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The proposed HVCA alternative agreement: the JIB view

Nov 15, 2011

Further to the proposals originally made by 8 (now 7) of the major contractors to withdraw from the JIBs and employ their operatives under a new set of terms and conditions, administered by the HVCA, you will already be aware that this proposal is being made without the support or backing of the JIBs or particularly with Unite the Union.

We have also been made aware of FAQs issued by some of the major contractors and this communiqué seeks to address some of those concerns.

It is evident that there are a number of key benefits to employees and employers that would be lost if the alternative HVCA building engineering services proposal was to be adopted.

1. “The level playing field” vs “a race to the bottom”

The JIBs provide the benchmarks for rates of pay, terms and conditions of service within the industry which are recognised by clients, contractors and employees. These benchmarks are widely used in tendering for projects of all sizes.

In the absence of the JIBs negotiation machinery, the ability to regulate pay in a fair and reasonable manner for the building engineering services industry will be severely undermined to the disadvantage of employers and employees alike.

2. ECS Cards

The JIBs have a long history of independent certification of the skills of electricians, plumbers and mechanical craftspersons.

In the electrotechnical sector this has been administered through the Electrotechnical Certification Scheme (ECS) under the auspices of the independent JIB for the Electrical Contracting Industry for England Wales and Northern Ireland, and the Scottish JIB.

Under the proposed HVCA arrangements, the HVCA intend to administer skill cards for electricians. If successful, this would completely undermine the much more robust ECS arrangements which, unlike the HVCA, independently certify the skills of tradesmen. Under the HVCA arrangements, the employer alone will determine the trade competence of electricians and other ECS operatives.

The JIB will strongly oppose any attempts to undermine the independence of skill certification for electricians.

3. Grading

Under the JIB Agreements all grading and regrading is done by the independent JIB.  Should an operative not agree with the grading then they can appeal to a regional panel which comprises of an employer and a Union Officer.

Under the proposed HVCA alternative agreement the employer decides the grade using its own inhouse procedures.  The employer will also confirm the operative’s suitability for holding the grade (section 2.20).

The JIBs view this as a backward step and out of line with the thinking of successive Governments on skill certification.

4. Apprentices – NVQ Level 3 v NVQ Level 2

Under the Electrical JIBs apprentices are trained to NVQ Level 3 which is the skilled craft status.

Under the proposed HVCA alternative agreement apprentices are trained for 2 years to NVQ Level 2 and then apprentices may continue to NVQ Level 3 subject to their employer’s business needs (section 3.11)

Those who are not required to be trained further would fit the criteria for being graded as a Building Engineering Services Installer (sections 3.11 and 3.9)

5. Travelling Time and Travel Allowance

Under the Electrical JIB Agreement operatives are predominantly employed from the Shop.  Their Travelling Time (and, where applicable, Travel Allowance) payment is based on a straight line distance from the Shop to the Job.

Under the proposed HVCA alternative agreement, if a job/site/project is more than 25 miles from the Shop, the employer can substitute that job/site/project as the Shop for the duration of that project.  This means that Travelling Time and Travel Allowance would not be paid (section 4.3).

Whilst the proposed HVCA alternative agreement refers to this as local engagement, it is not the same as Locally Engaged Labour under the JIB Agreement (JIB NWR 11.5).  The proposed HVCA alternative agreement specifically defines locally engaged labour under section 4.5 which broadly follows the Electrical JIB Agreement.

Lodging Allowance may also not apply in these circumstances, nor is the requirement to lodge which is a significant disadvantage to employers and employees.

6. Weekend Working

Under the Electrical JIB Agreement, Saturday working is paid on the basis that all hours in excess of the first 6 or worked after 3pm, whichever comes first, are paid at double time.

Under the proposed HVCA alternative agreement overtime on a Saturday is paid at time and a half (section 6.14 (a))

7. BUPA

The Electrical JIB has unrivalled BUPA medical healthcare which includes pre-existing conditions.

Whilst under the HVCA proposed alternative agreement it states that there will be a review with the view of harmonising these provisions, there is no clarification as to how this will be done (section 12.2).

8. Pension Scheme

BlueSky (formerly the JIB Pension Scheme) has an administrative charge to individuals of 0.36%.

The HVCA’s Welplan Pension Scheme is much more expensive to individuals (0.85%) but is, nevertheless, the scheme which will apply to new employees not covered by existing pension schemes.

There is no provision under BlueSky for employers to remain in the pension scheme if they are not a member of the JIB or the ECA.

BlueSky has been nominated for 3 pensions awards in 2011.

9. Disputes Resolution

The Electrical JIB has a very widely respected free disputes resolution mechanism which operatives can access from their first day of employment.  Its success rate in settling cases has, for the last 2 recessionary years, been 95% and 92%.  This saves the individual, employers and the industry the stress and cost of going to an Employment Tribunal.  According to BIS, this is around £9000.

Under the proposed HVCA alternative agreement there is no procedure for individuals to raise a grievance outside of their company procedure.

Recent changes to employment legislation will require employees to pay deposits of £250 to make an Employment Tribunal claim and then £1000 when a hearing date is set. These would not apply to the Electrical JIB dispute resolution process which will remain free to claimants.

Should you require further clarification about the proposals and how it may affect you then please call our team on 020 8269 8546 between 9.00 am and 5.00 pm Monday to Friday or send an email to ir@jib.org.uk.

If you wish to contact Unite the Union please contact your regional office listed below:

Bristol Jerry Pickford 01275 370000 jerry.pickford@unitetheunion.org
Cardiff Graham Smith 029 2039 4521 graham.smith@unitetheunion.org
Crawley Malcolm Bonnett 01293 613795 malcolm.bonnett@unitetheunion.org
Cumbria John Fallows 08456 045531 john.fallows@unitetheunion.org
Derby Steve Syson 01332 548400 steve.syson@unitetheunion.org
Liverpool Steve Benson 07770 575404 steve.benson@unitetheunion.org
London Harry Cowap 020 8596 9966 harry.cowap@unitetheunion.org
London Guy Langston 020 8596 9966 guy.langston@unitetheunion.org
London Vince Passfield 020 8596 9966 vince.passfield@unitetheunion.org
London Neil Willoughby 020 3004 3440 neil.willoughby@unitetheunion.org
Midlands Michael Tuff 0121 553 6051 michael.tuff@unitetheunion.org
Newcastle Bill Green 08456 046390 bill.green@unitetheunion.org
Northern Ireland Jackie Pollock 08456 041402 jackie.pollock@unitetheunion.org
Scotland Rab Sherry 08456 045526 rab.sherry@unitetheunion.org
Sheffield Chris Weldon 08456 041399 chris.weldon@unitetheunion.org

 

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