Annual Report 2019

Support. Grow. Succeed. Annual Report 2019

1 Highlights of the year 5 10 Managing the union 37

Rebranding ��6 Member Contact Centre ��37 Websites ��6 Data protection ��37 Brexit ��6 Employee salaries ��38 Heritage workers campaign for fair pay ��7 Prospect organisation chart – 31 December 2019 ��39 Women at ENO break equal pay barrier ��8 Schedule of investments at cost and market value ��40 Legal wins/successes ��8 11 Other organisations 43 Tech survey ��9 Charity partnerships ��9 Charities ��43 Gender pension gap ��9 Affiliations and linked organisations ��44 Environment �� 10 Natural England campaign �� 10 12 Pay deals 45 Keep Britain afloat campaign �� 10 2 Sector round-ups 11 13 NEC, officers and sub-committees 49

Bectu sector �� 11 National executive committee ��49 BT and digital divisions �� 13 Senior management team ��50 Energy sector �� 15 Trustees ��50 Public services �� 16 Auditors ��50 Appeals Committee ��50 3 Rights at work 19 Branch Rules Working Group ��50 Communications and campaigns ��50 Legal cases �� 19 Defence maritime and logistics group ��50 Personal Injury Scheme ��20 Electricity Supply Industry sub-committee ��50 Legal services ��20 Energy sector executive committee ��50 4 Health and safety 21 Equal opportunities �� 51 Finance and audit �� 51 Health and safety conference ��21 Health and safety �� 51 Nuclear development group – relaunched as the Nuclear 5 Education and skills 23 Development sub-committee from June 2019 �� 51 Organisation, recruitment and education (CORE) �� 51 Training for representatives ��23 Pensions �� 51 6 Equalities 27 Science, engineering and sustainability advisory committee ��52 Theatre Diversity Action Plan ��28 Retired members group national committee ��52 7 Benefits and services 29 14 Branches 53

Prospect Plus ��29 15 Finance 61 Bectu public liability insurance ��30 Prospect energy club ��30 Introduction �� 61 Lighthouse financial advice ��30 Future plans ��62 Other benefits offered by Prospect include: ��30 Risks ��62 Death benefit ��30 Prospect accounts 2019 ��63 Benevolent fund ��30 Statement of responsibilities of the National Executive Asbestos and respirable crystalline silica registers ��30 Committee ��64 Respirable crystalline silica register ��30 Report of the independent auditors to the members of Compensation Scheme for Radiation Linked Diseases ��31 Prospect ��64 1. Accounting policies ��70 8 Membership, recruitment and organisation 33 2. Judgements and key sources of estimation uncertainty ��72 Information to be provided to members under the Trade Union Week and Heart Unions Week ��33 Union and Labour Relations (Consolidation) Act 1992 Bectu sector ��34 (amended) ��83 Young professionals network ��34 Schedule of subscriptions, donations and affiliation fees ��84 Scotland ��34 Subscriptions ��34 9 Awards 35 Published by Prospect, April 2020 New Prospect House, 8 Leake Street,London SE1 7NN Distinguished service award (silver) ��35 Long service awards ��35 t 0300 600 1878 e [email protected]

Prospect annual report 2019 “We can look ahead positively, undaunted by our challenges, but knowing we must adapt to flourish”

Mike Clancy Prospect general secretary

Introduction

In 2019, we continued the pattern of sense to staff, representatives and future, and ensure we build a new growing our membership. Prospect commentators that we are doing generation of workplace activists increased its working membership something right, in a context where capable of supporting members.” by 2,292, which is an excellent most unions continue to struggle to In 2019 we continued to make that a performance. promote their value.” factor in all our work. We are now around 145,510 strong One union, two brands and we represent an impressive array Continual improvement In the past year, we successfully of occupations and workspaces. Unions must change as the experiences rebranded the union while cherishing and needs of members change. But This is the result of hard work by its heritage. We are starting to live they must also preserve their core representatives and staff – and the ‘one union, two brands’ – promoting values of fairness, diversity and the fact that our political stability, borne Prospect and Bectu, but striving capacity to speak truth to power. out of our independence, means we do for a single culture among staff, not dissipate energy on factionalism. representatives and members. We continued to think through how the union adapts and we have a We stay focused on what members I also said last year that we must build programme of continued improvement are asking us to achieve for them a union that is resilient and capable of underway based on investment in individually and collectively. navigating the waters ahead. systems and people. As I said last year: “Increasing “We will need to bring together the Our contact centre is now a key membership not only supports strengths of Prospect and Bectu, hub; we have looked carefully financial stability, but conveys a interpret and adapt them for the

Introduction – Prospect annual report 2019 • 3 at the member journey through Those are: I cite the work in the heritage sector the union and started work on a • climate change, where we have as an example of how targeted and significant investment in a new recognised the climate emergency sensible industrial action brought integrated database and relationship and we will seek to define and some gains for members. These management system. shape the Just Transition to a low- campaigns also highlighted the professionalism, but low pay, of these I make no apologies that such work carbon future members. is continual. Members face constant • the future of public services, where change so their union must also adapt the consequences of austerity are This is an ongoing campaign but one what it provides. really showing that we are committed to. I can cite • public service broadcasting, and many others but it reinforces my belief General election responding to the attacks on the that we can ‘help members get on, but BBC we can also help them get even’. Brexit framed the national mood and • regulation So as usual, I finish by thanking my discourse and our fears about a hard • employment rights colleagues for all their hard work in Brexit are well documented. • the future of capitalism the past year. I thank representatives for their incredible work as volunteers. December’s election was a watershed • delivering diverse and fair moment and has delivered a I have met many relatively new and workspaces. government that has historic younger representatives of late and antagonism to trade unions. Our work has been, and will be, this gives me confidence about our pivotal. future. While we will continue to lobby on the consequences of the government’s Fighting for fairness We can look ahead positively, stance on the forthcoming trade undaunted by our challenges, but negotiations – and the impact on I strongly believe our message of knowing we must adapt in order to employment rights and economic being the union for ‘ambition’ makes flourish. output – our main challenge lies in us distinct, but is also backed up by influencing the government, not just a willingness to fight where employer railing against it. behaviour justifies it.

