Unite Fujitsu News

Time for Your Reps to Help You

The UNITE newsletter on 4th August (You can find it here internally and here externally) reported on the company initiatives to curtail your reps’ ability to have the time to work on your behalf, which has included putting pressure on individual reps in Manchester who are busy dealing with the issues the company creates (such as pensions, above).

UNITE had submitted a collective grievance in Manchester (there is no facility to do this nationally), highlighting the way the company’s actions break the agreements that are in place, and how the company’s failure to carry out agreed actions that could have reduced the workload on reps.

Following the stage 1 grievance hearing, it was agreed to suspend the grievance while previously agreed actions are carried out, which include fixing the SST system which currently penalises reps and their managers, and negotiating a proper facilities agreement. It is not yet clear whether the company is finally prepared to deal with these issues sensibly.

As the previous newsletter explained, part of our response to the threat to reps time in Manchester must be to strengthen organisation and representation across the country, to reduce our dependence on them. The “Reps Update” article below summarises progress so far.

Some progress being made between UNITE and the company at national level, where it is intended to incorporate the recent confirmation that the company will consider (on a case-by-case basis) paid release for UNITE reps in un-recognised areas to undertake union training into our existing National Protocol Agreement (Can be found here internally and here externally), which covers facilities for reps and members in areas without union recognition.

Pay Review

A very large proportion of employees not covered by collective bargaining received no pay rise at all, even if they Achieved their objectives or were paid less than the norm for their role. Few of those who did receive a pay rise would have matched the rate of inflation, currently running at 4.8% (RPI in the year to July 2010). After last year’s pay freeze, many felt a sense of relief once the money was actually in the bank earlier this week.

You may remember that one of the few areas of progress on pay in the national agreement UNITE reached at ACAS in February was in relation to minimum rates of pay for Fujitsu staff. Everyone who was being paid less than £12,000 a year got a rise to bring them up to that level from 1st March. The company recognised UNITE’s aspiration to increase that to £13,500, but was unwilling to make a firm commitment at that time.

The company has now confirmed to UNITE that the vast majority of those who were being paid less than £13,500 (full-time equivalent) have been brought up to that level, and reps know of individuals who received substantial rises as a result. There remain 25 employees paid less – if you are one of them, please get in touch as we expect this to be discussed at the next national meeting with Fujitsu at ACAS.

Fujitsu Reps Update

The 4th August newsletter (You can find it here internally and here externally) appealed for volunteers to come forward for new reps and contacts. Several members have already come forward, the list of reps and contacts on CafeVIK is already showing some of the additions, and the list on OurUnion will be updated shortly.

The union’s reps and contacts are the backbone of the organisation, keeping staff informed, providing assistance and campaigning. Whatever you’re willing to contribute, please think seriously about volunteering. New reps/contacts would be particularly welcome from under-represented areas such as Scotland, the Republic of Ireland, Solihull, Bracknell and Slough, but your efforts can make a difference even if you’re in Manchester!

Being a UNITE rep or contact can be very rewarding, making a positive difference to members’ lives and to the company. It’s more satisfying to do something to change things for the better than just to moan about it.

As well as increasing the number and coverage of our reps and contacts, UNITE is working to provide them with relevant training as well. This has made real progress in recent months.

Dozens of reps and contacts from across Fujitsu in the UK have taken part in UNITE training/planning sessions alongside colleagues from other major Computer Services companies. More are taking part over the next couple of months.

UNITE is encouraging more reps to undertake the Workplace Reps Introductory Certificate which is central to the union’s extensive education programme, much of which is delivered all round the UK and Ireland.

The recent progress in securing paid release for reps in parts of Fujitsu not yet covered by union recognition should make the training accessible for more reps and contacts, rather than them having to give up weekends and holidays.

Pensions

An important gain from our “Jobs, Pay and Pensions” campaign earlier in the year was agreement that:

l) the company confirms that the terms of its Defined Contribution pension schemes are a contractual entitlement for those existing and new employees who are members of such schemes;

This would provide better protection of pension rights, not just for those currently in the final salary ICL DB Pension Plan, but also newer employees in the Fujitsu UK (FJUK) Defined Contribution plan, making it harder for the company to cut pension provision in the future.

Since then, UNITE has been working hard to try to ensure the company implements the agreement properly through appropriate legal wording in the “variation of contract” letters that the company will be sending out soon.

The process has been slower than necessary because the company refused to meet the Pensions Forum, so most communication has been through protracted exchanges of email.

There has been significant progress, particularly on the wording on the main (FJUK) pension provision and the 10% of salary “recompense”. However, the wording in some other areas currently remains unsatisfactory, for example on Life Assurance and the Permanent Health Insurance (PHI) scheme to support you if you’re off long term sick.

