NEC Report to BECTU 2002 Conference paragraphs 35-70
The BECTU Staff Retirement Scheme
35 When BECTU was formed in 1991 two staff pension schemes were inherited for its, with staff accruing benefits at different rates. Both of those schemes at the time were well funded and after some two years of investigation it was decided in 1996 to close both of those schemes, to transfer the assets to a single scheme, that scheme being known as the BECTU Staff Retirement Scheme.36 When the first formal valuation of the BECTU Staff Retirement Scheme took place on the 1 November 1997 the scheme was funded to 122% of its Minimum Funding Requirement according to the actuaries of the scheme. There was a surplus in the scheme of £240,000 and had the union as an employer at that time decided to wind up the scheme, the scheme could have purchased deferred annuities in respect of all its liabilities, and the union would have received a refund of £640,000.
37 The National Executive Committee since November 1997 have received the audited annual accounts of the BECTU Staff Retirement Scheme and these accounts have appeared to demonstrate that in each of the years in question the scheme had been achieving healthy returns on investments. In October 2001 the General Secretary received from the actuaries the valuation for the three years 1997-2000. The valuation indicated that the BECTU Staff Retirement Scheme was, on the 1 November 2000, seriously under-funded in respect of the Minimum Funding Requirement, and that BECTU as an employer would be required to make a contribution of between 40% and 50% of the pensionable staff salary bill in order to return the funding to 90% of the Minimum Funding Requirement level within one year of signing off the valuation.
38 The General Secretary had convened an emergency meeting of the National Executive Committee on the 27 October 2001 to report in detail on the position as it then was. The General Secretary reported to the National Executive Committee that the valuation received in early October was the first indication that any of the professional advisers to the scheme had given that the scheme was in trouble. Under the rules and regulations governing pension schemes, particularly final salary pension schemes, schemes needed to be funded to at least 100% of their liabilities. The manner in which this is measured is extremely complex and would normally be beyond the understanding of even experienced trustees of a pension scheme. The reason that trustees are required to engage professional advisers is so that the professional advisers can alert them to issues like this.
39 The audited accounts of the BECTU Staff Retirement Scheme for the year ending 31 October 1998 stated that the return on investments was 14.5%. In order to achieve the MFR valuation target the scheme needed to make a return of 12% in that year. In the year ended 31 October 1999 the audited accounts showed a return on investments of 15.2%. The scheme that year had been required to make a return of 16% on its investments. In the year ended 31 October 2000 the accounts showed a return on its investments of 10.9% and a target of 8% had been necessary to meet the MFR valuation target.
40 These accounts had been submitted to the National Executive Committee on each of the years in question. The trustees of the pension scheme and the National Executive Committee therefore had no reason to believe that there was any cause for concern. In the actuarial valuation report which had become available in October 2001, the actuaries stated that the actual return of investments for 1998 was 6%, for 1999 6% and for 2000 4%. It also appeared that when the actuaries had valued the scheme in 1997, their valuation report had been wrong and the valuation of the scheme should have been reported as 113% not 122%.
41 The General Secretary reported that immediately following the meeting with the professional advisers to the scheme on the 11 October he had convened an urgent meeting with the union's solicitors to start the process of establishing whether or not the professional advisers to the pension scheme had discharged their duties in a full and proper manner or whether some or all of them had behaved in a negligent manner. The General Secretary reported that those investigations were now ongoing and it would not be possible to give a report on the outcome for some weeks.
42 The General Secretary also reported that he had had a meeting with Unity Trust Bank to advise them of the potentially serious financial situation being faced by the union, that the bank had been very supportive, had recognised that these financial difficulties were not of the union's making and had agreed, in principle, that it would, if it became necessary, make further loan facilities available to the union.
