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Chamber and committees

Finance Committee, 22 Feb 2005

Meeting date: Tuesday, February 22, 2005


Contents


Relocation of Public Sector Jobs

The Convener (Des McNulty):

I welcome members of the press and public to the sixth Finance Committee meeting in 2005. I remind people to turn off their pagers and mobile phones. We have apologies from John Swinburne and Ted Brocklebank.

Under agenda item 1, we will take evidence on the Executive's revised relocation guidance as part of our on-going monitoring of relocation policy. We have with us this morning representatives from the Scottish Trades Union Congress and from civil service and public sector unions. They will stay on for the second agenda item, when they will give evidence on efficient government, including civil service reform. However, the first agenda item is on relocation only. Although there are overlaps between relocation and efficient government, we have structured the agenda in that way in order to focus the evidence sessions.

Members will recall that we have agreed to submit comments to the Executive on its revised guide. I hope that the evidence session will help us to formulate our comments. Following our evidence session with the Executive, Elaine Murray, Alasdair Morgan and I had an informal session with civil servants to hear a technical briefing. That will also inform the process.

I welcome to the committee Grahame Smith, deputy general secretary of the STUC; Matt Smith, STUC treasurer and Scottish secretary of Unison; Eddie Reilly, the Scottish secretary of the Public and Commercial Services Union; Alan Denney, Prospect national officer; and Jim Caldwell, Scottish secretary of the FDA.

As we have representatives of trade unions with us, I suppose that I should declare my union membership. I am a member of the GMB and the Educational Institute of Scotland. I do not know whether other members wish to declare their union membership.

I am a member of the Transport and General Workers Union and the Association of University Teachers.

I am a member of the EIS and the TGWU.

I am a member of the TGWU.

I invite Grahame Smith to make an opening statement, if he wishes. I would appreciate it if he can refrain from making any reference to Sunday's events—perhaps he can sort the matter out with Eddie Reilly, who is sitting next to him.

Grahame Smith (Scottish Trades Union Congress):

I never comment on those matters.

I notice that a couple of committee members are not members of unions, so we will ensure that they get forms in due course.

The evidence that was submitted on behalf of the STUC to the committee was specifically on efficient government. The STUC has played a co-ordinating role on that matter with our affiliated unions in the public services. I am happy to leave comments on "The Relocation Guide" to my colleagues whose members are most directly affected by relocation. The committee will be aware of the previous evidence that the STUC has submitted on relocation more generally and I see no need to cover that now. I leave Eddie Reilly to lead for us and for the unions on "The Relocation Guide".

Eddie Reilly (Public and Commercial Services Union):

PCS has submitted evidence on all the matters that are under consideration today. I will highlight a few points on top of that. As members know from previous evidence that we have submitted to the Finance Committee, we have campaigned with the STUC for some time now to have central machinery set up to co-ordinate relocation work. We certainly welcome the team that has been set up in the public bodies unit of the Scottish Executive's Finance and Central Services Department. As the revised guidance shows, the new team is not only co-ordinating and reviewing, but considering the application and implementation of relocation policy for the future.

Our union, along with the other civil service unions, will submit evidence on the revised guidance within the next fortnight. We are more than happy to send a copy of that evidence to the Finance Committee clerk for the committee's information.

I will make a few comments on the wider picture in which the relocation policy of Scottish ministers has to be looked at. Part of the melting pot is, of course, the continuing application of the relocation policy of United Kingdom ministers and their decision to target 100,000 jobs to be cut in the civil service. If we add that to the relocation policy of Scottish ministers and what is going on in efficient government, which we will come to later in the meeting, we see that there is a complex set of policies that we have to consider specifically in Scotland. We will want to keep the committee informed of our views on the matter.

