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Employment Law Recap Of 2005…

submitted by FMF Member, Mark Shortell of HR Advantage

Below is a short recap of the main employment law changes implemented in 2005:

The Road Transport (Working Time) Regulations – March 2005
Established new limits on weekly working time, night-time working and continuous work without a break for employees in road transport.

Information and Consultation regulations – April 2005
As from 6th April employees in organisations with over 150 staff have the right to be informed and consulted on a regular basis about important issues affecting their work. The effect, in essence, is that 10% or more of employees can request an Information & Consultation agreement or the employer’s can begin the process themselves.

Employment Equality (Sex Discrimination) Regulations – October 2005
The previous definition of sex discrimination was extended to cover any act that leads to ‘intimidation’ or ‘degradation’ acting to clarify the existing law, with the main effect being that an individual who believes they are being harassed can make a claim that they are being discriminated against.

Pensions Act implementation
Pensions rules are changing fast; the first tranche of changes came in during 2005 and more are due shortly.

National minimum wage increased – October 2005
The rate for adults increased from £4.85 to £5.05 per hour and the rate for ages 18-21 increased to £4.25 per hour.

Civil Partnerships – December 2005
Provided same sex couples in civil partnerships with comparable status to married couples. This impacts on paternity and adoption leave & pay, flexible working, and sexual orientation regulations.

Disability Discrimination – December 2005
The scope of the Act was extended to cover progressive conditions; HIV, multiple sclerosis and cancer, and clarify protection for people with mental illness.

For further information or a discussion on any of the above, please contact: Laura Cerasale on 01494 451 681 or email laura@hradvantage.co.uk

Mark Shortell - 03/12/05
Breakfast Meetings For 2006

08:00 a.m. - Last Tuesday Each Month

In reviewing the activities of the Food Forum in our first year, 2005, we came to the conclusion that the concept of mid-afternoon meetings had proved less member-friendly than we had hoped. Clearly for a lot of members getting away from work is not so easy once you are embroiled in the issues of the day!

So, after consulting members (and considering timetabling issues at Harper Adams) we decided to move the meeting time to 8:00 am on the last Tuesday of each month.

The meeting will include a working breakfast and the venue for our meetings will therefore be the new Dining Room in the Queen Mother Hall. (this is to the right and behind the Library when facing the Library from the roadway.)

A light breakfast will be provided so it would be really useful if members could let us know if they, or any of their guests, have special dietary needs. Breakfast will be free for members but a modest charge will be made for additional guests' breakfasts.

The meetings will be run to a tight scheduled - to finish by 10:00 am. But for early birds and those who have some time to spare there will always be an opportunity for networking both before and after the formal meeting.


Jeremy Quested - 02/12/05
Climate Change Levy - 1

In this, the first of three articles, Andy Pickersgill, a member of the Food Manufacturing Forum and freelance consultant specialising in waste reduction and energy conservation, introduces the legislative background to the Climate Change Levy.

In two follow-up articles (to be published in the February and March issues of the FMF Newsletter), Andy will explore Energy Efficiency - Qualitative Requirements and Emissions Trading respectively. If your business is currently working under an agreement resulting from the Year 2000 Regulations, this straightforward article de-mystifies the scheme and explains clearly the benefits and drawbacks of participation, given that non-participation means accepting and having to absorb a potentially avoidable tax of between 10 and 20% on your gas and electricity costs.

It is therefore well worth a read! - Ed

Article 1
The Climate Change Levy

Legislative Basis

The legislative basis of the Climate Change Levy is the Finance Act 2000. Eligibility to enter into a Climate Change Agreement is determined by reference to the Pollution Prevention and Control (England and Wales) Regulations 2000.

What is the Climate Change Levy?

The UK Government introduced CCL as one of a range of policies to reduce emissions of greenhouse gases. CCL is a tax charged on energy delivered to industrial and commercial energy users since April 1st 2001. It is charged on electricity, gas, coal and LPG and is collected by your energy suppliers. The impact of the Climate Change Levy on your energy costs depends on your current fuel mix and energy tariff. The Levy adds about 20% to your gas costs and 10% to electricity costs. Oil is not subject to the Climate Change Levy.