43 The National Executive Committee at its meeting on the 27 October considered the financial crisis that was now being faced by the union as a result of what appeared to be the negligent manner in which some of the professional advisers to the pension scheme had carried out their duties. The National Executive Committee agreed that the General Secretary should be authorised to take the following measures:
44 The General Secretary on behalf of the National Executive Committee has continued to take legal advice on this matter and the National Executive Committee considered Counsel's written advice at their meeting on the 10 February 2002. Counsel's advice to the National Executive Committee suggests that on the information currently available some of the professional advisers to the BECTU Staff Retirement Scheme have a case to answer in respect of the manner in which they discharged their duties. Counsel pointed out that it would be necessary to engage an independent actuarial expert to reconstruct events that had affected the BECTU Staff Retirement Scheme, for the independent expert to offer an opinion as to whether or not the losses they were suffering could have been mitigated had the poor performance of the scheme been drawn to the attention of the Trustees and/or the employer at an early stage. Counsel also recommended that BECTU should approach the Trustees of the scheme with a view to forming a common front in respect of any action that could be taken against the various advisers to the scheme. Counsel also stated at the meeting with the General Secretary that if a case were to go to a full hearing in the High Court and BECTU were to lose the case, that it would be facing costs in the magnitude of a quarter of a million pounds in respect of the other side's costs and a similar figure in respect of BECTU's own costs. The National Executive Committee agreed that before any decision could be taken to initiate proceedings, that it would be necessary to obtain the views of an independent actuarial expert.
- to embark on discussions with the Trustees of the pension scheme with a view to agreeing a Schedule of Contributions to the scheme within the 8 week period that would start once the valuation report had been signed off;
- to obtain whatever professional advice he believed to be necessary to conduct the fullest possible investigation into the circumstances that had created the shortfall in the pension scheme;
- to inform the active members of the scheme that the employee contribution to the pension scheme would increased from 5% to 7% on the 1 January 2002;
- to seek to agree with the Trustees that all new staff who joined the pension scheme from the 1 November 2002 should accumulate pensionable service at 60ths and not 40ths as current members do;
- to seek to agree with the Trustees that the guaranteed 4% increase given to pensioners of the scheme should be scrapped from the 1 January 2002 but that this was to apply to all future service not benefits already earned;
- that the two vacant posts that exist as a result of the resignations of Brian Marsh and Sue Harris should not be filled in the coming year;
- that the proposed pay increase of 2.5% to staff at the supervisory level and above and the 3.5% increase for all other staff should be paid from the 1 January 2002 subject to the General Secretary being able to agree with the Trustees the proposed change of benefits to the pension scheme, and that the second part of the pay increase agreed with the shops in 1999 which was to be paid in January 2002 should be deferred and paid from the 1 November 2002, subject to the General Secretary being able to agree the proposed changes to the benefits of the pension scheme with the Trustees.
45 The Trustees of the BECTU Staff Retirement Scheme at their meeting in February 2002 agreed to the suggestion from the National Executive Committee that the Trustees and BECTU should jointly take legal action against some of the advisers to the pension scheme. BECTU's solicitors, Thompsons, are in the process of appointing an independent actuarial expert.
BECTU's head office
46 Following the decision taken by BECTU's annual conference in 2001 the National Executive Committee continued in what turned out to be its protracted efforts to purchase 373-377 Clapham Road.
47 The effects of the terrorist attacks in New York and Washington on September 11 have continued to percolate through the world economy and have undoubtedly had some effect on property values, and in particular on the demand for property in central London by the audio/visual industry. Our agents Hutchinson Morrison Childs conducted a review of the current situation in early January 2002 and whilst they concluded there have been some drops in retail values and some slowing down of the market, their conclusions did not suggest that the position was fundamentally different to that examined by the National Executive Committee when the original decision was taken.
48 The National Executive Committee convened an emergency meeting on the 26 January 2002, the main purpose of which was to examine all aspects of the proposed project to purchase 373-377 Clapham Road and to refurbish the union's existing offices in Wardour Street and then place them on the rental market. Following detailed examination of the latest available information and a careful look at the project costs the National Executive Committee authorised the General Secretary to sign the necessary documentation to exchange contracts with the Family Housing Association, the current owner-occupiers of 373-377 Clapham Road, on the 28 January 2002. The completion date for the sale is the 5 June 2002 and it is expected that the head office operation will have moved to 373-377 Clapham Road and be operative by August 2002. A verbal supplementary report will be given.