UNITE continues to try to get the company to resolve these issues. However, we currently have no assurance that the company won’t issue unsatisfactory letters to ICL DB members within the next week. Please be clear – there is no need to panic or take hasty ill-considered decisions. Though individuals can accept the change earlier, nobody has to do so until well into 2011.

The other major area of concern has arisen from the government’s announcement that it intends to change the basis on which pensions are index-linked from the Retail Price Index (RPI) to the Consumer Price Index (CPI). Figures are available from 1988, during which time the difference between RPI and CPI inflation averaged about 0.7%. Over a number of years when your pension is deferred after leaving a scheme or after retirement, this compound loss could accumulate to a very significant reduction in “defined benefit” pension.

The government plans to make the change effective from April 2011 but at this stage the details are not known. The impact is likely to be different on different pension schemes, so trustees are likely to be seeking legal advice on the interpretation of their trust deed and other documents.

At this stage, it is not known if or how the ICL DB Pension Plan might be affected.

If the change in indexation affected both deferred pensions (after you’ve left the scheme) and pensions in payment, then for example:

• someone who is 50 now could expect a reduction to 91% of their expected DB pension by the age of 65, to 82% by the age of 80, and 76% by the age of 90.

• Someone who is 35 now could expect a reduction to 82% of their expected DB pension by the age of 65, 74% by the age of 80, and 69% by the age of 90.
  

This graph makes the point:

The government, not Fujitsu, is responsible for its proposed policy, but if the change from RPI to CPI affects ICL DB pensions in deferment, this could make the impact of Fujitsu closing the scheme significantly worse for employees (while saving the company money).

The Pensions Forum (UNITE and IPMC) has been pressing the company to clarify the position, and issued a statement to members on 18th August which covered both the legal issues and the RPI-CPI issue.

What You Can Do

Given Fujitsu’s refusal to engage with the Pensions Forum at a collective level, the forum encouraged members to write to the company Pensions Department individually. A number of members have contacted UNITE asking for help in drafting such a letter, so there here is a template you can adapt and send:

To: group.pensions I have received the “It’s Time To Focus On The Detail” booklet from the company, which aims to provide “what you need to know to help you make your important pensions decisions”, and invites our questions. I have a number of questions which aren’t answered by the booklet and need answers I can rely on when deciding whether to accept the company’s proposed change to my contract of employment. National Insurance How much would my monthly National Insurance contributions increase by when I leave the ICL DB pension plan? What percentage reduction in my take home pay would this be? Indexation The government has announced its intention to change the way Defined Benefit pensions are index-linked from April 2011, so that they would be linked to the Consumer Price Index (CPI) rather than the Retail Price Index (RPI). I am concerned that this could substantially reduce the value of my pension. I understand that it is not yet clear whether or how much this might affect me, and that this is likely to depend on further detail from the government and on decisions of the ICL DB trustees. When does the company expect to be able to tell me what the trustees decide about whether and how the change affects the ICL DB plan? If the change affected my pension in deferment (between my Expected Exit Date (EED) and the age of 65), when and how can I work out how much this is likely to reduce my ICL DB pension? If the change affected my pension in retirement, when and how can I work out how much this is likely to reduce my ICL DB pension between the ages of 65 and 75 and between the ages of 65 and 85? Many previous pension documents have been provided to me by the company which clearly state that my pension will be index linked to RPI (within limits), and I have contributed to the ICL DB plan on that basis. If the trustees do decide to change indexation and reduce my pension, how will the company compensate me? Illustration and Advice Last year the company provided an illustration that compared expected pension in the ICL DB plan if it remained open until I retired with expected pension under the company’s original proposal. Will the company provide me with a new illustration reflecting the company’s decision and based on reasonable assumptions discussed with the Pensions Forum? The company is suggesting we use Independent Financial Advisors. Given that this has been suggested to several thousand staff, will the company organise and fund this centrally, which must be more efficient in time and money? Permanent Health Insurance (PHI) I understand that the mechanism for providing this benefit may change from time to time, but can you confirm that the benefit to me will not be removed or reduced without my consent? Can you confirm that the company will provide an equivalent benefit if PHI does not pay out and I would have qualified for ill-health early retirement under the rules of the ICL DB pension plan? Can you confirm that in the future the company would not dismiss me for a reason arising from my ill-health before I have been off for the qualifying period for PHI? Life Assurance I understand that the mechanism for providing this benefit may change from time to time, but can you confirm that the benefit to me will not be removed or reduced without my consent? Salary Swap Can you confirm that I would have the option to make contributions from my salary rather than through the Salary Swap scheme if participation in the scheme would reduce my entitlement to contributory state benefits, for example because my income fell below the Lower Earnings Threshold for National Insurance? Most of my questions require answers which are not specific to me, so as well as providing me with individual answers I would like the company to engage with the Pensions Forum to agree clearly worded answers to the general questions which then form part of my contract of employment.