Recently, the major decision on the relocation of the transport agency was made. A questionnaire has gone out to staff who will work in the civil service part of the new organisation to get some feel for the number of people who would be prepared to consider, or who would be interested in, transferring from Edinburgh to the new location in Glasgow, wherever it is. Once we get more detail on the specific wishes of individual members of staff, that situation may well yet prove to be problematic.

I draw to the committee's attention our concerns about the Accountant in Bankruptcy. There has not been a problem with that relocation from the point of view of industrial relations because, in comparison with other relocations, it is reasonably small. However, although the Accountant in Bankruptcy was first identified as a candidate for relocation two years ago, there has still been no ministerial decision on the location. Such delays make people anxious about relocation policy generally. Some members of staff do not want to transfer to Ayrshire and are presumably looking for other jobs so that they can get out of the agency, whereas other members of staff might be interested in moving if they knew that a final decision had been taken.

It certainly appears to us that the delay is being caused at ministerial level. That is resulting in considerable chaos for the staff concerned and it does not assist the unions—which, in principle, have always been in favour of relocation, as long as it does not result in compulsory redundancies or compulsory redeployment—in carrying our members with us. The delays behind decisions such as that on the Accountant in Bankruptcy seem to be inexplicable. That is all that I want to say by way of introduction to our written submission.

The Convener:

Following our initial inquiry, which sought to get greater transparency on relocation, the committee thinks that we have made significant progress. "The Relocation Guide" deals with some of the concerns that were identified by the trade unions and by the committee in our report, but we recognise that issues remain and that, with any relocation policy, there will always be some intractable problems. We will focus on those.

Dr Murray:

As the convener indicated, the committee feels that many of our concerns have been addressed. You mentioned that you welcome the Executive's new relocation unit. We, too, feel that it will help to ensure that the process is transparent. How much consultation with the trade unions was there while "The Relocation Guide" was being drafted? Were any comments that the trade unions made during that process reflected in the final draft of the document?

Eddie Reilly:

We had a meeting with civil servants from the unit late last year, which we found to be helpful and constructive. I echo the convener's points. The fact that the Finance Committee played an important role in bringing about a much healthier and more transparent position has certainly not been lost on the trade unions. At our meeting, the civil servants gave us great encouragement to engage positively in the process. We now have the revised guidance and I am confident that we will make detailed submissions on it. Overall, we are much happier than we were a year ago with the degree of engagement that we have with the relocation process. The Executive's unit is encouraging our participation.

Dr Murray:

You mentioned the uncertainty that staff experience as a result of the long delays in decision making on relocations. What happens during that period? Do the unions get involved in discussions with ministers? You mentioned the case of the Accountant in Bankruptcy. Although people know that that agency is going to Ayrshire, they do not know exactly where in Ayrshire it will be. How are staff and the unions being kept informed of the thinking on that?

Eddie Reilly:

Therein lies the great problem. It is not our normal practice to demand meetings with ministers on individual cases. When we next have a meeting with the Minister for Finance and Public Service Reform, we will log such matters with him. The issue will certainly be mentioned when we put our views on the guidance to the public bodies unit but, in essence, we cannot resolve such problems with senior civil servants through the usual industrial relations machinery.

We are talking about a problem at the political level. I do not know whether the minister cannot make up his mind or whether he or the chief executive does not want to go to a particular location. There is no transparency in that part of the process. Our members feel frustrated because they will be in limbo until a political decision is taken. We can refer to that in our evidence to the public bodies unit. We can also make clear our views at our next meeting with Tom McCabe and with other ministers. We are concerned about the situation regarding the Accountant in Bankruptcy, which I think is bringing the relocation policy—much of which is good—into a degree of discredit.

What would improve the situation from the staff's point of view? Would it be helpful for them to be given a timetable for decision making at the beginning of the process? That would give them an understanding of the consideration framework.