We are now one of the largest Although we promote collaboration unions affiliated to the Trades Union and problem solving, we will oppose Prospect General Secretary Congress and we have to make our employers and we have the financial voice heard on the big issues. capacity and the will to do it. Follow Mike on Twitter – @mikeclancy1

4 • Prospect annual report 2019 – Introduction 1 Highlights of the year

Prospect’s campaigning work in 2019 Speakers at the encompassed a full range of topics, Natural England from major national issues to branch- Parliamentary level work and everything in between. event, l-r: Caroline Lucas MP, Brexit continued to dominate the year Garry Graham politically and Prospect was active in (Prospect DGS), campaigning: Sue Hayman MP, • for a migration system that works Kate Jennings for our members and the economy (RSPB) and David • for access to vital EU programmes Heaver (Prospect like Horizon and Creative Europe Natural England • and to maintain essential section chair) standards on the environment, regulation and workers’ rights.

Beyond Brexit, the union continued England branch’s campaign for better impressed by the dedication and to campaign on the environment, funding and conditions for public expertise of our members and reps, arguing for an expansion of low- sector environmental workers. see https://members.prospect.org. carbon energy generation, a Just uk/news/id/2019/00489. Transition for workers to new green We took this campaign to parliament jobs, and supporting our Natural where MPs from all parties were Prospect’s work on technology and

Highlights of the year – Prospect annual report 2019 • 5 the future of work stepped up again The design of the logo symbolises Websites in 2019, with a special appearance at a worker’s journey as it unfolds. In a the CogX AI festival in London and a world of portfolio careers, people face In October, we launched new public- wide range of research, media work many twists and turns throughout facing websites for Prospect and and political engagement to make their working lives. Bectu. The new sites were launched the argument for a greater voice for Both qualitative and quantitative as part of the rebrand process, and workers in shaping the impact that brought the Prospect and Bectu sites new tech will have on their work. research was undertaken with prospective members, current closer together, as per the rebrand. All of this continued alongside ongoing members, representatives and staff. The sites were built on Wordpress – the campaign work on public sector pay, most popular content management for new Fleet Solid Support ships to be The decision to roll out the new brand system on the web, which is more built in UK shipyards, or the fantastic was made by the national executive flexible and easier to use than the work being done to improve pay and committee, but was supported by a custom systems on which both sites conditions in the heritage sector. group which included senior Prospect were previously built. and Bectu representatives. The new sites aim to improve key user journeys, and further development will follow. Currently, the old sites remain as “members’ areas” with key functionality and database integration for now remaining untouched.

Over time, that functionality will be developed and improved as part of the new Wordpress sites. Data shows the new sites are performing better than their predecessors.

Brexit

Impact of Brexit survey

In January 2019, the union released the results of a survey which included Prospect presidential team join senior staff to celebrate a successful rebrand – the views of non-UK EU workers in the l-r: Ele Wade, vice-president; Neil Hope-Collins, deputy vice-president; Mike Clancy, UK. general secretary; Ann Jones, deputy-vice president; Andrew Pakes, director of The survey showed that two thirds communications and research; Nicola Duffy, head of organisational development; of our EU members had considered Craig Marshall, president; and Sue Ferns, senior deputy general secretary leaving the UK because of Brexit – mainly because of uncertainty as Expert advice and support came from to their status, coupled with feeling Rebranding both the Prospect communications unwelcome. department and brand consultancy Prospect rolled out a comprehensive Engine. Members in industries and sectors rebrand during the second half of like science and research, nuclear, 2019. This project aimed to give the The new brand encompasses new heritage, aviation, and broadcasting union a fresh and vibrant identity. logos for Prospect and Bectu as well and the arts, also expressed worry This was prompted by the need for a as a range of rebranded items and about funding, losing membership of common visual identity following the templates which can be found at EU agencies, and huge uncertainty merger with Bectu in 2017. https://prospect.org.uk/ambition/ about their ability to collaborate outside the UK post-Brexit. The new brand reflects the idea that In addition to the new visual identity, ambition is not the enemy of solidarity, making sure the union’s language is as The science and research sector is but rather solidarity is the platform clear, straightforward and inclusive as particularly at risk from Brexit. The on which ambitions can be built and possible was part of the project, and Office for National Statistics suggests fulfilled. This is reflected in the new is an area we will continue to work on that around 175,000 non-UK EEA strapline ‘The union for ambition’. in 2020. nationals work in this area.

