Redundancy Business Case

Statement of Intent:

EFC values its members of staff and is committed to the provision of job security and continuity
of employment. This is central to an environment that encourages teaching and professional,
administrative and technical support that is so vital to our work. However, as a result of
changes in external funding, technological development, changes in organisational
requirements, reduced student demand, or other reasons, it is recognised that a redundancy
situation may arise as staffing requirements change. When such situations arise, the College
will endeavour to manage these challenges fairly, equitably and in the best interests of the
College in the effective operation of its services. The College will seek to take steps to mitigate
the impact of redundancy where practicable through the fair and consistent application of
EFC’s redundancy policy.

Staff under notice will have the right to a reasonable amount of time off to seek other work,
attend interviews or undertake training.

1) Explanation for the potential redundancy situation

The College faces significant financial challenges. The College is in inadequate financial
health and is projected to incur a deficit of £2.524 million in 2017/18 on a turnover of £9.700
million. The College has received a Notice of Concern for Financial Health from the Education
& Skills Funding Agency (ESFA); this has required the College to submit a Financial Recovery
Plan to the ESFA which demonstrates how it will move back to at least satisfactory financial
health. Progress on implementing the Financial Recovery Plan is monitored closely and
regularly by the ESFA. In the short term the College has had to seek Exceptional Financial
Support from the ESFA in March 2018 in order to be able to pay staff and suppliers.

The College has suffered a loss of £2.7 million income between 2016/17 and 2017/18 mainly
due to under-recruitment of 16-19 year olds, the inability to recruit new apprenticeships due to
the Ofsted Grade 4 for apprentice provision and under-recruitment to adult level 3 (Advanced
Learner loan funded) provision. The College faces a further reduction of £400k income in
2018/19 as apprenticeship income continues to fall and contracts for 14-16 provision have not
been renewed.

Total income in 2018/19 is projected to be £9.278 million. This is a realistic projection based
on the College’s course offer and ability to recruit. The College’s cost base has not yet been
reduced to align with the lower income. Expenditure in 2017/18 will be £12.224 million.
Broadly therefore the College needs to cut its cost base by £3 million (25% of 2017/18 costs)
in order to be able to set a balanced budget in 2018/19. This is the minimal requirement to
move the College back to satisfactory financial health and to have sufficient cash to be able to
pay staff and suppliers. This is a significant challenge to the College and will require some
radical action.

The College is minimising the scale of redundancies by seeking cost savings in areas other
than permanent staffing. The following table sets out how the £3 million cost reduction is to be
secured. 49% of the savings will arise from reductions in staffing costs even though staff costs
represent over 60% of all College spend. Within the staff savings less than half result from
restructuring of permanent staff, with the balance arising from the ending/reduction of agency,
hourly paid and fixed term contracts and from not filling vacancies which have arisen during
2017/18.

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The restructuring proposals have been divided into two phases. The proposals in this
document relate to teaching and learning support areas and will save £664k. A second round
of restructuring affecting business support services, intending to save £137k, will be
announced later in the year. These are dependent on the progress of merger discussions with
New City College. Assuming the merger progresses as planned then it is likely that business
support areas will be the first to be restructured and integrated into the merged College; it
would be premature therefore to make proposals now for their restructuring.

The proposals for teaching and learning support restructuring can though proceed now as
these would be unaffected by the merger. Whether the College merges as planned or not, it is
necessary for the curriculum to be managed and delivered efficiently and within the income
available to the College.

Proposals to save c £3 million:

£000s £000s % of total

saving
Staffing
Restructuring 664 22%
Restructuring (deferred) 137 5%
New posts (86)
Full year effect of staff savings 474
already made in 2017/18
Agency and hourly paid staff 281 1,470 49%

Restructuring provision 400 14%

Bank interest 158 5%

Non-staff
Consultancy/legal 322
Estates 234
Franchise 250
Other 138 944 32%

TOTAL 2972 100%

2) Details of the number of employees affected, their job titles and grades

Number of
Employees Proposed
Department affected FTE Reduction New Posts
Director of Learning 3 1.00
Lecturing Staff 22 5.20 1.80
Learner Support 29 8.60
Business Support 11 5.16 1.00

