involved. Scenario 3: Once the transfer has taken place you might want to leave the NHS pension and join the DSFS Group Personal Pension (Nest) Scheme instead. DSFS will make this scheme available to you. It will be established by the wholly-owned subsidiary with a contribution of 5 or 8% of salary, matched by the company to an 8% maximum. To leave the NHS pension scheme you ll have to download a form (known as an SD502) from the NHS Pensions website. Once you ve completed and signed it you can return it to the Payroll/Pensions department. This is exactly the same process any eligible member of NHS staff would have to go through if they wanted to leave the scheme. It is a legislative requirement and not something specific to the wholly owned subsidiary. *IMPORTANT INFORMATION* It is a legal requirement for employers to automatically enrol staff into their workplace pension, and re-enrol them periodically if they are eligible EVEN IF THEY HAVE OPTED OUT PREVIOUSLY. So, if a staff member who is eligible to be in the NHS Pension Scheme choses to leave and join the DSFS pension scheme they should be aware that they will be re-enrolled at least every three years into whichever scheme they are eligible to and not their scheme of choice, and will have to opt out again when this happens. Scenario 4: New staff joining the wholly-owned subsidiary can t have access to the NHS Pension. Instead they ll be able to join a Group Personal Pension Scheme (established by the wholly-owned subsidiary) with a contribution of 5 or 8% of salary, matched by the company to an 8% maximum. Scenario 5: If you transfer to DSFS with the NHS Pension protected by TUPE, leave the company and re-join at a later date that protection will have expired. You would not be able to re-join the NHS Pension in this scenario instead you d join the DSFS Group Personal Pension (Nest) Scheme outlined in scenario 4 above. Scenario 6: If you ve returned to work and you re already a member of the Trust s current Nest Scheme you ll remain in that scheme when you transfer over to DSFS unless you want to consider another option and you choose to opt out of it. Scenario 7: If you re transferring to DSFS and you re NOT currently in a pension scheme - and not eligible to join the NHS pension scheme - you will have to be automatically enrolled into the DSFS Group Personal Pension. Scenario 8: If you ve returned to work and you re already a member of the Trust s current NEST Scheme you ll remain in that scheme when you transfer over to DSFS. If you would prefer to transfer from the current Trust NEST scheme into the DSFS Group Personal Pension (NEST) Scheme, we can support this. However, you ll need to be aware that there are different qualifying earnings rules set up against the DSFS NEST scheme. Q4: Will DSFS continue to offer Apprenticeships and will it still be contributing to the Apprenticeship Levy? Yes. Contributions to the Apprenticeship Levy are mandatory for an organisation the size of DSFS. We will continue to support apprenticeships as an important part of growing our own skilled workforce and to make sure we provide our people with opportunities for development and ongoing education. Many of the services that are set to transfer to DSFS already offer a great range of apprenticeships and they will continue to do so. Page 4 of 11

5 Q5: Will DSFS have a Staff Forum? Initially, staff forum representatives transferring into DSFS will be encouraged to continue to attend the Trust s Staff Forum - to recognise that the company is wholly-owned by the Trust and that its staff, as part of the Chesterfield Royal family. We are keen for our people to continue to have input into the Trust and issues that staff from across the organisation bring to Forum for consideration. DSFS will also ensure that a Director is in attendance. Going-forward, if our staff feel there s a need, we can always consider creating our own Forum specifically for our teams. Q6: Will DSFS have its own Staff Partnership Committee? Yes. DSFS want to replicate and maintain positive relationships with staff partners and union representatives. We re in the process of determining how this could work in the subsidiary with the help of the Trust s existing Staff Partnership Committee chair and other committee members. Q7: Will DSFS have a People Committee? The Trust s People Committee is a formal sub-committee of its Board of Directors. DSFS will have a separate management and governance structure, so it will need to have its own Board. There will not be a formal People Committee; instead the functions it performs will be met by the DSFS Board and wider governance arrangements. Q8: Will staff that transfer still be able to access courses offered by the East Midlands Leadership Academy (EMLA)? Yes. EMLA has confirmed DSFS employees would continue to be recognised as part of Chesterfield Royal Hospital NHS Foundation Trust and so all staff would still have access to its course. Q9: Will I still be able to access support from the Freedom to Speak Up Guardian in the Trust or get involved in other engagement like Listening into Action or Quality, Service Improvement and Redesign (QSIR) Absolutely. All colleagues in DSFS, as part of the Chesterfield Royal Hospital family, will still be able to raise any concerns about patient care and safety and the effectiveness of the services we provide. Anything raised with us through the Guardian will be listened to, taken seriously, investigated and appropriate action will be taken when needed. Likewise all DSFS teams will still be able to lead and champion change and improvement across the organisation. Over the past two years staff in IT, finance, procurement, clinical engineering, estates and facilities have already achieved some fantastic improvements, making a huge difference to patient care, the services we provide and the places we work in. We want this to continue and will support staff who want to bring their ideas and suggestions to life. Q:10: Did NHS Improvement (NHSI) review our business case at their Resources Committee? We thought that this was happening on March if it did, why have we not had an update? We have been advised by NHSI that their review will now take place later this month and we understand that it s planned for March We ll provide an update as soon as we hear the outcome. Page 5 of 11