6 • Prospect annual report 2019 – Highlights of the year Heritage workers at the Science Museum (left) and the Museum of London (below) take action

Even if a fraction of the 66% of The legal guide set out who had At the lowest end of the scale, SMG respondents who said they had to apply, who was eligible, what still did not pay the real living wage, in considered leaving the UK do so, we to do about family members and London or elsewhere. Other national will still have a significant shortfall in dependents, provided clarity on the museums do, including the Natural this sector. meaning of certain terms and also History Museum and the Victoria and about what would happen in the event Albert. Prospect said the findings suggested of a No Deal Brexit. that the government had not done It was not members’ intention to close enough to reassure business, research the museums, rather to highlight the institutions and EU nationals that Brexit Heritage workers concerns of staff and the valuable could be made to work for them. campaign for fair pay contribution that they make. The survey was carried out by email. Museum of London 6,203 members responded and 547 of Prospect members across the heritage those were EU citizens from outside sector took industrial action over pay Members at the Museum of London the UK. in 2019. undertook a half day strike on 24 October – again part of ongoing pay Settled status guide At the Science Museum Group, action after the museum imposed a Prospect and Thompsons launched a members took action short of strike 1.5% pay rise. legal guide to help EU citizens working including work-to-rule and the Workers in the Museum of London had in the UK navigate the process of withdrawal of goodwill from 24-29 reported difficulty paying for rent, applying for settled status. August. They subsequently went on mortgages, childcare, travel and even strike on 30 August and 23 October. Prospect and Bectu supported food. Their pay had been cut by 6% in their EU members by calling on the The action took place after SMG real terms since 2013. government to stop the £65 settled failed to come up with an improved The Museum claimed that by using status fee, which was subsequently offer after imposing a below-inflation performance pay (bonus scheme), the cancelled. However, the process for pay rise of 1.5% for most staff earlier pay increase would equal inflation. applying for settled status remains in the year – the latest in a series of complicated and is a barrier to below-inflation pay rises which have Prospect said employees shouldn’t EU workers feeling welcome and left workers across the sector with a have to qualify for a bonus just to keep remaining in the UK. 13% real terms pay cut since 2010. up with the cost of living.

Highlights of the year – Prospect annual report 2019 • 7 Museum of London Archaeology

Prospect members at Museum of London Archaeology (MOLA) took strike action on 11 December in the first of a series of one-day strikes in a dispute over pay.

Action short of a strike including work to rule also started on 11 December.

MOLA executive managers imposed a 2.5% pay award in June even though it had been rejected by union members.

The dispute also concerns a pay structure that MOLA executive management promised would be in place by April 2019. Museum of London Archaeology branch at their one-day strike in a dispute over pay An undertaking was given by management to settle a pay dispute in 2018 but they have broken this Olwen had resigned from the ONS. promise. Had the pay structure Legal wins/successes been in place as promised then staff The tribunal upheld Olwen’s claims of would have expected to receive a Prospect won several legal cases for direct and indirect sex discrimination progression rise in addition to a cost- members in 2019. Three of them are and found she had not been promoted of-living award. highlighted here, others are covered in for reasons related to her gender. ONS chapter three. was ordered to pay compensation.

Women at ENO break Sex discrimination case against The tribunal found that it was equal pay barrier the Office for National Statistics “reasonable to infer that the culture of the respondent is one where Prospect member, Olwen Renowden, advantage and favouritism to males Fifteen Bectu sector members at won her tribunal claim of sex is not recognised as potentially the English National Opera (ENO) discrimination after she was denied discriminatory”. benefited from a negotiated pay review promotion. to remedy an equal pay problem. Olwen worked as a Grade 7 economist Member unfairly dismissed Union members had raised concerns for the Office for National Statistics for a minor issue about unequal pay among the (ONS). A security officer employed by technical staff employed by the ENO. In February 2017, two senior jobs were Interserve and based at BBC New The predominantly female workers advertised at the higher Grade 6. Broadcasting House won his unfair in the costume, wardrobe and wigs Olwen had previously worked at this dismissal claim. departments found they were being level and had an impressive career Bectu sector member Oluwagbemi paid less than colleagues in other history. However, she was rejected Ogundolie, had worked for Interserve technical roles like props, sound and for both posts without even being for 12 years when he was dismissed for lighting departments. interviewed. The two successful failing to report an incident. He was candidates were male. ONS then A detailed job evaluation study and covering for a colleague at the front appointed a third man to another pay audit showed that many jobs, desk, when an unauthorised individual Grade 6 economist job without mostly undertaken by women, had was escorted out of the building by a advertising the post. been historically undervalued. The member of staff. union said this was a classic case of Olwen noted that there were more Oluwagbemi assumed that the equal pay for work of equal value. than 114 economists in Grade 6, but incident would be reported by one there were no women. As a result, all salaries in costume, of his colleagues for whom this was wardrobes and wigs were brought Her case was heard at the Cardiff their main role and so did not report it into line with those in other technical employment tribunal in January 2019. himself. It later transpired that it had departments. By the time the tribunal took place indeed been reported.

8 • Prospect annual report 2019 – Highlights of the year During the investigation process, Oluwagbemi apologised and said he would handle things differently should such a situation arise again. Despite this, Interserve decided to dismiss him for gross misconduct.

