DefenceEye, April 2014

a message of support via [email protected].

If you are located on a site with QinetiQ workers, why not ask them to join Prospect? Please contact Annette for leaflets or more information.

DEFENCEEYEProspect members in the defence industry

www.prospect.org.uk • Issue 1, April 2014

Prospect • DefenceEye – April 2014

Member recruit member campaignFROM 1 March, Prospect members who recruit a colleague will be able to choose a reward. For every new colleague who is recruited, members will be

able to choose a £10 shopping voucher or to make a donation to charity. A leaflet is included with this issue of Defence Eye. Find out more at www.prospect.org.uk/mrm

■ You can order more member recruit members leaflets from central services. Contact them by phone 020 7902 6600 or email [email protected]

Minister for Portsmouth fails to stem job lossesTHE CLOSURE of the naval shipbuilding facility in Portsmouth is now scheduled to be complete by October 2014.

Despite being the only yard in England capable of building complex warships, the government has shown little inclination to intervene and instruct BAE Systems to maintain a shipbuilding capability in Portsmouth naval base.

Prospect has been lobbying and campaigning since the closure was announced in November 2013. This has involved marches, rallies and meetings with local politicians and ministers.

Prospect has also been at the forefront of the regional and national media coverage focused on the end of shipbuilding in the city.

Unfortunately, the appointment of Michael Fallon as ‘Minister for Portsmouth’, has done little to mitigate the

loss of almost 1,000 jobs. After his appointment, the city

faced another bitter blow, with the announcement of the closure of Rolls Royce Marine in the city and the loss of some 80 posts, including many Prospect members. This site will also close in October 2014, meaning a grim autumn for maritime workers in the area.

Prospect and the other constituents of the Confederation of Shipbuilding and Engineering Unions, continues to maintain that shipbuilding should continue in Portsmouth and Glasgow.

The next generation of warships, Type 26, can be built in both locations, but the unions accept that reductions in the size of the workforce would be inevitable.

However, such a solution would retain the capability to build ships in both England and Scotland as opposed to the current proposal to end 500 years of shipbuilding on the South coast.

PROSPECT REPS from QinetiQ held a branch meeting in an illustrious venue in March. QinetiQ’s branch council met at the House of Commons and spoke to shadow defence minister, Alison Seabeck MP.

The MP has already visited the company’s Cody site in Farnborough and will be visiting other QinetiQ sites over the coming months. She is keen to meet employees to talk about staff engagement.

Prospect is continuing to lay the groundwork to regain union recognition in QinetiQ by building membership numbers. Reps and officials will be distributing an Easter themed ‘chicken and egg’ leaflet at several sites in April.

If you would like to support your colleagues in QinetiQ you can send

How you can support your colleagues in QinetiQ

■ QinetiQ reps with campaigns officer Parmjit Dhanda and national secretary David Luxton (far left)

■ Reps brief MP Alison Seabeck in the House of Commons

PICTURES: STEFAN

O CAG

NO

NI

■ Ferrett – Rolls Royce closure another blow

GEO

FF PUG

H/REX

REX FEATURES


NEWS2

PEERS IN the House of Lords have voted against an amendment to the Defence Reform Bill that would put the Single Source Regulations Office within the Department for Business.

SSRO will monitor Ministry of Defence contracts awarded without competition.

Shadow defence minister Lord Denis Tunnicliffe said the creation of the SSRO provided a good opportunity to “drastically improve single source procurement.”

But Tunnicliffe said that as the Bill stands it was “questionable whether there will be genuine independence for the SSRO.”

He pointed out that the defence secretary will:

● appoint the chair from candidates put forward by a panel

● appoint the other non-executive members of the board (with sole discretion over reappointing them)

● approve the appointment of executive members

EUROPE’S DEFENCE NEEDS CLOSER COLLABORATION SAYS MINISTEREUROPE’S DEFENCE industry must become more open and globally competitive, says Philip Dunne Minister for Defence Equipment, Support and Technology.

The minister was at a European Commission

conference on the European defence sector in March. He said: “While defence cannot be a complete internal market, much more can be done to embrace its characteristics.

“We need to separate

state interests from the commercial operations of defence companies, to allow for closer collaboration, and yes the potential for more consolidation.”

■ Read the speech at http://bit.ly/dunne_speech.

MOD publishes equipment planTHE MINISTRY of Defence has published its second annual summary of its defence equipment plan.

The document sets out MOD’s plans for the next 10 years to “deliver and support the equipment our armed forces need to do the jobs we ask of them.”