Totals 65 19.96 2.80

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3) Provide details of the number of employees employed within the management area
concerned

FTE FTE of affected No of affected

Reduction Staff Staff
TEACHER REDUNDANCY POOLS
Art & Design 1.00 3.82 8
Photography 1.00 1.80 2
Media 1.00 2.80 3
Performing Arts 0.40 2.80 3
Construction (multi-skills) 0.80 0.80 1
Maths 1.00 4.30 5
Sub Total 5.20 16.32 22

MANAGEMENT REDUNDANCY POOL

Curriculum Director 1.00 3.00 3
Sub Total 1.00 3.00 3

LEARNER SUPPORT REDUNDANCY POOLS

Art & Design technician 1.00 2.56 3
Performing Arts/Media technician 1.00 2.00 2
Hair technician 0.33
1.66 2
Beauty technician 0.33
Hair & Beauty receptionists 0.59 0.59 2
Construction technician 0.40 0.80 1
Learning Support coordinator 0.71 2.82 4
Student Engagement Officers 1.46 3.86 5
Learning & teaching coaches 1.30 3.30 6
One Stop Advisers 1.48 3.48 4
Sub Total 8.60 21.07 29

BUSINESS SUPPORT REDUNDANCY POOLS

Curriculum and Executive admin 3.16 7.16 9
BDU (Forest Biz) 2.00 2.00 2
Sub Total 5.16 9.16 11

TOTAL REDUCTIONS 19.96 49.55 65

NEW POSTS
H&SC lecturers (1.80)
BDU Work placement officer (0.50)
BDU Schools liaison officer (0.50)
Sub Total (2.80)
TOTAL NET REDUCTION 17.16

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The following paragraphs summarise the key elements of the proposed restructurings

Teaching staff

The College has reviewed its curriculum plan and strategy in order to ensure there is a
curriculum offer which enables the College to meet its income targets and allocations
efficiently. The curriculum plan was reviewed based on current and historic student numbers,
applications, application trends, the need for an average group size of 18, LEP and employer
priorities, and expanding full cost and adult provision.

This detailed planning work has resulted in a reduction in programmes in art & design,
photography, media, performing arts, construction multi-skills and maths. There are now fewer
teaching hours required compared to the number of teaching hours available from existing staff
in these areas and there needs to be a reduction in staffing off 5.2 FTE.

There is growth in Health & Social Care provision requiring an additional 1.8 FTE teaching staff.

Management staff

It is proposed to reduce the number of Curriculum Director posts from the current 4 FTE (of
which one is now vacant) to 2 FTE. The 2 posts will oversee curriculum and quality improvement
activity. No reduction in the number of Learning Leaders is proposed.

Learner Support staff

Technicians – a reduction of 3.06 FTE technicians is proposed in art & design, media, performing
arts, hair and beauty and construction. These are largely driven by reductions in student
numbers.

Hair & Beauty receptionists – these posts will be deleted. The duties will be undertaken by
technicians, teachers and students as part of their study programme.

Learning Support Coordinator – a reduction from four to three posts is proposed driven by
reduced learner numbers.

Student Engagement Team – a reduction from five to three posts is proposed. This reflects the
reduction in the number of students and the loss of the contract for 14-16 year old provision.

Learning and teaching coaches – the College has invested significantly in supporting the
improvement of teaching and learning through the coaching team. Much good practice is now
embedded and the support can be reduced to 1 learner coach per directorate.

One Stop Advisers – a reduction from 3.48 FTE to 2 FTE is proposed. This is driven by the need
to streamline processes and increase the use of on line systems in this area.

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Business Support Staff

Curriculum and Executive admin – it is proposed that the number of curriculum administrators,
curriculum co-ordinators and executive assistant posts is reduced from 7.16 FTE to 4 FTE, of
which one post will be a supervisor.