The case was heard at the London Central Employment Tribunal in October 2019. The employment judge found that the dismissal was unfair. He said the nature of the allegation was minor and that there was no requirement for every security officer to report the breach. Therefore, the judge found Oluwagbemi’s actions did not constitute gross misconduct and the dismissal was unfair. Prospect staff at New Prospect House collected food for their nearest food bank in Successful challenge to Lambeth. The donations were delivered by Member Contact Centre staff – discriminatory performance marks (l-r) Aiden Gilbert, Gordon Calliste, Chloe Hawkridge and Jessica Crowhurst Six Prospect members successfully settled discrimination claims against the MOD, through Judicial Mediation. or involve them in decisions about • the opportunities for tech workers The cases arose from unfair the introduction of new tech in the in being a member of a union performance assessments. workplace. • and the importance of involving workers in the implementation of The members all believed that they Almost one in six (58%) were not tech and AI within the workplace. had been marked unfairly in their confident they would be involved (24% Taking your workforce with you will 2017/18 performance appraisals and were not very confident, 34% were not be of significant mutual benefit. that this had a detrimental effect on at all confident). their pay. Part time, disabled, and Prospect called on the government older workers were disproportionately Charity partnerships to involve unions and worker receiving lower marks. They sought representatives in its work around advice from Prospect, who presented Prospect set up partnerships with two Artificial Intelligence and new claims of indirect discrimination to the charities in 2019 – the Trussell Trust technology. Employment Tribunal. and War Child. See chapter 11 for The union believes that ministers more information. After the tribunal claims were lodged the members, supported by Prospect, have overlooked workers in a range of won their internal appeals against their national initiatives set up to ensure that Gender pension gap markings. They all received improved the development of new technology and markings and performance pay. automation helps at work. Prospect continued its work on the gender pension gap in 2019, including The six tribunal claims were then There are no union or worker an updated report and a leaflet considered at a Judicial Mediation representatives on the board of the with information and guidance for hearing, which is offered by the Centre for Data Ethics and Innovation members to help improve outcomes tribunal service as a means of or the recently announced AI Council. and awareness of the need for action. resolving claims. The members all Mike Clancy, Prospect general received additional compensation for Other activity included: secretary, talked about the role of injury to feelings. unions and workers in tech when he Research on the gender pension gap was the first trade union leader to broken down by nations and regions Tech survey address AI conference CogX in June. which led to further press coverage.

Exclusive polling carried out for He talked about: Motions to the TUC and the Women’s Prospect by YouGov showed that • the opportunities for tech TUC. just 34% of employees are confident companies in involving unions in • A letter to the Equality and Human that their employer will consult them their planning Rights Commission asking them

Highlights of the year – Prospect annual report 2019 • 9 to investigate the Department for It asked branches and members to Members called for: Work and Pension’s failure to meet consider: • Natural England’s wide and its public sector duty to promote • organising a branch discussion or important remit for people and equality in relation to pension event – for instance a lunch and nature to be properly recognised and income. learn or a talk funded • In August, the union produced a • using Prospect materials to support • its autonomy as a non-departmental second report with an updated a debate about what members can public body to be meaningfully estimate of the gender pension gap do locally or at work restored for 2017/18. • supporting local community events • the damage caused by pay restraint • The union also launched a petition • sharing our social media posts to be reversed and pay progression, alongside the updated report highlighting the work our based on skills and competency, to calling on government to report to members carry out and our be restored Parliament annually about the level support for action on climate • pay parity with the rest of the of the gender pension gap and its change Department for the Environment, plans for tackling it. This reached • electing an environmental rep for Food and Rural Affairs, to no longer 4,169 signatures before closing their branch and getting involved be covered by the civil service pay due to the December 2019 general in the Prospect Environment guidance and to be subject to an election. Network. independent pay review body. Environment Visit https://prospect.org.uk/get- Download the campaign report and involved/climate-crisis/ find out more at https://prospect.org. uk/natural-england-c2019/ Climate emergency Natural England Prospect’s national executive Keep Britain afloat committee recognised the climate campaign emergency and committed to an campaign action plan to raise awareness among Prospect members in Natural England members, support workplace change launched a campaign to highlight the Engineering and shipbuilding unions and reduce the union’s own carbon threats facing their organisation and launched a campaign to save 40,000 footprint. the valuable work shipbuilding jobs being put it does. at risk by the government’s Prospect has a unique insight because decision to put naval we represent members across They called contracts out to international the science, engineering and the for Natural competition. environmental workforces, alongside England’s wide members in the energy and transport and important The campaign, called Keep sectors. remit for people Britain Afloat, called on the and nature to government to build three Members in public services are among be properly new auxiliary Fleet Solid the world’s leading climate scientists recognised and Support ships (FSS) worth and conservationists. Our members funded. This is £1.5bn in the UK. in renewables, nuclear and the energy the only way to: supply networks understand both the The government says EU rules • restore and need for investment in low-carbon mean the ships, which are enhance energy and a Just Transition, so that intended to support British the wider no workers or communities are left aircraft carriers at sea, must countryside behind by the switch to a new green be put out to international and the economy. tender. marine environment Our Bectu sector members in the • help species to recover A consortium of commercial British creative industries have worked on • achieve favourable condition of shipbuilders is being forced to Blue Planet and other film, TV and protected sites compete with shipyards from South Korea, Japan, Spain and Italy. theatre productions which illustrate • improve access to, and enjoyment of, what is at stake. our wonderful natural environment However, the French Navy recently The union actively encouraged mem- • ensure that the government’s 25- announced a €1.7bn contract to build bers to get involved and take action year environment plan has a chance four support ships in France without together to tackle the climate crisis. of success. competition.

