Wholly Owned Subsidiary (WOS) Board Meeting Presentation 1 st March - PowerPoint PPT Presentation

CHFT Estates and Facilities Wholly Owned Subsidiary (WOS) Board Meeting Presentation 1 st March 2018

Trade Union Representations

Case for Change • The case for change assessed five options: – Do nothing/do minimum – Each organisation creates an Estates and Facilities Wholly Owned Subsidiary – One West Yorkshire Association of Acute Trusts (WYAAT) Trust is the lead provider for Estates and Facilities for all Trusts in WYAAT – WYAAT Estates and Facilities create a Wholly Owned Subsidiary – Estates and facilities are outsourced to a private sector company

Case for Change • Following a thorough appraisal against financial and non-financial benefits the preferred option is: – Option 2 - Development of a CHFT Wholly Owned Subsidiary

Business Case Development • CHFT Board gave approval in principle for the development of the CHFT WOS at the Board Meeting in December 2017 subject to further information being provided to the January Board • Further information was provided to the January Board, and approval was given to continue working on the development of the WOS

CHFT Estates, Facilities and Procurement WOS • Company Limited by Shares – all shares owned by CHFT • Staff transfer under TUPE • Property transfers under Lease • Contract for provision of services between the WOS and CHFT • SLA for the provision of services to the WOS from CHFT • There will be a cash flow and capital agreement between the WOS and CHFT

Consultation Overview • Commenced in February 2017 at Staff Management Partnership Forum (SMPF) • Subsequent updates to SMPF regularly throughout 2017 on the Case for Change • Monthly meetings between LH and Trade Unions • Staff engagement and information sessions held on a regular and ongoing basis across all services • Meeting between the Board and Trade Unions with staff on 14/2/18 • SMPF discussion on the proposal – 20/2/18 • TU representation to the Board – 1/3/18 • CHFT and Unions continue to meet

Key Principles • If the organisation makes a profit, all of it (after tax) will be given to CHFT for patient care • Unions will be recognised by the new organisation • CHFT will own 100% of the shares • The WOS will apply to the Department of Health to use the NHS logo and any other material which emphasises the WOS as wholly owned by the NHS • In consultation with TU’s, there will be a plan to move to the living wage for new starters and those staff who are currently on a Band 1 grade (should they wish to move)

Key Principles • Terms and conditions of employment including continuity of service will be protected in accordance with TUPE legislation • The New Fair Deal on Pensions means the WOS will be able to secure a Closed Directions Order ensuring continued access to the NHS Pension Scheme for transferred staff • Long service awards, canteen discount, car parking and other staff benefits or enjoyed facilities will transfer over • Consideration of further questions on protections for staff by the Board on a monthly basis

Key Principles • The ongoing WOS Governance will have CHFT Board of Director representation as well as Staff Side • There will be a move towards productivity and staff incentives • The new organisation will become more commercial, and will have targets to achieve to increase turnover/ bring on board new contracts • There will only be improvements in quality (no reduction in quality of goods or services) • There will be a plan to set up an apprenticeship academy using a small proportion of the savings

Key Principles • Will include CHFT Board support to:- – a movement towards the Living Wage – commit to the protection of Agenda for Change terms and conditions for those staff who transfer into the WOS for the duration of the contract between the WOS and the Trust? – a minimum contract duration of 15 years – a guarantee that the totality of services won’t be sold on outside of NHS ownership – ensure staff who TUPE into the WOS and subsequently get promoted will stay on the same Agenda for Change terms and conditions – ensure that these principles will remain in place regardless of any decision of the Secretary of State regarding reconfiguration and any potential future methods of financing

Next Steps: • Subject to Board approval:- – Agree to the establishment of a Wholly Owned Subsidiary Company for CHFT – Nomination of the Executive Director of Workforce & OD and a designated Non Executive Director to be a part of any future governance – Determine the Executive Director of Estates & Facilities Management to be nominated as the interim lead director for the WOS – Establishment of an Estates, Facilities and Procurement Joint Consultative Committee to facilitate local, meaningful consultation on the WOS following the Board Meeting – Work towards a target date for the WOS to be fully operational as of 31st August 2018 – Commence formal TUPE consultation