Eddie Reilly:

The experience with the Accountant in Bankruptcy is not typical. We have not had similar experiences with previous relocations, such as that of the Scottish Public Pensions Agency or those involved as part of the small units relocation policy. Discussions about the relocation of the transport agency are on-going; at least the city, if not the precise location, has been decided. Our experience with the Accountant in Bankruptcy is rather curious; it is not akin to our experience with other relocations. It seems to be the case that the minister just will not take the decision. That situation must be addressed as quickly as possible. In the meantime, all that we can do is report back to our members that we are doing our best, through the usual machinery, to get the decision made. There is not a problem as regards industrial relations; it is just a question of the decision being made on the agency's new location. Once that has been done, the proper arrangements can be made, whereby staff can opt to transfer or to move to other jobs, as happened in other cases of relocation.

The Convener:

I want to leave aside the mainstream civil service and to consider non-departmental public bodies and other public bodies. You referred to the consultation that takes place within the civil service negotiating machinery. Is there equivalent discussion about the position of NDPB staff and other staff?

Eddie Reilly:

Matt Smith might want to comment on Unison's view, but PCS feels that the amount of consultation and discussion that takes place with individual NDPBs is reasonable. However, one of the reasons why we were so keen for the new unit to be set up was that we felt that it was necessary to have an overview of relocation policy that extended across the NDPBs—in particular, those that are covered by the Scottish Executive's main sponsoring departments—and did not just relate to the mainstream civil service or to large local government bodies.

When we give evidence to the public bodies unit on its revised guidance, we will stress that that is the way in which we want the process to work in future. That will mean that if there is a decision about VisitScotland or—God forbid—another decision about Scottish Natural Heritage, we will be able to assess the application of relocation policy in the widest possible sense; such assessment will not take place only within the confines of the main civil service departments and agencies. If that does not happen, we could get a situation in which decisions about relocations—whether to Inverness or to elsewhere in Scotland—taken in different public sector organisations were inconsistent with the overall policy.

Matt Smith (Unison):

I thoroughly endorse what Eddie Reilly has said. We have been involved in discussions on the issue—I remember that at an early stage we had meetings with the then Minister for Finance and Public Services—but we have not been involved in the detail. I fully appreciate that the major concerns rest with Eddie Reilly and the civil service unions, but the process impacts on Unison's membership, too. Concern about NDPBs is one example of that, but similar situations could arise in the health service and other agencies. We are keen to continue to have involvement and we will liaise with our colleagues in other trade unions on the matter.

The Convener:

That issue perhaps spills over into our next agenda item. I will pursue the transferability of staff of NDPBs, which is a particularly contentious issue. At present, such staff do not have the rights of transfer that civil servants have. Do you believe that that lack of transferability could militate against the Executive's taking a properly strategic approach to relocation? Is that a concern?

Eddie Reilly:

I am really glad that I came, now.

The question is a vexed one, not least because of civil service status. The civil service commissioners' rules on open and fair competition for all posts in the civil service cannot, de facto, be guaranteed in relation to staff—who may be members of my union, Prospect or the FDA—who work in public bodies that do not have civil service status.

Annex B to PCS's written submission contains a report on the delegation that we sent to Dublin to examine the experience of the Irish unions, Irish ministers and Irish civil servants on relocation. At that time, ministers were seeking to change the law in the Republic of Ireland to ensure that there could be transferability around relocation clusters in major conurbations in Ireland, particularly on the west coast. Civil service trade unions do not oppose consideration of how transferability of staff can be achieved from public bodies into civil service departments and agencies, as long as we can solve the problem of civil service status and ensure that, when staff are transferred into the civil service, they meet the requirements of the civil service as part of that transfer.

I am aware that the UK civil service is undertaking a number of pilots in England to examine how it can deal with transferability from public bodies into the civil service. Mention has been made of the matter being examined in Scotland, too, most recently when one of the civil service commissioners spoke to civil servants in the Scottish Executive. To answer your question, although the unions are not averse to transferability, there are a number of fundamental issues that we want to be dealt with.