MOD plans to spend around £164bn over the next ten years on new equipment, data systems and equipment support costs. The £164bn includes £4.7bn for contingency and unallocated funding of £8.4bn.

■ http://bit.ly/equipplan2013

THE NATIONAL Audit Office produced two reports in February which looked at the Ministry of Defence’s equipment plan and major projects.

The equipment plan report found that MOD’s procurement budget is now more stable, despite a £754m increase in the cost of the carriers, but there are still risks to the affordability of the plan.

The major projects report 2013 reviewed progress on the 11 largest defence projects. It concluded that, with the exception of the Queen Elizabeth Class aircraft carriers, there have been no significant cost increases and only minimal in-year delays.

■ http://bit.ly/equipplan_2013-2023 ■ http://bit.ly/majorprojectreport2013

Peers reject proposal to put put scrutiny of defence contracts in business department

● approve the pay of the non-executives

● influence the pay of executive members and their senior staff, and

● directly control the SSRO’s budget. Lord Tunnicliffe said this did not

“bode well for alleged independence, and placing these responsibilities into another government department, for example BIS, is surely more appropriate and wise.”

The amendment was lost.

National Audit Office reports on MOD equipment plan and major projects

Published by Prospect, New Prospect House, 8 Leake Street, London SE1 7NN

DefenceEye editor: Marie McGrath e [email protected] t 020 7902 6615

Printed by: College Hill Press

CROW

N CO

PYRIGH

T


NEWS 3

DEFENCE SECRETARY Philip Hammond’s announcement of a £300m upgrade to BAE’s submarine yard in Barrow is a welcome boost to

those campaigning for the Successor programme.

Upgrading the Barrow yard means that the option of continuing the UK’s historic commitment to continuous-at-sea-deterrence is retained.

The upgrade will involve constructing new buildings and

facilities and refurbishing current equipment ready to begin work on

Successor in 2016.But despite advanced preparations,

there is still an element of doubt about the size of the programme because of differences between the coalition partners.

The Liberal Democrats’ policy is to build two submarines. The Royal United Services Institute raised the possibility of operating with three.

Although both options claim to reduce the overall costs associated with the Successor programme, any savings would not be realised until the early 2030s. Delaying the programme would risk the safe operation of the existing fleet and increase the cost of new submarines.

Constructing the next generation of nuclear submarines will need to begin in 2016 to replace the existing fleet in 2028.

The government’s 2013 Trident

Alternatives Review said extending the lifetime of the Vanguard class of submarines was high risk.

These risks were underlined by the government’s precautionary decision, announced in March, to refuel HMS Vanguard with a new nuclear core during its next scheduled deep maintenance period from 2015.

The limits on the lifetime of the existing fleet present challenges to those considering a reduction in the size of the Successor programme.

The merits of abandoning continuous-at sea-deterrence are not clear. Reducing the fleet from four to three submarines could save £4bn. But this does not take into account the higher unit costs that suppliers are likely to charge because of a smaller order.

More importantly, Successor would require greater resilience if the size of the fleet was reduced. Even with a more flexible deterrence stance, the demands on maintenance and training would be even more critical and the credibility of the UK’s deterrence would be vulnerable to strategic shock, such as an accident on one of the submarines.

Prospect researcher Jonathan Green said: “Procurement decisions in the last defence review caused gaps in defence capability. But if the government delays the Successor programme it will change the UK’s deterrence posture.”

Barrow upgrade welcome but Successor programme still unclear

REFUELLING HMS VICTORIOUS SECRETARY OF State for Defence, Angus Robertson has confirmed that the additional £150 million announced in March 2014 to keep open the option of refuelling HMS Victorious will include investment in the refuelling facilities at Devonport Dockyard and in the reactor core production capability at the Rolls Royce facility in Derby.

■ Source: House of Commons, written answer, 18 March 2014

Love football? Love workers’ rightsPROSPECT GENERAL Secretary Mike Clancy has written to football’s governing body FIFA about the fatality rate and labour abuses associated with the 2022 world cup.

Labourers work 15 hours a day, six days a week for $8.00 a day. Eighty per cent of deaths are from heart attacks (linked to heat stroke), suicide and site accidents.

The letter calls on FIFA to use its wealth and influence to bring about change to the treatment of workers on construction sites associated with the event.