Proposition 3/02 (AP3) Premises
That this annual conference [instructs the NEC to consider] that on completion of the refurbishment at 111 Wardour Street a BECTU presence and facility is maintained in part of the building to keep a high profile in the West End of London and to encourage recruitment.
Proposition 4/02 (AP4) Cost of new premises
That this annual conference instructs [the NEC to provide] full details of the cost of purchasing and renovating the new premises in Clapham to divisional committees.
Proposition 5/02 (AP5) Facilities for members
That this annual conference instructs the NEC to make adequate and appropriate facilities available at the union's head office for the use of members, which should include as a minimum:- A members' meeting room
- A computer suite with Internet access
- A resource library, accessible to all members
Interpretation of rule
49 The National Executive Committee has a duty under rule 33(l) to report to annual conference any decision it takes on the interpretation of rule or on matters which the rules are silent.
50 The National Executive Committee at its meeting on the 26 August 2001 considered two motions that had been submitted to the Standing Orders Committee of the London Production divisional conference. The text of the motions considered by the National Executive Committee were as follows:
Central London meeting space51 The National Executive Committee concluded that these motions were incompatible with rule 31(c) which states:That this London Production Division Conference urges the NEC to seek suitable accommodation for, at the very least, meeting space or, at best, space for LPD Officials to work from, in Central London, should the Union move its headquarters to Clapham or any other non-central location.
Staff
That this London Production Division Conference expresses deep concern at the levels of stress experienced by staff servicing this Division and the consequent effect this has on members' services and the Division's falling membership. The Division believes that this stress is caused by a management style above Divisional level; exasperated by staff requiring stress leave, not being replaced, and so putting further pressure on the remaining staff.
There are large areas of the film and television industries, which the Division needs to recruit from to maintain membership levels and credibility such as post-production, and television production companies. With the Division's current level of staffing this is impossible.
The London Production Division demands urgent action from the NEC for the return of staff levels to their full complement within the Division and for the adoption of a management style more befitting of a caring trades union.
(c) Subject to the authority of the National Executive Committee, divisions shall set up machinery for dealing with:52 The National Executive Committee, when considering this matter, took into account rule 33(a), which charges the National Executive Committee with the general management and administration of the union's affairs; rule 33(q), which places the National Executive Committee in charge of staff; and rule 33(l), which gives the National Executive Committee the power to determine any question on which the rules are silent. Following very careful consideration of this matter the National Executive Committee ruled that the propositions as submitted to the London Production divisional conference could not be admitted to the order paper under rule.(i) pay, conditions of service and grading of members in the division and the method of securing the acceptance thereof by members affected;
(ii) matters affecting the organisation, working conditions and staffing of members in the division;
(iii) policy on professional standards, current industrial practice and future developments that directly affect the members of the division;
(iv) proposals on these matters put forward by employers;
(v) the co-ordination of industrial strategy and the creation of industrial policies affecting members of the division;
(vi) business arising out of these matters referred to it by the branches in the division or subdivision and by area committees;
(vii) matters referred to the division by the National Executive Committee and by conference;
(viii) matters arising out of the divisional conference.
53 The National Executive Committee authorised the General Secretary to suggest to the Standing Orders Committee of the London Production division that the propositions could be reworded as follows:
- There are large areas of the film and television industries which the Division needs to recruit from to maintain membership levels and credibility such as post-production and television production companies. With the Division's current level of staffing this is impossible. The London Production Division demands urgent action from the NEC for the return of staff levels to their full complement within the Division
- That this London Production Division Conference urges the NEC to seek suitable accommodation for, at the very least, a meeting space.
Working Time Regulations
55 The European Court of Justice gave its ruling on the case brought by BECTU against the UK Government on the 26 June 2001. The ECJ found in favour of BECTU and against the UK Government and by its ruling instructed the UK Government to amend the Working Time Regulations to ensure that all workers are entitled to paid holidays from day one of their employment.
56 Following the ECJ's decision the Department of Trade and Industry issued a consultation document setting out how it intended to interpret the judgement and to amend the Working Time Regulations. The National Executive Committee were of the view that the DTI's proposals were incompatible with the findings of the ECJ.