The Levy is intended to be revenue neutral for business. To achieve this, revenue from the Levy is recycled to business in the form of a 0.3% cut in the rate of employers' National Insurance Contributions, together with support for investments in energy efficiency.

Rates of Levy

The table below shows which fuels will attract the levy together with the levy rate. Oil products are not subject to the Climate Change Levy.

FuelRate of Levy
Electricity0.43 p.kWh
Gas0.15 p/kWh
Coal1.17p/kilogram
LPG0.96 p/kilogram

Several exemptions are allowed for, these include:

  • "Good quality" CHP
  • Electricity generated from renewable sources, for example solar and wind power
  • All mineral oil based fuels, for example heavy fuel oil, petrol or diesel – as these are already subject to other forms of tax.

Claiming the 80% CCL Discount

The Government recognised that the addition of 10-20% to energy costs would affect industrial competitiveness. In order to maintain the competitiveness of UK manufacturing industry, the Government offered an 80% discount on the levy to “energy intensive users”. In return for the 80% CCL discount, eligible companies must commit to meeting specific targets for improving energy efficiency or reducing carbon dioxide emissions. This commitment is referred to as a Climate Change Levy Agreement (CCLA).

Getting the Discount

HM Revenue and Excise are responsible for informing the utility companies of an establishment’s certification to a CCLA. However, after you have established a CCLA it is advisable to contact your energy suppliers to inform them of the Levy discount. Your energy suppliers will then make adjustments to your billing to give you the Levy discount. The full CCL and your discount will be itemised separately on your fuel invoice. Revenue and Excise are responsible for collecting the residual Levy from each energy supplier.

You will not automatically get an 80% discount. It could be higher, if some of your energy gets 100% discount (e.g. gas for CHP). Alternatively it could be less than 80% if some of your energy is used in a part of your facility that is not eligible for Levy Rebate. You must establish your rate of discount and declare this to your energy suppliers who will adjust the Levy rate as appropriate.

Efficiency Target

Operations that have entered into a CCLA have been set an energy saving target that must be achieved by the end of 2010. The agreed energy saving target is typically set between 10-15% of "primary" energy usage Each facility’s progress towards the overall target for 2010 is measured at 2-yearly intervals with clearly defined quantitative milestones. The 80% discount is offered for 2 year periods in advance. When you achieve a milestone target you will re-certified for your discount for the next two years and progress is then measured against the next milestone in order to qualify for the levy rebate for another 2 years, and so on through to 2010.

There is some flexibility in how targets are set. The main parameters that can be selected by individual participants are:

  1. The "currency" of the target - this can be set in units of energy consumption (kWh) or in units of CO2 emissions.
  2. Whether targets are absolute or relative to production.

Currency of Target

The CCLA’s are designed to allow participating companies maximum flexibility in meeting their commitments. Before committing to a target you have the option of choosing the units or "currency" against which your performance will be measured. There are four currency options:

  1. Absolute energy consumption
  2. Energy consumption relative to production
  3. Absolute CO2 emissions
  4. CO2 emissions relative to production

Energy units (e.g. kWh) are no doubt most familiar and may be appropriate in many circumstances. However, relative targets are based on "specific energy consumption" (SEC), measured in energy (or CO2) per tonne of production. The advantage of a relative target is that you have the opportunity of increasing your production levels and still meeting your SEC target ie the SEC target does not become a constraint on business growth. On the other hand, for businesses that anticipate a decline in output (measured in tonnes) over the next 10 years an absolute target will probably be more beneficial. (If you have a CCLA, which currency have you opted for? Is this in line with your long term business plans?)