You should keep the company’s response in a safe place.

At the same time as pressing Fujitsu for answers, please contact your MP to lobby against this change to pensions which could affect people so severely.

You can find your MP here: http://www.parliament.uk/mps-lords-and-offices/mps/

It’s usually best to write to them on paper, they take that more seriously than email. You can write to any MP at “House of Commons, London, SW1A 0AA”. Here’s a model letter you can adapt to send to your MP:

I am writing in relation to the government’s announcement that it intends to change the basis of indexation of defined benefit pensions from RPI to CPI, and to ask you to oppose this change. I work for Fujitsu, which proposes to dismiss me and re-employ me on a new contract next year so that I can no longer contribute to my final salary pension. This would make me a “deferred” pensioner, with my pension index linked from next year up until retirement, as well as when I am drawing it. At this stage I don’t know whether or how my pension fund will be affected by the change, as we are awaiting further clarity from the government and a decision from our pension fund trustees. If our fund is affected, the impact on me and my family could be severe. If CPI inflation continues to be about 0.7% less than RPI inflation each year, as it has since 1988, my pension would be rapidly eroded in comparison to what it would have been without the change, dropping roughly as follows with the years of indexation: 10 years indexation: 93% 20 years indexation: 87% 30 years indexation: 81% 40 years indexation: 76% 50 years indexation: 71% Two main justifications have been advanced in favour of the change: Inflation for pensioners is closer to CPI than RPI, because many pensioners do not pay housing costs. Even if this was correct, how could it justify eroding my deferred pension while I’m still working? It would reduce the liabilities of defined benefit pension funds, helping keep them open. On the contrary, changing the indexation of deferred pensions would have the opposite effect, increasing the incentive to close schemes. Employers were already attracted to closure because accrued pension was devalued by being linked to RPI instead of (typically higher) future salary growth. The difference between CPI and future salary growth is generally even greater, increasing the incentive to close schemes. The proposed change is particularly pernicious for people like myself, who work for companies which have already decided to close their final salary pension schemes. After considerable pressure and lengthy negotiations, my employer did agree to provide some recompense for the closure of our scheme, which they said was limited by what they could afford. Now the government is stepping in and proposing to hand over yet more of my pension money to my employer! What are your views on the proposed change, and particularly on it affecting deferred pensions as well as pensions in payment?

Best of all is to visit your MP at a surgery and speak to them face to face.

You could also join the protest against all the cuts at the Tory party conference on 3rd October in Birmingham. The protest, organised by the Right To Work campaign, is supported by several national unions, as well as our Fujitsu UK Combine Committee. Transport is being organised from all over the country. Get in touch if you want to join the Fujitsu contingent.

Manchester Pay Review August 2010

Today is the first pay-day since the implementation of the 2010 pay review, and you should by now have received a letter from your manager informing you about your pay rise.

The good news is that everyone inside the bargaining unit should have received a pay rise, in contrast to the large numbers outside who received nothing at all. In addition, more money was available to managers to spend on people in the bargaining unit.

With the implementation of the pay review, more of the new manchester pay & benefits agreement became enforceable parts of your contract, extending your rights for the future.

Almost inevitably, there have been a few hiccups with implementation, so UNITE would recommend that everyone checks that their rise is at least the minimum set out in the agreement. Hopefully your manager has also given you extra from the funds set aside for management discretion.

UNITE has published a spreadsheet on CafeVIK to help you work out the minimum your manager was supposed to give you. This takes into account the lower comparator for your job, your previous salary, the PAC from your most recent appraisal, the cost of living element etc, but not the element at your manager’s discretion.

If you believe that you’ve had a smaller rise than you should under the agreement, please raise this with your manager in the first instance.

If you are unable to resolve the issue promptly with your manager, please contact UNITE with the full details.

UNITE and the Company are setting up a Joint Implementation Group to ensure that the agreement is fully and correctly implemented, so the union will be able to feed any issues into the Company. Your reps have already raised a number of apparent implementation errors with the Company.

If you are a UNITE member, your reps will also be able to assist you individually in taking any issues up with your management.

The pay review process highlighted two other issues affecting some individuals:

• Individuals who appear to be on the wrong role code
  
• Individuals for whom the Performance Plus process (objectives, appraisals etc) does not seem to have worked properly

Both the Company’s standard pay system and the Manchester agreement are based on “comparator” pay levels for your role. If you believe you are on the wrong role code, it is important that you make sure this is resolved, to avoid it impacting on your pay review year after year.

If you are in the right role code for your current job and at the top of your pay band, you and your manager should be discussing your options for promotion to a role with more opportunity for pay progression. The “Career Mapping Tool” on the People Development Portal is useful, but be aware that it can suggest you move to roles which typically attract a lower salary. UNITE members can avoid this pitfall, as they have access to the pay comparators for most roles.