6 Q11: Can we continue to ask questions and meet the directors of DSFS? Yes. A number of informal drop-in sessions have been arranged. They re open to any staff and their representatives and will be used to pick-up questions, issues or concerns: 13 March :00 14:00 Room 3b, Education Centre 15 March :30 13:30 Conservatory, Education Centre 19 March :00 12:00 Room 1, Education Centre 21 March :00 16:00 Room 1, Education Centre 26 March :30 13:30 Small Innovation Centre Room 28 March :00 11:00 Small Innovation Centre Room 1 April :00 12:00 Small Innovation Centre Room 4 April :00 11:00 Small Innovation Centre Room 8 April :30 12:30 Small Innovation Centre Room 10 April :00 13:00 Small Innovation Centre Room 16 April :30 13:30 Small Innovation Centre Room 18 April :00 13:00 Conservatory, Education Centre Questions received March Q1: Can you remind me what a wholly-owned subsidiary is? They are basically organisations that NHS providers can legally adopt to manage part of their organisation. In setting up a wholly owned subsidiary, NHS trusts retain 100% of the company, ensuring that the organisation, staff and funding remains within the NHS family. Q2: Why does the Board of Directors feel a subsidiary is the best option? What alternatives are there? If DSFS goes ahead as planned it will keep our IT, finance, procurement, clinical engineering, facilities and estates services in the Chesterfield Royal Hospital NHS Foundation Trust family. The Board of Directors believes this effectively protects them from the risk of outsourcing to the private sector, redundancies or reduced staffing numbers all of which could be possible alternatives in a challenging financial climate. A subsidiary is able to run healthcare facilities and support services on a more commercial footing - to best practice quality standards and in a cost-effective way that gives the public value for the money they put into the NHS. Q3: I m concerned about the changes to Band 1 posts and how this will affect me in DSFS This is a national alteration to pay banding and is part of the 2018 pay deal. If you re affected by the change the Trust will be sending you a letter (week commencing March ) to explain more about the choices you ll be given in respect of remaining on Band 1 or moving to Band 2. The Trust (and therefore DSFS) has confirmed that it will be meeting all the national guidelines for the change including pay protection. ENDS March Page 6 of 11

7 Appendix A Director of Finance s Office Telephone: IN CONFIDENCE 14 August 2018 Dear Colleague Your Transfer to Derbyshire Support and Facilities Services (DSFS) You will know that at its meeting on 25 July following a three-month period of staff engagement and the exploration of setting up an independent company - the Board of Directors discussed a business case proposing the creation of Derbyshire Support and Facilities Services (DSFS). This proposal was approved. The Board was clear that it wants to see the creation of this wholly-owned subsidiary carried out in a well-thought out and properly executed transfer process and in a way that respects the 700 staff affected by its decision. I am writing to you today to initiate the start of the consultation in line with the Transfer of Undertakings, Protection of Employment (TUPE) Regulations; explain how a TUPE transfer works (including any measures which are proposed to change as well as everything that will stay the same) and describe the next steps. We also want to tell you that, as part of a subsidiary that is 100% percent owned by us - the NHS Foundation Trust (the Trust) - the Board s priority is that you remain firmly within the Chesterfield Royal family with all the protections you are entitled to receive. What services will transfer to DSFS and by when? These are the services in the scope of the wholly-owned subsidiary: Finance, ICT (including Patient Records), Procurement, Estates, Facilities, Clinical Engineering and all other posts which provide essential facilities support to the Trust such as our Theatre Porters, Theatre Storekeepers, Patient Escorts and the Education Centre Reception. You are receiving this letter because your role falls within one of these groups - and it will move across to the new company. It is expected that your transfer to DSFS will take place on 1 December 2018 (subject to conclusion of the TUPE transfer consultation process). What happens now? The next step involves a full consultation with all staff affected, covering the practicalities of the transfer to DSFS. It is not a consultation about the Board s decision to go-ahead with a wholly-owned subsidiary company. You will be offered the opportunity to talk about your role, the proposed measures and what will stay the same together with the proposals for how you will move across into DSFS under TUPE. What does TUPE provide? TUPE means you ll transfer with the legal protection applied to the current conditions of your NHS Pension; Pay (including enhancements, overtime, and on-call allowances); Sick Pay and Annual Leave, plus other key elements. Page 7 of 11