57 BECTU became involved in a robust exchange of views with the DTI which led to a meeting between the Minister, the General Secretary and the DTI's legal advisers and Thompsons solicitors. Following that meeting the DTI re-wrote the amendments they were intending to make to the Working Time Regulations and made it clear in writing to the General Secretary that they absolutely conceded the principle that all workers should be entitled to paid leave from day one of their employment.
58 The case did not go back to the UK Courts of Justice. An out of court settlement was agreed, in which the Government agreed to meet all of BECTU's costs. The National Executive Committee are proud of the fact that BECTU is the first union to have taken the Government to court over the interpretation of a European piece of legislation and proud of the fact that its determination to challenge the Government has resulted in a position whereby all workers in the UK are now entitled to paid holidays from day one of their employment. The National Executive Committee regret the fact that some employers are still seeking to evade their responsibilities under this legislation.
Proposition 6/02 (AP15) Working hours
That this annual conference [calls] for tighter control over hours with regard to the European Working Time Directive and the implementation of a ceiling for realistic working hours.The euro and the European Union
59 For a number of years BECTU's delegation to the TUC and to the Labour Party have not been able to agree a position in respect of our attitude to the European Union and the euro. The General Council of the TUC submitted its position in writing to the 2001 Trades Union Congress. This position was circulated in Branch Circular 613 and branches were invited to take a view. Had the 2001 Trades Union Congress not been cut short by the events which took place in America on September 11, BECTU would have abstained when asked to vote on the General Council motion. The National Executive Committee is seeking the guidance of conference on this matter. The TUC General Council statement is attached as Appendix C.Proposition 7/02 (AP20) The Euro
That this annual conference notes the success of the Single European Currency and believes that Britain should join the Euro as soon as possible.BECTU's staffing
60 The following members of staff have retired or left BECTU's employment since the union's annual conference in 2001: Sue Harris, Brian Marsh, Ilka Walkley, Hilary Irving, Shirley Ashton. Nick Wright and Leanora Gleeson, on fixed-term contracts to cover the maternity leave of Janice Turner and Rebecca Haywood-Powell respectively, left BECTU's employment on the return to work of the permanent postholders. The following members of staff have joined BECTU's employment during the last year: Ann Millington (Membership Manager), Chris Waters and Richard Noble (database information clerks), Yvonne Gregory and Teresa Debrou (secretaries).61 Dean Baker has been seconded to the acting National Official position and Phil Hooley has been engaged on a part-time basis. Both have been helping out in the absence of staff on long term sickness. Feyi Raimi-Abraham has been given a one year attachment from her secretarial position to the National Official position. She has been given a specific brief to help organise and recruit in the contract cleaning, security and catering firm working for the BBC, Trillium, and in the union's efforts in Sky Broadcasting.
62 Assistant General Secretary Marilyn Goodman has taken legal action against the union as her employer, in which she alleges that her stress related illness has been caused by her working conditions. The union's insurers are resisting this claim.
63 On 4 March 2002 head office received notice from the secretary of the Writers & Researchers branch that there are a number of questions in respect of staffing which that branch will wish to raise formally at the union's annual conference. In order to give the greatest possible clarity to these, the questions and answers are set out below:
How many staff officials have left for reasons other than retirement in each of the last five years? 0 (1997) 4 (1998) 3 (1999) 5 (2000) 3 (2001)How many of the staff officials who left for reasons other than retirement in each of the last five years were women?
0 (1997) 1 (1998) 2 (1999) 4 (2000) 2 (2001)
Of those staff officials who left for reasons other than retirement what is the mean average length of tenure?
n/a (1997) 8.5 years (1998) 6.3 years (1999) 5.3 years (2000) 4.6 years (2001)
How many compromise agreements have been made over the last two years and what is the gender breakdown for these figures?