10 • Prospect annual report 2019 – Highlights of the year 2 Sector round-ups

Dignity at Work is a Bectu sector- Bectu sector wide campaign that is relevant for employees, workers and freelancers. 2019 was a period of transition for the Bectu sector following the retirement Work is ongoing to develop the of the deputy general secretary (and strands of the campaign and provide previous general secretary) Gerry resources for representatives and Morrissey. Philippa Childs replaced members. him as deputy general secretary at the Arts and Entertainment turn of the year. Throughout 2019, the Arts and Bectu’s sector conference took place Entertainment (A&E) division secured in May 2019 in Brighton and Ann Jones pay claims underpinned by the was returned as the sector president Real Living Wage for a number of for a further two-year term. The campaign involves five strands of independent theatres across the UK. Dignity at Work campaign work: The renegotiation of the UK Theatres/ In November, the sector launched its • bullying and harassment Bectu agreement stalled due to the flagship ‘Dignity at Work’ campaign • quality of working life National Living Wage overtaking designed to set the standards • equality and diversity the minimum rates in the agreement. expected for employers and engagers • talking terms, and However, discussions are back on track across the creative industries. with a proposal for a minimum terms • sticking together.

Sector round-ups – Prospect annual report 2019 • 11 template house agreement being ITV, in particular, has seen its considered. profits hit after peaking at £885m in 2016. This dropped to £810m The Live Events network was launched within two years. That decline is which raised our profile across this likely to be repeated in 2019 when part of the industry and has resulted in the results are announced. a surge of new members and activists in this division of the sector. ITN, which produces national news for ITV, Channel 4 and Channel Bectu launched a survey of games 5, is directly affected because workers which generated good the broadcasters are seeking to publicity and interest and the results reduce their contractual spend were published along with key or seek ‘more for less’. As a result, statistics. cost-cutting cycles and job losses This is now being followed up by a are a constant, making it difficult broadcast piece on 5 Live and a story to maintain membership levels. will be published on the BBC news website. London Production Division

Following the launch of the theatre The focus of the London diversity action plan, Bectu has been Production Division (LPD) working with the Department for was the review of the Major Work and Pensions to try to encourage Motion Picture Agreement with more ethnic minority and diverse the aim of ironing out some of the achieve results if we act together. We applicants for theatre vacancies. problems that have arisen since it was are looking at engaging with members introduced in 2017. This process went The unfair dismissal cases against and non-members to carry out local relatively smoothly, if slowly. Picturehouse were successful. A activity around this idea. Work continues on the ‘Eyes Half reinstatement order was granted and For example, branches in W12 are Shut Campaign’ and developing and a financial settlement was reached. planning to collect for the local food refining Bectu’s rates cards. In October 2019, Picturehouse reps bank. Branches will be encouraged to agreed to suspend the Living Staff, campaign for local initiatives to tackle In June the Writers, Producers and Living Wage campaign and call off the the climate crisis. Directors branch held another, very successful Freelancers Fair. public boycott. Following the merger with Worldwide and a period of finding their feet, BBC BBC Regional Production Studios seem to be emerging now as a Work was largely dominated by cohesive organisation. A key area of concern for the Regional implementation of the new terms and Production Division (RPD) membership A new BBC Studios London branch has conditions for BBC staff which were is the availability of production work in been agreed which, while recognising agreed at the conciliation service, the nations and regions. different contracts, will bring together ACAS in the summer of 2018. production and distribution under one OFCOM, the regulator, issues In addition to a multi-year pay deal, umbrella. Meetings have also been guidance for production quotas for improved sick pay and increasing the held with Studios to review working public service broadcasters (BBC, ITV, minimum salary, these negotiations practices for freelancers and rates of Channel 4 and 5) to ensure that a wide produced a raft of new policies and pay at the BBC. range of programme is distributed scheduling arrangements. fairly across the UK. Independent broadcasting As a result, reps’ and officials’ time However, RPD members frequently Broadcasters such as ITV and STV, and energy were taken up by the complain that productions which rely to varying degrees on implementation work. The bulk of this commissioned in their areas are often advertising income, have witnessed a work has now been completed, which staffed by crew “flown in from London”. steady decline in those revenues over will hopefully allow reps and officials the past couple of years. This is mainly OFCOM reviewed its guidance in to focus on recruitment and retention. because leading UK manufacturers 2019. The Bectu sector welcomed the We are also encouraging reps to have cut back on marketing activity strengthening of new criteria to define think of Bectu as a community in due to the economic uncertainty whether or not a given programme the workplace, showing how we can caused by Brexit. commission is genuinely regional.

12 • Prospect annual report 2019 – Sector round-ups In particular, we welcomed the challenges, the key one being BT’s arising from individual consultation proposal that production companies announcement in 2018 that 13,000 as part of the People Framework bidding for commissions within the management roles across BT’s global changes. Some of these left BT as a regional quota should demonstrate operations would be lost – 9,500 of result of the company demanding a substantive and permanent base in them in Prospect-recognised grades in they take a pay cut under the People the relevant region. the UK. Framework.

