letter to John Hutton MP about Pertemps and their New Deal contract compliance

                                                                                                           

                                                                                                            21/09/06

 

Dear Sir,

            I am taking part on the New Deal 25+ program provided by Pertemps People Development Group (PPDG) in Kidderminster.

Throughout the 10 weeks that I have been there I have become very interested in the terms under which they are undertaking business. Unfortunately I am at a disadvantage because so far I have been unable to find a copy of the contract between the Department for Work and Pensions and Pertemps People Development Group Ltd. Something that I have been able to find is the terms and conditions under which new deal providers are to conduct business. You may or not be familiar with these, but here are extracts from them in case you need reminding of their obligations.

 

PART 7 – WARRANTIES AND LIABILITY

13      Warranties

13.1The Provider warrants and represents to Jobcentre Plus that:

13.1.1          any goods supplied by the Provider pursuant to the delivery of any part of the Programme(s) shall be of satisfactory quality and fit for their purpose and shall be free from defects in design, material and workmanship [and that any software and/or firmware supplied by it and/or used by it to provide the Programme will be Euro Compliant;

In other words, if the provider doesn’t comply with the above, they are breaching the contract. It is the duty of the DWP to undertake quality control and to ensure that the terms of the contract and needs of New Deal clients are met. The following information about default might be useful if you need a reminder.

 

PART 8 – REMEDIES

14      Provider Default

14.1    The Parties acknowledge and agree that the Programme(s) is/are to be provided in the spirit of co-operation. Each Party shall do all things reasonably necessary to co-operate, aid and assist the other in its performance of its obligations under this Contract.

14.2For the purposes of this Clause Error! Reference source not found. the following terms shall have the meanings set out below:

14.2.1              “Minor Breach” shall mean a delay or non-performance by the Provider of its obligations hereunder which does not materially, adversely and substantially affect the performance or delivery of the Programme;

14.2.2              “Serious Breach” shall mean

14.2.2.1        any breach or a series of Minor Breaches by the Provider of its obligations hereunder which adversely, materially and substantially affects the performance or delivery of the Programme(s) (or adversely affects the health and safety of staff or Participants); or

14.2.2.2     a Minor Breach of a specific obligation in respect of which Jobcentre Plus has served two consecutive Notices under Clause 14.4.1 concerning the same or similar circumstances from where the Provider has failed to remedy that breach under Clause 14.4.2. 

14.3           Any one instance of failure by the Provider to meet any general or specific performance targets set pursuant to Clause Error! Reference source not found. shall constitute Minor Breach whilst repeated or continual failure to meet such performance targets shall constitute Serious Breach.

14.4           In the event of a Minor Breach Jobcentre Plus will adopt the following procedure:

14.4.1       Jobcentre Plus shall serve notice on the Provider via the Provider Manager specifying that it is a formal warning notice and giving reasonable details of the breach sufficient for the Provider to identify the breach;

14.4.2       within 5 Working Days of receipt of notification under Clause 14.4.1 above, the Provider Manager shall meet with the Contract Manager to discuss why the breach has occurred and how it will be remedied. The Provider shall have a reasonable period (such period to be agreed, and in the absence of agreement to be no longer than 28 days) following such meeting to remedy the breach. Notwithstanding any other remedy under this Contract Jobcentre Plus shall be entitled to require the Provider to promptly re-perform or replace the relevant part of the Programme without additional charge to Jobcentre Plus.

14.5           In the event of a Serious Breach, the Parties shall adopt the following procedure:

14.5.1       Jobcentre Plus shall serve written notice on the Provider via the Provider Manager giving reasonable details of the breach sufficient for the Provider to identify the breach and requiring the Provider Manager to meet with the Contract Manager forthwith;

14.5.2       upon receiving notification under Clause 14.5.1 above, the Provider Manager shall meet with the Contract Manager forthwith to determine and agree in good faith and acting reasonably whether a contingency plan is available to deal with the Serious Breach. In the event that a contingency plan is activated, the Provider shall reimburse Jobcentre Plus in respect of any costs incurred by Jobcentre Plus in activating the same (as set out in the contingency plan) provided that Jobcentre Plus shall do all things to mitigate such costs including by using the resources of the Provider as appropriate. In the event that a contingency plan is not available the Provider shall within 5 Working Days (i) provide to Jobcentre Plus a plan that, to Jobcentre Plus' reasonable satisfaction, will when implemented resolve the breach; or (ii) remedy the breach itself;

14.5.3       In the event that (i) the Provider fails to meet any required action in a contingency plan or (ii) in the event that a contingency plan is not available and the Provider does not present a satisfactory alternative plan Clause Error! Reference source not found. shall apply and/or at any time thereafter Jobcentre Plus shall be entitled, at its discretion, to serve 28 days notice on the Provider of its intention to terminate the relevant Programme in respect of which the aforesaid breach has occurred or to terminate the Contract as a whole.