2 (2F) (1999) 3 (1M, 2F) (2000) none (2001)
How many compromise agreements have been entered into following cases of gross misconduct?
none
What has been the cost of staff severance pay for officials in each of the last five years?
nil (1997) £2,700 (1998) £3,900 (1999) £14,600 (2000) nil (2001)
[figures for severance pay are approximate]
Proposition 8/02 (AP10) Equal opportunities
That this annual conference [believes] that BECTU should endeavour to employ substantially more women staff in senior positions. Annual conference requires that the NEC should monitor the gender balance of BECTU's staff, particularly at senior levels, and that it should publish, within BECTU, the current ratio, on an annual basis.General Federation of Trade Unions
64 The National Executive Committee at its meeting on the 18 November 2001 considered a report from AGS Gerry Morrissey that BECTU should affiliate to the General Federation of Trade Unions. In considering the arguments as to why we should affiliate to the GFTU, the National Executive Committee noted that the GFTU were planning to run 38 training courses under the auspices of their educational trust in 2002. These course are residential and last for two days, normally over a weekend. All GFTU affiliates will be entitled to at least one delegate attending each course depending on take-up. There may be more than one. The costs for the courses, including travel and accommodation is met by the GFTU Educational Trust. In addition the Education Trust would be prepared to provide a two day training course each year on issues of importance to BECTU and this course would be for BECTU members only. Again the GFTU Educational Trust would meet the entire cost of this course. The GFTU offices are situated in Upper Woburn Place, opposite Euston Station and these offices are made available to affiliates free of charge and the conference rooms are available on a 'first come, first served' basis. Where affiliates require the use of facilities at weekends the only cost they would incur would be the cost of a caretaker to lock up. Additionally the GFTU has a large research department covering health and safety, press and collective bargaining research. It provides affiliates company reports free of charge including an analysis on the company report. The National Executive Committee were of the view that the GFTU training facilities complemented BECTU's own training facilities. BECTU has made it clear to the GFTU that it regards the first year of affiliation as a trial year, and that if BECTU is satisfied with the affiliation it will increase its level of affiliation in 2003 to £9,010 and would review further levels of affiliation from time to time. The National Executive Committee, against that background, agreed to affiliate to the GFTU.
Trades Union Congress etc
65 BECTU's delegates to the 2001 Trades Union Congress, which was held in Brighton, were the General Secretary, President, Vice-President, Treasurer, Tudor Gates and Rose McDonald. As stated, Congress was curtailed as a result of the terrorist attacks on September 11.
66 The National Executive Committee decided at its meeting on the 6 January 2002 that BECTU should be represented at the TUC Women's Conference by Trish Lavelle, Edna Hewitson, Rose McDonald, Belinda Hale, Angela Knight and Rebecca Whitehead.
67 BECTU was represented at the 2001 conference of the Scottish TUC, the Wales TUC and the Irish Congress of Trade Unions. BECTU continues to be represented on the council of the Southern and Eastern Regional TUC. Jack Amos (Vice-President) represents SERTUC on the London Mayor's Cultural Strategy Group.
Labour Party
68 BECTU was represented at the 2001 Labour Party Conference held in Brighton by the President, Tony Lennon, AGS Gerry Morrissey and Treasurer Turlough MacDaid. BECTU was also represented at the conferences of the Scottish Labour Party and the Wales Labour Party.
Proposition 9/02 (AP19) The Labour Party
That this annual conference instructs the NEC to hold a referendum amongst the membership on whether BECTU should continue to be affiliated to the Labour Party. Additionally, the NEC is instructed to find alternative forms of national parliamentary representation better suited to BECTU's objectives, and these alternatives should be offered to conference next year, depending on the result of the referendum.
International matters
69 The President and the General Secretary attended the 64th Triennial IATSE Convention in Chicago in July 2001, and the National Executive Committee are pleased to welcome Tom Short, the International President of IATSE, to BECTU's 2002 annual conference. IATSE is the International Alliance of Theatrical Stage Employes, Moving Picture Technicians, Artists and Allied Crafts of the United States, its Territories and Canada.
70 The President, General Secretary and AGS Gerry Morrissey attended the first UNI World Congress which was held in Berlin in September 2001. BECTU had been represented at the Euro-MEI General Assembly which had taken place in Brussels in June 2001 by the General Secretary, AGS Gerry Morrissey, Tudor Gates, Jack McNairn, Gino Najera and John Sealey. Media Entertainment International (MEI) is a sector of Union Network International (UNI).