We also supported the expansion of The company also announced plans This has been the most pernicious the ‘spend threshold’ to the entire to reduce the number of its UK office aspect of the changes and has budget. locations to ‘around 30’ – from the resulted in some members facing pay current 300 – and introduce new cuts of more than 30%. On the third proposed criterion, the pay and conditions under a People proportion of the crew on designated These members’ understandable sense Framework. regional productions who live outside of grievance was exacerbated by the the M25, we were minded to support The new grading system that forms company’s threat to ‘fire and rehire’ the status quo figure of 50%. (This was part of the framework has had a anyone refusing to accept a pay cut. the most contentious issue for RPD negligible impact for the majority of It was therefore unsurprising that members.) members, with their roles remaining many of those facing this invidious unchanged and effectively being However, that support was on the choice opted to take a package to ‘lifted-and-shifted’ into the new basis that this figure should be kept leave the business. grades. under review until the impact of the Many of those in this position were other changes had become apparent. However, a significant minority of long-standing members of staff and, members have had to compete for a therefore, more likely to be members Recruitment, retention reduced number of redesigned roles, of the union. and training plan or been forced to apply for completely The sector produces a recruitment, new roles. The scale of membership decline in BT retention and training plan which was far higher than envisaged at the supports the strategy for each start of the year. of Bectu’s seven divisions for the People Framework following twelve months. Much of 2019 was dedicated to In general terms, the 2019 plan was campaigning for changes to the delivered in that membership across People Framework. the sector grew, although the numbers Agreement was reached on increasing were affected by the significant some of the minima and maxima restructuring in BT and a higher than of the middle salary ranges and usual number of leavers. consolidating car allowances into BBC and Independent Broadcasting pay, where they are no longer an also continued to be challenging areas entitlement. for recruitment and retention. Members’ bonus entitlement, which In contrast, Arts and Entertainment, again was reduced for some staff, was London Production Division and protected under agreed transition Regional Production Division principles. continued to grow at a good rate. Unfortunately, these achievements The overall growth in the Bectu sector were overshadowed by the company’s can be attributed to the increase in Some members were displaced by decision to try to cut pay. freelancers joining the union. the reorganisation and redundancy They also threatened to dismiss and exercises which were run for the first rehire those affected on inferior terms time in BT, although not to the extent BT and digital and conditions. envisaged when the union negotiated divisions a new reorganisation policy in 2018. Even though only around 5% of staff were over the new pay ranges, BT’s The vast majority of members BT decision to enforce pay cuts resonated leaving BT was via the paid leaver far more widely. 2019 was a turbulent year and the programmes, on variable terms, or union was presented with significant as a result of settlement agreements BT told members that it was prepared

Sector round-ups – Prospect annual report 2019 • 13 to take an ideological approach on Nevertheless, the result did enable It is difficult to see how this approach this, rather than seeking to negotiate the union to move on to discussions can be sustainable once buildings a solution with the union. with BT on what the future of pay start to close and relocations take bargaining would look like and how place. In practice, around half of those over best to develop a new employee the range were made ‘exceptions’, However, BT is showing little sign relations accord. given their experience and scarce of candour at this stage. It recently skills, or their roles were deemed to Location strategy decided to no longer refer to ‘around be ‘premium’ thus reflecting the wider 30 locations’ in its communications The seismic changes for managers market rate for these jobs. – even though this remains the in BT are not likely to end with the objective. The issue of enforced pay cuts, and the implementation of the People company’s refusal to implement any Framework, which should conclude in The approach to consulting the mitigation suggested by the union, the middle of 2020. union on the location strategy makes made reaching an agreement on the communicating with members An even bigger structural change, People Framework extremely difficult. somewhat difficult. called The Better Workplace Delegates at the union’s BT Programme (TBWP)/location Nevertheless, we have issued conference instructed the BT strategy, is on the horizon. communications to members and committee to hold a consultative produced leaflets alerting them In May 2018, alongside his ballot on the People Framework. to what is likely to happen to their announcement of 13,000 job cuts, the But an initial consultative vote held workplace in the near future. in March 2019 showed that 96% of then chief executive, Gavin Patterson, Unlike the People Framework, members opposed the changes as also aired proposals to reduce the everyone is likely to be affected by they were at that time. number of office locations in the UK from more than 300 to ‘around 30’. reshaping the office estate and This overwhelming rejection creating what the company describes Scepticism of the proposal was not undoubtedly helped to get some as ‘amazing new workspaces’. confined to the union, particularly movement from BT on the framework. This issue will be at the core of our because BT claimed it could achieve Negotiations led to an increase in the organising in BT over the coming year. this rationalisation over five years. bottom of the range for level E, which Digital division benefited around 350 of the lowest- The new chief executive has not only paid managers in the company. endorsed this strategy, but given a The Digital division’s responsibilities commitment that the move to around are to represent members across the The union also gained agreement on 30 locations will be achieved by 2023. various constituent companies and greater Prospect involvement in the communications, media and digital distribution of annual pay, which had This TBWP provides a huge logistical (CMD) branches and co-ordinate been devolved down to individual line challenge to both the business and the organising and recruitment activities. managers. union. The division’s current membership is The company also agreed to widen the Given the timeline envisaged by the scattered among up to 50 employers union’s recognition under the People chief executive, it is safe to assume – with many of these having only Framework and committed to working that there will be multiple building a handful of members and no with Prospect to develop a ‘new closures taking place at any one time recognition rights. relationship’ to improve negotiation once the programme begins. and consultation structures in BT. Almost 50% of the members in the Prospect’s experience of consulting digital division are largely made up Following a concerted campaign on the closure of one large site in of former BT workers who could be which involved members’ meetings Swindon during much of 2019 showed working elsewhere within the telecoms and calls across the UK, the union the considerable level of union and IT sectors. held a further ballot on the People and employee relations support Framework in July/August. required for those being displaced by Moreover, communications and digital relocation. branches do not have a bargaining The close result – 55% to 45% in remit and in that sense, are similar to favour of the union’s recommendation The TBWP remains shrouded in some Prospect’s regional branches. to accept – indicated continued secrecy, with union representatives unhappiness with how BT had having signed non-disclosure There are some companies where the approached reorganisation and agreements (NDA) in order to have union has recognition and a significant implemented the framework. access to information. number of members.