UNITE continues to work with the Company to improve the Performance Plus system. Collective agreements provide a more fertile environment within which you can individually grow your career, but they are not a substitute for your own efforts. You need to:

• ensure you have clear objectives which are not only achievable, but that it is possible to exceed

• keep an eye on your objectives during the year, complete them all and exceed where you can

• ensure your objectives are updated if circumstances change, to prevent you being marked down for something outside your control

• be well prepared for your appraisal and ensure it is conducted in line with section 8 of the manchester pay & benefits agreement

• have a meaningful Personal Development Plan (PDP) so that you have access to the training and development you need

• raise the issue promptly if you are not getting the support and action you need from your management

• raise it immediately if your appraisal is not fair, don’t wait until it impacts on your pay review

• take advantage of sections 10 and 11 of the agreement when you are promoted or change roles
  

Collective bargaining has already delivered a better deal on pay and benefits for employees in the Manchester Bargaining Unit, but the ability of UNITE to make further progress depends on the involvement of you and your colleagues. If you aren’t yet a member, we hope you will decide to join.

National Newsleter

Please see a local copy of our national "one per desk" newsletter here. A version internal to Fujitsu is available here.

Fujitsu Voice Nominations

Fujitsu has opened nominations for employee reps on “Fujitsu Voice”, its new structure for informing and consulting UK employees, replacing the old UK Consultative Forum (UKCF).

UNITE had asked members interested in standing to come forward and as a result has identified a set of candidates the union is supporting. These are included in the UNITE Briefing Pack on Fujitsu Voice:

www.ourunion.org.uk/fv

As you can see, more candidates are required from:

• Service Delivery Management & General Management
  
• Finance & Human Resources
  
• Commercial, Legal, Procurement, Quality and Business Assurance
  
• Business Services
  
• Business Consultancy
  
• Sales, Account Management & Marketing

Discussions are ongoing with PCS who are seeking support for two more of their members and UNITE will issue an update in due course.

If you would be willing to stand, please get in touch straight away. Union-backed candidates are helping each other with election addresses so that they have the maximum chances of success, so please don’t submit a nomination without discussing it first.

Time for Your Reps to Help You

UNITE’s reps and contacts are the bedrock of union organisation and support for members.

One of the benefits of union recognition is that there are legal rights to paid release from work for reps to get training and to carry out their duties, enabling better support for members and more professional dealings with the company. Where we don’t have union recognition, we are entirely reliant on what the company can be persuaded to allow and what reps and contacts are willing to do in their own time. This inevitably means that the reps in areas with recognition (e.g. Manchester) tend to carry a disproportionate workload when national issues arise.

Earlier this year, the company proposed a new policy which included time off for union duties and activities. UNITE sent this out for comment to members, and responded strongly to the company that the proposed policy conflicted with our existing agreements and represented a significant attack on union organisation. The issue has been discussed with the company through the national talks at ACAS, and the policy is currently on hold pending further discussions, which is good news.

However, the company has in the meantime been targeting individual reps in Manchester to put pressure on them to reduce the time they spend helping employees and dealing with the issues the company creates. Your elected national Combine Committee has discussed this and sees this as a national issue, as many of the issues dealt with by reps in Manchester also affect employees elsewhere. At a time when the company is generating many complex and important issues, and wanting them dealt with promptly, a reduction in reps’ time means a worse deal for employees.

UNITE has submitted a collective grievance in Manchester (there is no facility to do this nationally), highlighting the way the company’s actions on time-off break the agreements that are in place, and how the company has failed to carry out agreed actions that could have reduced the workload on reps. The stage 1 hearing for this grievance took place today and UNITE will issue an update in due course.

Your Combine Committee also decided that part of our response must be to strengthen our organisation across the country, so reduce our dependence on Manchester. Key to this is increasing our number of reps and contacts, and getting more of them trained. The company has recently confirmed that it will consider (on a case-by-case basis) paid release for UNITE reps in un-recognised areas to undertake union training, and we need to make the most of this new opportunity.

If you might be willing to become a UNITE rep or contact, please get in touch.

Combine Committee members will be contacting reps and contacts directly to discuss training.

Engineering Services Job Cuts

On Friday, Andy Mears, the Director of Engineering Services, wrote to his staff outlining further cost-cutting, including a reduction in Engineering Services headcount, which he hopes to achieve without redundancies.

The company has committed to engage with both UNITE and the PCS union, as well as holding “Engineers’ Forums”. If elections are held to these forums please consider standing and keep your union reps informed.

UNITE has considerable experience of protecting members through staffing changes, not only through the recent “Project Cherry” redundancies, but also month-in, month-out in smaller scale job cuts where redundancies are often entirely avoided. The “Annex 1” agreement which covers staff in the Manchester Bargaining Unit has often provided a model of good practice, much of which can be applied elsewhere.