8 Your transfer conditions are legally protected under TUPE while ever you work for the wholly-owned subsidiary, which will have an initial contract with Chesterfield Royal Hospital NHS Foundation Trust for 25 years. Just like NHS employees though there could be adjustments in years to come that might affect you (for example if there were national changes brought about by the NHS Pensions Agency; or an unforeseen economic, technical or organisational (ETO) issue to address). In ETO circumstances, as in the NHS, the company would have to consult you on any proposals. When does the consultation start? Consultation on the TUPE process starts from today: 14 August 2018 and completes on 26 October As you will see in the Trust s Organisational Change Policy, we normally consult for a period of 30 days, however, due to the volume of colleagues involved in this transfer the Trust has made the decision to significantly extend this time frame to ensure the consultation is as meaningful as possible. What is the consultation for? The consultation gives you an opportunity to ask questions and to discuss any concerns you have about your TUPE transfer. You can book a one to one meeting with a senior manager, or request a joint meeting with a colleague. You are entitled to bring a trade union representative with you to your meeting, or you can choose to be accompanied by a work colleague. It is your responsibility to arrange union attendance at your meeting. Your Staff Side Chair and local UNSION and UNITE representatives have also been briefed on the consultation process so they know when it is taking place. Contact details can be found at the end of this letter. As well as individual or joint meetings, we will plan team meetings in which we can further discuss any questions you may have. Details of these meetings will be communicated at the start of the consultation period. If you would like more information on the consultation process, a copy of the Trust s Organisational Change Policy can be found on the intranet. How do I book a meeting? At the start of the consultation period your senior leader or manager will share details of how you can book an individual meeting or joint colleague meeting. The decision to create a wholly-owned subsidiary was not made lightly and was noted by the Board as the most difficult decision it has had to make since the hospital became an NHS Foundation Trust. Around 70 members of staff, trade-union representatives, governors and members of the public observed the discussion. This decision was made on the basis that we believe it will safeguard these essential support services and your jobs, protecting them from alternative options including outsourcing to the private sector and reducing the workforce. On behalf of the Board I would like to thank you for your continued support, commitment and hard work. We know this remains a worrying time for everyone affected and our job now is to support you through the transfer process and to address any concerns you may have. Please read through the protections in place for you and your colleagues on page 3 of this letter. As I outlined at the start of this letter the Board see Derbyshire Support and Facilities Services as an extension of the Chesterfield Royal family. By working in partnership with you we can create an exciting future for the staff who make up the valuable and essential support services our clinical colleagues rely on to provide the best possible patient care. Yours sincerely Lee Outhwaite Director of Finance and Contracting Page 8 of 11

9 Contacts: You can contact our Local Union representatives as follows: Bridget Dunks: for UNISON and Dean Collins: for UNITE. Our Staff Side Chair, Sarah Harrington-Pollock: can also be contacted for support. Alternatively, you can call the Staff Partnership Office number on If you have any concerns regarding the process, these can be raised directly with your manager, your trade union representative or Holly Fogden, Human Resources Partner: x3921, Sarah Cooper, HR Project Manager: x2879 or Abigail Caudwell, HR Coordinator: x2970. What does transferring to a wholly-owned subsidiary mean for me? We re keeping the same number of staff in all the services, so just over 700 people will transfer to DSFS. The Trust has put together a process of transfer that ensures people do not face any negative impact in relation to their terms and conditions and other benefits they can access. The tables below set out measures of your employment that fall within TUPE regulations and everything that will stay the same. If any other measures or benefits are identified during the consultation they will be discussed with you and your trade union representatives. If you have any further questions about the content of the tables, please raise them throughout the consultation process with your manager or via to crhft.dsfs@nhs.net. Measures that will change on transfer The line management structure for some individuals and teams Long service awards APPLAUSE recognition awards Uniforms Trust intranet access Swipe Cards Transferring to DSFS For a few individuals and teams, this will change to ensure that everybody has a line manager within DSFS. This will be confirmed and discussed during your consultation meeting. DSFS will create its own version for its staff. This will not be detrimental to staff from the current Trust policy. DSFS may create its own version. DSFS staff will be engaged in the selection of new DSFS uniforms as part of the transfer. These will display both the NHS identity and the DSFS brand. DSFS staff will still be able to access the Trust intranet and in future DSFS may create its own site New swipe cards will be issued with the new company name Page 9 of 11

10 Everything that will stay the same Transferring to DSFS Pay date on the 25 th of every month Stays the same Basic pay/enhancements/on-call/overtime Stays the same NHS Pension Stays the same 3 year NHS Pay deal Stays the same Annual leave entitlement and uplifts Stays the same Buying and selling annual leave Stays the same Sick pay Stays the same Maternity pay Stays the same Paternity pay Stays the same Adoption pay Stays the same Your current contracted working hours Stays the same The location you work in Stays the same Flexible working opportunities Stays the same Working in your current department and team Stays the same Access to on-site car parking and discounted multi-visit passes Stays the same Swipe card access Stays the same Use of the on-site nursery Stays the same Childcare vouchers Stays the same Cycle to work schemes and discounted bus travel Stays the same Access to staff Wi-Fi Stays the same NHS Discounts and benefits Stays the same On-site staff catering outlet discounts Stays the same Access to health and well-being activities and classes Stays the same Choir@theRoyal Stays the same Staff Lottery Stays the same Staff Forum (in future DSFS would like to have its own forum) Stays the same Current policies and procedures outside of TUPE conditions (DSFS may work Stays the same with you to create new policies in future that are better suited) Recognition of your trade union Stays the same The NHS brand you ll wear the NHS lozenge/dsfs brand on uniforms and badges Page 10 of 11 Stays the same

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