Failing to Meet a Milestone Target

An individual facility qualifies for the Climate Change Levy discount by achieving the milestone targets. Failure to achieve a milestone target might cause you to lose your 80% discount for the next 2 year period. However, there are a number of ways in which you can avoid losing your discount even if you fail to meet the quantitative milestone target:

  1. If the sector misses its overall target, then only facilities that have met their individual target at the milestone will be re-certified.
  2. An important commercial opportunity is offered emissions trading - you may be able to purchase CO2 emission reduction "credits" that have been achieved by another company.
  3. There are certain risk management options that will be considered in mitigation if you have missed your target. These measures include a tolerance band and adjustments for changes in product mix and product output. To exercise the risk management measures you must show that you are making "best endeavours" to achieve your target.

Exceeding a Milestone Target

For operations in control of their energy utilisation (and those that have selected the most advantageous “currency”) there are real financial and commercial benefits to be reaped through Emissions Trading. This mechanism allows reductions in emissions to be transferred from one facility to another, rather than requiring each facility to make the same reduction. Thus, if a facility exceeds one of its milestone targets it may be possible to sell the benefits of the extra CO2 reduction to a facility that has failed to meet its target.

IPPC Facilities Meet Their Energy Requirements

It has been agreed with the Environment Agency that a facility that meets targets in a CCLA will be deemed to have met the IPPC energy efficiency requirements providing that the facility also undertakes certain "baseline activities".

Eligibility Rules

Eligibility for a CCLA depends on two main considerations:

  1. Whether the facility has processes that could be covered by the Integrated Pollution Prevention and Control (IPPC) Directive. Only such facilities are permitted to join a CCLA and claim the 80% discount.
  2. What proportion of the energy used at an eligible facility used directly in an IPPC process or a process that is "technically linked" to such a process. Energy used in non-IPPC activities might not be eligible for the 80% discount.

Climate Change Levy discount is not available for energy use in the following areas:

  • stand alone cold stores (stand alone means on a facility without an eligible manufacturing process)
  • stand alone depots
  • stand alone packaging plants
  • non-IPPC related facilities
  • forklift trucks
  • R&D facilities (but, pilot plants should be eligible)
  • offices.

Next month Andy will explore the Qualitative Requirements for creating an energy efficient operation. If you want to discuss any of these points further with Andy, you can do so by emailing him at : andy@pickersgill1.freeserve.co.uk

Andy Pickersgill - 02/12/05
English Language Skills In The Workplace

An article from FMF members - Meeson Training & Development

The government is currently placing considerable emphasis on the training and development of 19 to 25 year old's, and within this overarching focus, particular emphasis on so-called essential skills of numeracy, and command of the English language. This is mainly to play “catch” from the failures of the school system.

The Food Industry plays a significant part in the development of English language skills, but not so much as an employer of the 19+age group, but rather, as a very significant employer of foreign, ‘overseas’ nationals.

To quote, with permission, some of the findings from recent research undertaken by Improve, the Sector Skills Council for the Food and Drink Industry:-

Of the some 650,000 employed in the food and drink industry, over 100,000 are overseas nationals. This group are split, roughly, into thirds:- in manual roles, semi-skilled roles, and management and supervision. This substantially over-represents them in management and supervision, and highlights how key overseas nationals are becoming vital to food manufacturing in Britain today.

The majority of foreign nationals are from the Eastern European accession states, and the majority might profess a wish to ‘return home’ one day, but 95% have permanent jobs, so it’s no-time soon! 25% are graduate or equivalent qualified. Very interestingly, over 50% of employers in Food and Drink employ overseas nationals, and, the bigger the company, the higher the proportion of their workforce, will be from this grouping.

What are the implications of the presence of this mobile, educated, first generation immigrant influx?

Most are people from countries with strong cultural identities, strong enough indeed to have withstood occupation, and political domination for years, to now emerge and claim their freedom. Equally, speaking of the majority of those from Eastern Europe, they have been extensively exposed to the English language dominated mass media of popular culture and to the powerful influence of American commerce.

Experience shows, that the great majority who arrive, have more than ‘mere notions’ of the English language. Indeed, this is even the case for those who have come from further afield than Eastern Europe – those from the Middle East for instance.

So, how are the development needs in language skills of these immigrant workers catered for?

There is both public and private provision, aimed at building on the existing familiarity with English, brought here along with the suitcase.