■ Download and share a presentation called ‘The cost of a life’ from http://bit.ly/world_cup_workers. Find out how you can support the campaign at http://library.prospect.org.uk/id/2014/00417

■ Hammond – Upgrade for Barrow


4 PERFORMANCE MANAGEMENT

New Prospect resourcesPROSPECT HAS produced two new members’ guides on stress. Guide number 8 concentrates on work-related stress; guide number 29 is for members who are line managers.

■ You can download them from http://library.prospect.org.uk/id/2005/00629 and http://library.prospect.org.uk/id/2014/00396.

WorkTime, YourTime postersThe WorkTime, YourTime campaign aims to:

● support reps seeking to secure a flexible and healthy work/life balance for everyone

● provide flexible work options ● prompt you to consider

whether your work/life balance is the best you can achieve.

■ You can download new posters for your noticeboards from http://bit.ly/flatbatteries.

Step up the campaign against performance management

THE MOD’S performance management system – introduced in April last year – imposed a system of forced distribution (also known as guided distribution and stack ranking) in which staff are rated in secret and to a quota. The performance rating is principally aimed at supporting:

● a new performance pay regime which allocates non-consolidated performance pay (ie the bonus) to the top 25% alone; and

● a new regime for managing poor performance – the bottom 5% will find themselves in a new procedure designed to make ‘managed exits’ (ie dismissals on capability grounds) quicker and easier.

Prospect is opposed in principle to the new PM system. National secretary Steve Jary, said: “Forced distribution has been proven to fail in a number of large employers and, crucially, it undermines effective teamwork – generating competition within teams and neglecting the 70 per cent or so in the middle.

“The exclusive use of civil service core competencies will also prejudice staff who are employed for their specialist knowledge and skills. And we have fundamental issues with the transparency, objectivity and fairness of the new systems.

“MOD’s old appraisal and

■ Jary – Hold meetings for members and non members

performance pay system was discriminatory and we believe that the new system will be even worse. The MOD has ignored these concerns and has not carried out a thorough impact assessment.

“Members’ challenges to the new PM system will be a vital component of our campaign to get it withdrawn,” he added.

Prospect is encouraging branches to hold meetings of members and non-members over the Spring to brief them on performance management. If you would like a MOD group councillor to speak at a meeting, please email [email protected]

■ http://bit.ly/cs_perf _man ■ http://library.prospect.org.uk/

id/2014/00249


NEWS 5

CAPITA WINS DIO CONTRACTTHE MINISTRY of Defence has selected Capita to be the strategic business partner for the Defence Infrastructure Organisation. DIO’s 4,900 staff manage the UK’s national and international defence infrastructure.

Capita will lead a partnership with URS and PA Consulting. The 10-year contract could be worth around £400 million to Capita.

URS will support the operational management of the estate and capital projects.

PA Consulting will provide expertise in managing complex change programmes for the MOD.

Prospect national secretary Steve Jary said: “DIO has been transformed in the last couple of years and is starting to prove its worth. The case for contracting out the strategic management of the organisation is simply not there.

“Prospect members believe DIO should be in the civil service so it can continue to deliver for the armed

services in the long term.”The partnership will initially carry

out an 18-month project to produce a blueprint for the future management of the estate.

DIO will remain fully within the Ministry of Defence for the first phase of the contract.

But Capita will help the DIO prepare to move to an ‘Incorporated Model’ ie creating a Government Company (GovCo) to manage defence infrastructure.

This would be a separate legal entity, 100% owned by the secretary of state for defence and managed by Capita under contract.

MOD will oversee the activities and performance of the new company through a ‘governing authority’ within the department.

The announcement was made by defence secretary Philip Hammond in a written statement in March. The full statement is at: http://bit.ly/DIO_statement

DE&S starts life as a new entityDefence Equipment and Support became a ‘Bespoke Government Trading Entity’ on 1 April 2014. Prospect negotiator Anna Biggs outlines Prospect’s aims in a year of transition for the organisationDEFENCE EQUIPMENT and Support is now in effect a trading fund and will take the defence equipment programme into new, government controlled ownership. Its £14bn annual budget accounts for almost half of the total defence budget.

In December, the secretary of state for defence called a halt to privatisation because the potential benefits were outweighed by the risks.

Prospect welcomes the fact that members will remain in the civil service, but there is much work ahead.

Anna Biggs, Prospect negotiator said: “We must now ensure that our 1,100 members have the remuneration package and employment flexibilities that we cannot achieve under the current government’s inflexibility and restraints on pay and recruitment.

“It is shameful that in order to attract and retain the right staff to the civil service, DE&S has to rebadge itself.