Although I haven’t seen your (you are Secretary of State for DWP, which I think means you’re the boss, right?) contract with PPDG, I imagine there are some similarities in core elements between those of different providers across the UK. This could be wild speculation, but is there a possibility that your contract bears a resemblance to this one that I found from another provider?

 

PART A

 

DETAILED SPECIFICATION(S) FOR:

 

 

DISTRICT:

 

Anonymous

 

ANTICIPATED CONTRACT COMMENCEMENT DATE:

 

3 APRIL 2006

Provision Name:

GATEWAY TO WORK &

NEW DEAL OCCUPATIONAL SECTOR TRAINING

 

NEW DEAL FOR YOUNG PEOPLE (NDYP)

·        GATEWAY TO WORK (GtW)

·        FULL TIME AND EDUCATION TRAINING   (FTET)

·        VOLUNTARY SECTOR (VS)

·        ENVIRONMENT TASK FORCE (ETF)

 

NEW DEAL 25+ (ND25+)

·        INTENSIVE ACTIVITY PERIOD (IAP)

 

 

Main Aims & Objectives:

 

The overarching aim of the Provision is to enable participants to acquire the Life Skills, Knowledge and Motivation via an initial 2-week Gateway to Work course, to immediately increase the prospects of gaining a job.

 

Following the Gateway period, if the participant has still not acquired a job, they will attend a New Deal option, which will build on GtW course and further equip participants with skills, knowledge and motivation to enable them to successfully secure and retain a job.

 

The outcome will be, participants are able to demonstrate to potential employers that they are capable of undertaking and sustaining paid work.

 

The Prime Provider will deliver and or source via highly skilled and motivated sub-contractors a two week Gateway to Work Course in line with Jobcentre Plus National Specification that will:

 

·        Increase the numbers of participants moving from the Gateway into jobs, and improve the immediate job prospects of all other participants;

 

·        Increase employability by developing effective workplace behaviours, attitudes and soft skills i.e. the qualities, attitudes and behaviours employers look for in potential recruits;

 

·        Enable participants who do not find jobs to be better prepared to make an appropriate choice of New Deal Options/Intensive Activity period (IAP);

 

Better prepare them to benefit to the maximum extent from the New Deal option/IAP once they take it up

 

The Prime Provider will deliver or source, via sub-contractors, sector based training and qualifications that will

 

·        meet the ongoing recruitment needs of local employers and respond to new developments in the labour market,

 

·        move participants into employment as quickly as possible

 

·        work extensively with a wide range of employers to develop employer led courses and routeways

 

·        equip participants by working extensively with them to achieve the necessary soft and personal skills required to gain and sustain employment

 

·        ensure a range of tailored quality work placements across all occupational sectors are available to all participants.

 

Because of the geography and variety of occupational areas encompassed within ************ District, innovative delivery of service will be required.

 

Occupational Sectors

 

Provision is required to cover the following occupational sectors: –

Retail & Customer Service (includes warehousing & fork lift)

Hospitality

Manufacturing

Engineering (including engineering IT)

Transport

Business & Finance (including general IT)

Public Sector

Health Care (including Childcare -Nursery, Childminding and Pre School )

Leisure, Sport & Tourism

Construction

Agriculture

Management and Professional

Media & Design

Hair & Beauty

 

We also require miscellaneous provision, not specifically listed, to be sourced on an ad-hoc basis to meet sector specific employer led demands, addressing   identified skill shortages and responding to new developments in the labour market.

 

Participant Groups / Eligibility:

 

Please give some local labour market background information on the either the District or location of the provision

 

Customer Groups

·        NDYP  (GtW, FTET,VS and ESF)

·        ND25+ (IAP)

·        All other eligible New Deal Participants

 

Some participants for whom English is not their first language may require additional support.