Colleges of Further Education run formal courses to develop English skills, typically one or two days a week, for one or two years. These courses are free to those on benefits albeit that many immigrants from outside the accession states, did not initially have the right to work in the UK, for up to two years.

Colleges such as Telford College of Arts and Technology run a ‘drop-in’ centre, staffed by FE tutors. The Telford centre attracts learners from over 40 Telford businesses, and for the determined and self-motivated, is a fine public provision of English language skill development. Many FE colleges will provide similar facilities. Certainly there is a motivation to make the hours available flexible to fit within industrial work patterns, and there is an appreciation that the teaching, in a town like Telford, needs to accommodate the requirements of manufacturing.

Originating from the Government, but delivered privately, Learning Direct which provides courses over the Internet, has a suite of language development tools designed to assess the level of a candidate’s English skills, and then to develop those skills using games, interactive exercises and study tools. These mirror and support the National Curriculum for ESOL (English for Speakers of Other Languages.)

A critique of all class-room based, multi-attendees provision, is that it is quite possible to emerge from such courses, still unable to speak (understand, read, maybe even write, but not speak English).

To help remedy this and other deficits, specialist providers such as my business, Meeson Training and Development, offer some ‘bespoke’ provision of English language coaching. Combining the use of Learning Direct tools, and operating out of the Telford Learning Zone, the Learning Direct centre in Telford, the power of this kind of intervention is that it simulates the immersion by which we all learned our mother-tongue - how we all develop very advanced comprehension and expression, long before we can read or write.

There is of course a clear value for money equation here. The productivity gains reaped when a key employee rapidly improves their powers of natural expression (for fault finding, problem analysis and participation in root-cause analysis) as a result of bespoke coaching must be balanced against the option of a ‘free’ FE college course.

Britain has been enriched by immigrants for all of our history, Celts, Romans, Angles, Vikings, Normans, Jews, Huguenots, Revolutionary Emigres from France, Italians and Poles, Hong Kong Chinese, Afro-Caribbeans, Pakistanis, Indians, Ugandan Asians, Afghans and Kurds, and now, Slavs and those from the Baltic. Yet, we still speak a dialect of a language that stems from Lower Holland, and came to these shores over 1500 years ago.

Soon the government will make a level of competence with English, mandatory for those wishing to settle here. To me, enlightened self-interest dictates that to get the most and best from every employee, whose capacity to communicate confidently and competently, in the medium of the majority culture, is key.

Our efforts expended and money invested, to promote this aim are never wasted.

Tim Nelson runs his own business Meeson Training and Development. Tim also lectures at Telford College of Arts and Technology and is a member of the Food Manufacturing Forum.

Tim Nelson - 02/12/05
NEW LOWER Fees

Annual memebership from just £50 for 2006

Thanks to the support of all our members in 2005, we have completed a successful first year of activities despite limited financial resources. The reputation that we have built has, subject to confirmation, enabled us to secure some external funding (through Advantage West Midlands) for the next two years ahead.

One consequence of this funding is that it enables us to offer membership for 2006 on a lower cost profile and we have decided to base the new fees on the size of the member businesses (in part to encourage more SME food businesses to participate).

The new fee structure is banded to the number of employees in the business as follows:

Number EmployedAnnual Fee
1 - 20£50
21 - 50£75
51 - 100£100
101 - 250£150
250 - 500£200
501+£250
We believe that this will really put the Food Manufacturing Forum on a firm footing for growth and development which will be to the benefit of all our members and prove an irresistible opportunity to new members both large small.

Current members include both large and small businesses across all sub-sectors of food manufacturing and associated support businesses.

Benefits include:
  • up to the minute presentations on topics of common interest across food manufacturing in the West Midlands
  • superb networking opportunities enabling you to interact with other like-minded business people across the region
  • access to a monthly Newsletter and other supporting sources of information designed to provide local support to busy professionals operating in the food manufacturing sector
  • access to other sector specific knowledge transfer channels at preferential rates
  • If you are not currently a member but you would like to know more about joining please contact us at:

    admin@food-manufacturing-forum.com

    Carl Kovacs - 01/12/05
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