BDU – the volume of BDU workload is currently less than originally anticipated in 2017/18 due
to the failure of the Forest Biz commercial income initiative. The workload will decline further in
2018/19 due to the ongoing fall in apprenticeship numbers and reductions in sub-contracting.
There is also a need to meet new demands on BDU time notably to develop the College’s links
with local schools to secure enrolment targets and effectively manage work placements for
learners.

In response to these changes in BDU workload it is proposed to delete the two full time posts of
BDU Officer (Forest Biz). Two new 0.5 FTE posts will be created – BDU Work Placement officer
and BDU Schools Liaison officer.

4) What options and alternative employment opportunities are available to avoid

redundancies?

Where redundancies are proposed, consideration will first be given to some or all of the
following approaches at the relevant time, as appropriate to the situation:

 Natural wastage i.e. non replacement of leavers;

 Restrictions on recruitment, for example suspending recruitment where there are

similar roles within other Departments;

 Reduction or elimination of overtime;

 Consideration of flexible working arrangements.

 Reduced usage of sub contracted labour, agency workers and temporary employees
(unless they are necessary prior to a closure situation or for special projects where
specific skills or continuity are required);

 Provision of agreed reasonable training or re-training of staff members for

redeployment.

 A reduction in contractual working time either on a permanent basis or on a temporary

basis.

5) What redundancy benefits are offered by the College?

All redundancy payments are made within the parameters of Revenue and Customs (HMRC)
guidelines. Statutory redundancy pay calculations are based on average earnings of the 12
week period leading up to redundancy in accordance with the statutory cap. Currently, the first
£30k of any payment, excluding payment in lieu of notice, is tax free.

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 6) If a selection process is required, the proposed method of selection

In some cases, the pool will be restricted to one individual or a small/specific group of staff.
This may be for reasons related to specialisation.

Where the selection pool is restricted to one individual/teaching staff, staff may be
employed on a generic job description or the work is specialised and a wider pool would
not be appropriate.

Where there is a need for a selection process, the College utilises a number of different
options e.g. competitive interviewing or selection criteria see below for list of criteria below
which may include:

 skills and qualifications;

 specialist knowledge;

 work performance including effective administration and/or;

 aptitude for the work;

 lesson observations for lecturers

 student feedback for student facing roles;

 attendance;

The selection criteria will be applied to all the employees concerned in the pools affected
including anyone absent/on leave from work. Other forms of selection may include
competitive interviewing, testing or other forms of assessment. A record will be kept of the
selection process and outcomes provided to impacted staff.

7) Time-scale over which this planned reduction will take place (including any proposed
redundancy date)? This will normally be for a minimum of 30 days.

Due to the numbers of potential redundancies consultation will take a minimum of 30 days.
See likely time scales below.

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Consultation Arrangements

Timetable for proposed redundancies

Start of consultation period

Collective and Individual Consultation : Meetings 18 April 2018

with individuals affected
Collective Consultation: Meeting with unions 18 April 2018
Collective Consultation: Open meeting with staff 19 April 2018

NB. Further meetings with individuals and unions may be arranged upon request
during the consultation period
End of consultation period 25 May 2018
Minimum of 30 days from start date

Written response reporting the outcome of 04 June 2018

consultation sent to unions and staff.
Meeting with union upon request.

Option 1. Process for closure of a team/group of staff

All affected staff would be notified of their By 08 June 2018
selection for compulsory redundancy and advised
of the redundancy date.
Staff would be invited to attend an appeal w/c 11 June 2018
meeting if they wished to question their selection
for redundancy.

Notice given to staff according to individual From w/c 25 June 2018 depending
contractual periods. upon time involved in selection
process.

Option 2. Process for reducing number of staff within the selection pool to numbers
required
Start of the Selection Process to apply the criteria w/c 21 May 2018
against all staff affected and/or
Competitive interviews for remaining posts
available
Appeal meetings against selection for By 08 June 2018
redundancy
Notice given to staff according to individual From w/c 25 June 2018 depending
contractual periods upon time involved in selection
process.

Redeployment process for available and/or new posts within the College
Matching process and redeployment interviews Until last day of employment
arranged as appropriate during the notice period

Please note the timetable is for illustration and will require amendment after Board’s
consideration.

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