14 • Prospect annual report 2019 – Sector round-ups Scottish National Party MP Alan Brown addresses a packed Prospect energy summit in London, April 2019

The largest of these is Telefonica Energy sector of government consultations on where our members are largely based aspects of energy policy. on sites in Slough, Warrington and Prospect worked hard to support the Prospect co-sponsored an IPPR report Leeds. interests of members during a period on Just transition for the Northern Many Telefonica members are co- of significant change and pressures energy workforce, which was published located with members working for across the entire energy sector. in March 2019. Capita, including some who were This was helped by the creation of In April 2019, the union hosted a high- transferred from Telefonica under the an overarching energy sector, which level energy summit to consider the Transfer of Undertakings regulations has demonstrated the value of a realistic contribution renewables can (TUPE). shared approach to issues including make to the UK energy mix and the stress and mental health; pay and scope for making political progress on The union also has recognition and conditions; and equality, diversity and energy policy. active members working for Ericsson. inclusion (EDI). This was followed by a seminar on the These areas are fairly stable in terms A first, successful energy sector future of nuclear in May 2019. of membership and the union has conference was held in Manchester Climate negotiated pay deals and some in June 2019. Richard Clatworthy improvements to terms and conditions was elected president and Audrey The climate emergency saw increased over the past year. Uppington was elected as vice- public focus in 2019. Prospect president of the sector. welcomed the introduction of Another area where we have a statutory commitments to achieve net relatively large number of members Policy zero emissions by the UK and Scottish is Vodafone, although unfortunately The absence of a long-term energy governments. there are no active representatives in policy framework has created this area. Following consultation with challenges for members across the representatives, Prospect produced Prospect does not have recognition in energy sector. briefings on the union’s commitment this company and that makes access Prospect sought to engage key to tackling climate change and on key to members, other than through stakeholders and politicians on a priorities for energy policy. written communications, extremely cross-party basis, including through Several Prospect branches took part difficult. There is a regular flow of the union’s involvement in the Nuclear in the international climate action in personal cases from this area, no Industry Council and Energy and September 2019. doubt exacerbated by the absence of Utility Skills. reps. In November, the national The general secretary and senior executive committee committed Despite this, our membership in deputy general secretary met the then to a programme of action Vodafone is relatively stable. However, Secretary of State in Spring 2019, and including reducing Prospect’s own the employer is hostile and our follow-up work has since taken place environmental footprint and training members are spread over several sites, with government officials. In summer and support for representatives to do including many retail sites. 2019, Prospect responded to a series so in their own workplaces.

Sector round-ups – Prospect annual report 2019 • 15 Through 2019 Prospect led TUC work relevant trade union and company on just transition, including visits to representatives were invited. The Ratcliffe power station and Sellafield, government subsequently announced hosted by Prospect representatives. its intention to legislate for the provision of CDCs. This culminated in the publication of a TUC statement on ‘A just transition to Equality, diversity and a greener and fairer economy’, and is inclusion (EDI) being followed up by a programme of Prospect continued to work hard to TUC work focusing on the challenges mainstream equality and diversity and opportunities of just transition on issues on to the bargaining agenda, a regional basis. and a seminar for energy sector Prospect national secretary Richard representatives was held in October Hardy was appointed to Scotland’s 2019. Just Transition Commission, and Despite some initiatives by employers, contributed to a Prospect fringe substantial scope for improvement meeting on this topic at the Scottish remains. Prospect continues to National Party’s conference in exert pressure through the Nuclear Aberdeen in October 2019. Decommissioning Authority’s EDI to the demands of Brexit. The demand Health and safety Council and contributes to work by for skilled resource is only likely to grow Energy UK. Prospect’s involvement in initiatives as we move into the next phase of to reduce accident rates and combat Regulation leaving the European Union. ill-health at work continued through Following joint union submissions to Prospect membership the Energy Networks Association and OFGEM on proposals for the RIIO-2 Energy UK. Our membership across the sector price control review, a constructive has stabilised and started to grow A key focus was Powering Improvement meeting was held with senior OFGEM after the redundancies and forced – the industry’s programme which aims officials in November 2019. head count reduction of the past to deliver a sustained improvement Arising from that meeting, further decade. in health and safety performance proposals were submitted on potential by 2020 by applying and influencing We recruited 3,668 new members into outcome-focused metrics to use in best practice approaches used in top the sector in 2019. Due to increased the next price control period. These performing sectors. labour market churn and an ageing are currently the subject of OFGEM workforce, we have to work harder An investigation into the role of consultations with stakeholders. to maintain membership levels. Our Senior Authorised Persons (SAPs) Additionally, and following impressive recruitment figures this and Authorised Persons (APs) was consultation with the membership year demonstrate the importance of commissioned from the Health and areas most directly affected, Prospect giving staff a voice at work, Safety Laboratory in late 2018. responded to the review of the power Pay Interim findings, presented in outage experienced on 9 August 2019. May 2019, identified a need for This was the first year that improvement in several areas including Public services responsibility for the government’s communications, management of pay remit guidance transferred from fatigue, and resourcing. Further work is the Treasury to the Cabinet Office. 2019 was another testing year for our in progress to address these issues. members working in public services. Against the backdrop of the judicial Pensions Although the union made progress on review taken by Prospect, FDA and a number issues, the lack of pace and PCS, the Cabinet Office was careful to In line with a resolution from the 2018 urgency at the centre of government ensure a higher level of engagement national conference on Collective was a persistent frustration. with the unions at a central level. Defined Contribution Schemes (CDCs), a seminar to explore the possible value Until recently, the head count in the The remit guidance provided of CDCs to the electricity sector was civil service had been cut to its lowest increased flexibly – but no new money. held in January 2019. since the beginning World War II. Offers beyond 2% required Cabinet Office and Treasury clearance. Three actuarial experts gave The headcount increase over the past presentations at the seminar, to which few years has largely been a reaction Assurances were given that 2% was

