Our Ref: GS/kh/ NGrid
26 January 2009
To: GMB Members – Newcastle
National Grid
Dear Colleagues
Members will be aware that the joint trade union met at the site
on 23rd January 2009.
The Senior Representative from Unite rang in to a conference
call to offer support on behalf of his members. This
support was very welcome. Stephen Byers, MP, also attended
the meeting I think it was very useful for us to talk to the Shop
stewards and a few members of the workforce to get their views on
the current position with the Newcastle site.
Meeting with the Company
The joint unions and Stephen Byers, MP, also used the
opportunity to meet with representatives of the Management
Team. Mr Mark Pickles led on behalf of the company at the
meeting. Mr Pickles stressed that no decision had been taken
over the future of the Newcastle site. However, he did make
it clear that the inhouse provision run from the Newcastle Office
does not meet Ofgem performance benchmarks. Mr Pickles also
suggested that the functions carried out in Newcastle could be
delivered more competitively and effectively by a third party
provider. Whilst Mr Pickles assured us that no decision had
been taken, it was impossible not to conclude that National Grid's
preferred option was likely to be for the outsourcing and possible
off-shoring of the work carried out at Newcastle. It also
seems fair to assert that the National Grid's plans are quiet well
advanced given that they have talked to five different companies
about undertaking the functions carried out in Newcastle.
We were advised that National Grid will, in the next few weeks,
formalise their position within Invitations For Proposals
(IFP). Presumably this will involve the outside providers
putting forward detailed plans about how they could deliver the
work.
Again Mr Pickles stressed that a final decision had still not
been taken.
- 2 -
An Alternative View
It seems clear that a lot of the work being undertaken by
consultants over the past period has actually been looking at the
performance of employees in Newcastle. However we have
forcibly made the point that there has never been any proper
dialogue with the trade unions about the benchmarks set by
Ofgem. Moreover neither has there been any serious
discussions about how we could further improve the services at
Newcastle. Indeed, what is not clear is how there could
be a proper system of benchmarking, given all the problems
that there have been with system faults at Newcastle. It has
become apparent to us nationally that the company has been paying
out huge amounts of overtime, above the agreed rates, in order to
get work done. This fact is bound to have a big impact
on costs and ultimately performance. We all know that the
problems with the system are down to decisions taken by senior
management, including the one not to properly complete the
testing. In these circumstances the process which has been
undertaken by National Grid in looking at the performance of
Newcastle is deeply flawed.
National Grid – Not Being Straight!
GMB representatives and officials who attended the meeting on
the 23rd January, could not help but draw the conclusion
that National Grid wish to close the Newcastle site. In
moving towards this position it is clear that the Company has not
acted in a transparent way or been straight with
employees.
Confidence in the integrity of Senior Management at National
Grid has been seriously damaged by the way that they have conducted
themselves over the issue of the Newcastle Office.
Trade Union Position
The Trade Unions have tabled an alternative view to National
Grid. We have argued that there should be meaningful dialogue
about the benchmarks set by Ofgem and the types of service provided
by third party providers. We want National Grid to enter into
negotiations to turn the Newcastle facility into a centre of
excellence.
In order to facilitate meaningful negotiations over a way
forward which would protect direct labour and raise standards of
service we have formally requested that the Company withdraws from
any threat to move to Invitations For Proposals (IFPs).
Very importantly this position was supported by Stephen Byers,
MP.
Such a move would go a long way to restoring confidence in
National Grid.
- 3 -
Future Meetings
Stephen Byers, MP, and Nick Brown MP will be meeting with the
Chief Executive Steve Holliday on the 4th February
2009. Mike Jeram, National Officer, Unison and I have been
asked to meet senior management of the Company on 3rd
February.
The Company will be left under no illusions that the Unions are
committed to fighting any closure of the Newcastle site.
National Grid by its very name claims to be National Company and
therefore it is right that it should have a footprint across the
country and not just in the Midlands and London.
The Staff at Newcastle have given loyal and long service to
National Grid and they deserve to be treated with a degree of
respect and dignity that has been sadly missing from the process so
far. We will call on the Company to enter into meaningful
negotiations on turning Newcastle into a centre of excellence that
will protect jobs and standards of service.
I hope that it will be possible for me to attend a meeting with
members at the National Office as soon as possible after the
3rd February 2009.
Yours sincerely
GARY SMITH
NATIONAL SECRETARY
Commercial Services Section