Some customers may be eligible for early entry.

 

 

Performance

 

Essential

Added value

Performance Target:

50% of all leavers from Gateway to Work Course will move directly into employment

 

60% of all leavers from Full Time Education and Training(FTET), Voluntary Sector, Environment Task Force and IAP  will  move directly into employment

 

75% of all FTET & IAP Training participants will achieve a qualification as agreed by New Deal Personal Advisor via an Individual Learning Plan

 

80% of all those gaining employment will be sustained in  employment for a period of at least 13 weeks

 

 

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If it is, I have major concerns regarding whether they are meeting both the requirements of the contract and the needs of both myself and other New Deal clients. Default appears to have already taken place.

There is supposed to be a wide range of quality work placements across all occupational sectors available to all participants? Nothing remotely resembling this has happened during the time I have been on the course. I consider myself to be a very versatile person and as such I have provided PPDG Kidderminster with a variety of occupational areas in which to place me. They have failed. In practice, if you do not want to undertake a placement at a charity called the Network Worcestershire, or accept one there for some time but then find it to be unsuitable, you end up being in a situation where you are allocated to do job search at the PPDG Kidderminster office 5 days per week, something that I have been doing myself for 3 weeks. Job search is something that you have to do in order to obtain Jobseeker’s Allowance anyway without paying PPDG to provide an office with a pitifully inadequate number of computers in which to do it. The purpose of going into the office is to provide the necessary paperwork for PPDG when auditing takes place to secure their payments, not my training provision. Perhaps this in itself represents another incident of default?

Today I have been offered a work placement at the PPDG Kidderminster office itself. I assume this was an act of last resort i.e. an open admission that the company is unable to provide quality and diversity of placements with employers by having to arrange a placement in its own office. I have accepted this, even though it is not among the work assignments I requested. However, I once again consider this to be a possible act of default by PPDG.

When I attempted to discuss the subject with staff member Keeley, she said to me “I’m not going to argue with you about it”. Why does she consider someone who shows an interest in what they are doing and therefore asks salient questions to be attempting to “argue”? She displayed a very aggressive and negative attitude towards me, and seems to either lack the ability or willingness to engage in conversation, which has a detrimental effect on her capabilities at fulfilling her role.

Is the situation really one where the New Deal provider is in fact unable to provide suitable work placements and training for clients on the course? If it is, how did they obtain a contract to provide work that they cannot deliver? How can such an allocation of public money be justified? You might like to chat to Colin Birchall about that because I will be asking him the same questions.

Besides the fact that the New Deal programme I am being provided with at the taxpayer’s expense doesn’t appear to be fit for its purpose, there are other ways in which I am disadvantaged by being placed on it.  For example, I am interested in becoming an Electrician. Conveniently, I can study for the necessary qualifications at several local colleges.  These colleges waive the fees, which are very expensive and completely out of my reach, for unemployed candidates. Unfortunately, I no longer qualify as I am not strictly speaking unemployed whilst on the New Deal program.  Of course that definition is highly inaccurate, according to my own criteria I am very much unemployed.  Do you think that is an effective use of public money to pay for me to miss the opportunity to obtain genuinely useful vocational qualifications? If you do, please respond to me explaining why. I have been put into a position whereby instead of being two weeks into qualifying to be an Electrician, I must wait until the next course starts.

I have been informed by staff at PPDG Kidderminster that this course is costing the taxpayer £3900 per person per 13 weeks. I have been unable to verify that this is accurate via any documentation, but I am happy to assume that it is correct in its absence.  That is approximately double what I receive annually in Jobseeker’s Allowance. Do you think that is perhaps a little unbalanced? I have contract with you too, known as the Jobseeker’s Agreement, the terms of which I have met. Is my reward for meeting those terms really to be paid a fraction of what PPDG are paid?

I am also in the process of writing to Colin Birchall, the Chief Executive of PPDG about my observations and experiences. May I be provided with, or directed to where I can obtain, a copy of the contract under which PPDG are operating as a New Deal 25+ provider in Kidderminster, please? I have made the assumption, rightly or wrongly, that this is public domain information. If it isn’t please, respond with a detailed explanation of why important information regarding the use of public money is being withheld.

 

Yours faithfully,