“While we are in the transition phase, Prospect will make the case

Nine bidders in line up for DSGTHE GOVERNMENT has confirmed its intention to sell the Defence Support Group. DSG maintains, repairs, overhauls, upgrades and procures support services for defence equipment. It employs 2,700 staff at 14 locations.

Philip Dunne, minister for defence equipment, support and technology said MOD intended to “structure the sale in such a way as to preserve continuing assured access to the services provided by DSG through a contract for service provision.”

However, DSG’s Electronics and Components Business Unit and its sites at Sealand and Stafford will be excluded from the sale and retained in the MOD.

An invitation to negotiate has been issued to nine potential single bidders and consortia who passed the pre-qualification stage. The final sale decision will be taken later in the year.

The announcement was made in a written statement on 31 March.

for market-facing pay and career development while retaining the civil service positives, ie pensions and redundancy protection which trade unions have fought hard for.

“We also wish to stop the invidious use of higher starting pay which is a blunt instrument aimed at recruiting but not retaining staff.

“We also want to ensure that the pay freedoms are used to expose and stop DE&S’ reliance on contractors and military staff who account for a substantial amount of the limited pay pot.

“Prospect also hopes to break away from the bureaucratic and incoherent performance management procedure that MOD is currently imposing.”

DE&S has assured Prospect that there will be trade union engagement on the way ahead. The union is awaiting confirmation of the changes the new organisation wishes to introduce.

DE&S employs approximately 16,000 people – one third of them military officers – and is based in Abbey Wood, Bristol.

“It is shameful that in order to attract and retain the right staff to the civil service, DE&S has to rebadge itself”

the evolving requirements agenda, or “pull”, as now. We believe that the MOD should further develop excellence by accelerating promising research lines whilst culling others.

● MOD research requires a balance of inputs and interests, with large industry, small and medium-sized enterprises, academia and the Defence Science and Technology Laboratory playing the correct part: the current distribution is neither justified nor optimal.

● We commend to MOD the benefits of an open innovation network approach; achieving more through co-investment and leverage, gaining access to wider S&T expertise, and gaining input and challenge from


6 RESEARCH

Your views on the next defence reviewCHATHAM HOUSE, the independent think tank is already thinking about the next Strategic Defence and Security Review in 2015.

It warns against the three armed services struggling against each other to secure the largest slice of a diminishing cake.

Instead it calls for “a risk-sharing approach to the SDSR, embracing the widest conceivable range of stakeholders in national strategy: the

armed services, government departments and agencies, industry, civil society, and allies and partners.”

Prospect is one of those stakeholders and is also doing some forward planning on this. The union is keen to hear from reps and members about what should be in the review.

■ If you would like to contribute, please email [email protected]

THE MINISTRY of Defence should create science and technology research centres aligned with key world-class universities that can leverage other investments, says the Defence Scientific Advisory Council.

DSAC provides independent advice and analysis to the Secretary of State for Defence on science, engineering and technology matters. It has published the first phase of a study that will inform internal MOD preparations for the 2015 Strategic Defence and Security Review.

The study aimed to provide a perspective on research spending, with a particular emphasis on future needs. Phase two of the project will look at how much should be spent and on what.

The council’s five recommendations were:

● The collective arguments of this paper suggest a repositioning of science and technology research, from the current largely neutered activity, effectively corralled at the early stages of requirements-driven supply chains, to becoming a strategic, influential and essential activity in its own right, mitigating future risks within uncertain futures and being agile in exploiting opportunities whether foreseen or not.

● MOD should consider adopting a “wide and wise” portfolio approach to its research requirements, with a significant portion of activity being responsive to opportunities, or “push”, whilst the majority supports

“The default response to declining budgets, salami slicing, is of limited value when applied to science and technology programmes and is positively damaging when applied to upstream research”

outside of the existing group-think and operational paradigms. This should include the creation of S&T research centres aligned with key world-class universities that can leverage other investments. It should also build on the lessons from the successes of DARPA-style activities (Defence Advanced Research Projects Agency), and thus commit to making the most of the small business research initiative (SBRI) investment opportunities.

● All of this requires the formulation of a clear research vision that should be owned, championed, and led from the top; together with a well-defined research mission to develop essential expertise and resources. Then others can confidently align their aspirations, plans, R&D, business activities and financial investment with those of the MOD, and the nation can be assured that the UK will indeed have access to game-changing technologies, addressing “unknown unknowns”, under uncertain futures.

■ Download the report from http://bit.ly/dsac_report

DEFENCERESEARCH NEEDS Aclear vision

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Documents

DefenceEye, April 2014