Some of those issues arose during the transfer of staff from Scottish Homes to Communities Scotland. Does Alan Denney want to comment?

Alan Denney (Prospect):

At the time of the SNH debacle, there was a presumption by some ministers that we could readily transfer more than 200 staff from SNH into the Scottish Executive. They missed not only the point that Eddie Reilly made about non-transferability, but the fact that there were not 250 vacancies in the Scottish Executive to accommodate those staff. They also took no account of the skills mix; the staff from SNH were specialists and were not the type of staff who could readily be accommodated in the Scottish Executive. That point was overlooked and I am fearful that it will be overlooked elsewhere. It is assumed that there is an immediate transferability of specialist skills, but that is not always the case.

On the specifics of what is on the table at the moment, I am interested to know the unions' views on the relocations that have been brought about by the small units initiative.

Eddie Reilly:

Since the policy began, the only relocation that has caused any problems from an industrial relations point of view was that of SNH. That is not to say that we might not be in the midst of problems with the transport agency, because of the size of the relocation. However, many of the other relocations involve small units and it is a lot easier to deal with matters that arise regarding individuals who want to stay or want to go. In the case of the central inquiry unit, delays and changes of views by ministers—and, it appears, senior civil servants—created a problem; I am not sure whether that issue has been resolved yet. Overall, however, we have not encountered any industrial relations difficulties.

Jim Mather:

Building on that, and given that PCS has taken the time and trouble to go and look in some detail at the Irish model, do you think that there might be an opportunity to blend the two approaches in an holistic way and to trigger something that might lead to larger numbers of staff moving from centralised departments of the Executive?

Eddie Reilly:

I do not think that we would have any objection to a more imaginative approach along those lines. Of course, the Irish position is based on volunteers only. If Scottish ministers were to adopt such an approach, that would create an entirely different agenda, with which we could positively engage.

We have to make sure that we do not make a group of workers redundant in Edinburgh in order to create X number of jobs in another part of the country. That is why we have always taken the view that, even within the confines of the policies that have been set out by Scottish ministers, there is a way to manage relocation over time that will avoid compulsory redundancies and compulsory redeployment and will encourage staff to buy into the exercise in a positive way. Despite some of the obvious difficulties that we have had, that is the approach to relocation policy that the civil service trade unions have tried to take.

Jim Mather:

I want to drill down further on that point, because it is particularly useful. If we take the small units initiative, add the experience of Ireland and the point about volunteers, and perhaps a wish list from the witnesses on what might be needed to create a better fit in Scotland, do you think that it would be possible to produce something that is more likely to persuade sufficient numbers of volunteers to relocate? That would not only be worth while from the standpoint of efficient government, but it would reactivate parts of the Scottish economy in the regions of Scotland.

Eddie Reilly:

I have no problem at all with that approach. That is why, as I said earlier, I welcome the fact that the public bodies unit is not just monitoring the situation but engaging in a review. We want the review to be much wider and we want to get into discussions—in which the STUC will have a particular role—on the social and economic criteria. Some MSPs and ministers tell us that the policy as currently applied keeps suggesting Livingston. Why does it not suggest Coatbridge, Airdrie or wherever? There is a wider agenda: although the relocation policy has existed for six years, it has not been fundamentally re-examined to see whether it is still fit for purpose in terms of what people want from it. There is now an opportunity through the public bodies unit's reviewing role for the Finance Committee and others to consider the issue more fundamentally than just asking whether what is going on now is working or whether it is giving us problems. I hope that that kind of debate on relocation policy will continue.

The Convener:

We have probably exhausted our specific questions on relocation. It would help us to have the responses that were mentioned from PCS and the other civil service unions to "The Relocation Guide". Our intention is to discuss any points that arise from the revised guide at next week's meeting and to draw up a draft response to the Executive on 22 March. I hope that our timetable will fit in with yours. If you can give us the information, we will consider it in that context.