16 • Prospect annual report 2019 – Sector round-ups not a cap and if employers wished and conditions. The unions have Scheme (CSCS) – and on terms more to go beyond that headline figure, consistently made clear that this is detrimental than those negotiated by that did not have to be predicated on unacceptable. Prospect and a number of other unions changes to terms and conditions. in 2016. Staff attitude surveys continued Prospect was clear that: to demonstrate widespread Although the Conservative Party • staff deserve a pay increase that dissatisfaction on pay with many manifesto was silent on this, it would protects their living standards staff also struggling to achieve a be naïve to believe ministers will not • pay systems must enable staff to reasonable work life balance. return to it. progress towards their pay range Pay systems are in urgent need of In 2016, the government and the maxima over a reasonable period reform and investment and there must Cabinet Office assured us that of time and those terms would not revisited be a greater emphasis in matching • pay increases funded through or eroded. We have repeatedly resource and head count to work detrimental changes to terms told the Cabinet Office that if the demands. and conditions were unfair and government tries to make further unacceptable. In contrast to the pay agenda detrimental changes, we will ballot set by the government in members on action. The outcome was mixed. Some areas, with our support, exploited the flexibilities on offer to deliver tangible increases. The paybill increase at the Department for Exiting the European (DEXU) was at 6%. The Cabinet Office itself offered 3%.

We worked closely with management at the Intellectual Property Office to support their engagement with the Cabinet Office and Treasury to achieve an offer acceptable to members.

At the time of writing, the union was balloting members in the Valuation Office Agency on a three-year pay package worth more than 12%.

Despite progress in some areas, Prospect’s attempts to engage positively was met by foot dragging and belligerence in other areas. Bob Ackroyd, from the Environment, Food and Rural Affairs branch, asks a In too many areas, the 2% figure question at the public services sector conference in Nottingham, May 2019 (despite not being a cap) became a default position.

For a range of reasons, a number Westminster, the Scottish and Civil Service Pension Scheme employers defaulted to the 2% figure – Welsh governments took a far more A significant part of our work in promising to submit a business case in positive approach towards both the past year was focused on the the coming year. Unfortunately, some pay and the importance of trade interim valuation results of the Civil of those employers had made the union engagement. Service Pension Scheme (CSPS) which same promise the previous year. indicated that costs had fallen below Civil Service Compensation the cost cap floor. In other areas, including the Ministry Scheme of Defence, it appears that the The cost cap, or cost control mechanism, employer has forgotten the nature As a result of the judicial review was introduced to offer taxpayers and of negotiation and has been seeking taken by PCS, the government took employees protection from unexpected to push through pay proposals the opportunity to issue a fresh changes in pension costs. which are directly linked and funded consultation on proposed changes from detrimental changes to terms to the Civil Service Compensation Where the value of the pension

Sector round-ups – Prospect annual report 2019 • 17 scheme to employees has changed The unions and the SAB have argued They make an important contribution from the levels set when reformed that the costs associated with the and in a number of professions, pension schemes were introduced in government losing its legal case particularly science and veterinary 2015, steps must be taken to return should not fall on scheme members. areas, are absolutely critical. costs to that level. Prospect was successful in arguing The interim valuation identified an that EU citizens should not have to indicative figure of 5.6%. pay for settled status and encouraged employers to support their staff by Employer representatives and the meeting these costs. unions worked closely together through the Scheme Advisory Board Funding for the public sector (SAB) to develop a “composite” Prospect was proactive in arguing for solution to put the minister. That proper funding for the public sector, composite solution provided for: and the civil service in particular, at • reducing employee contributions by both employer and national level. at least 2% • reforming the contribution structure Although the pay remit guidance was so it is graduated and the existing loosened, this was not accompanied cliff edges effectively removed by increases in funding beyond an assumed 1% pay increase. This is not • improving death benefit provision strategic or sustainable. to four times salary. After a decade of cuts and austerity, As a result of legal challenges to the notion that reasonable pay changes to the firefighters’ and judges’ increases can be funded from pension schemes, the valuations of further cuts and ‘efficiency’ savings all public sector schemes were put on is an illusion. Nor should they be hold by the Treasury in January 2019. funded by changing terms and The government lost its case in conditions. seeking to defend the transitional Standing up for the civil service A Budget is scheduled for 11 March arrangements introduced as part of 2020, but a date for the upcoming the public sector pension changes The past year saw unprecedented comprehensive spending review is yet introduced in 2012. political attacks on the civil service. A number of named civil servants were to be announced. In essence, the courts found the subjected to personal attacks in the The spending review will be critical in protections provided for those closest media and by politicians from the determining the future of our public to retirement to be unlawfully age right and the left. services and is an opportunity for the discriminatory. Much of the criticism was designed to new government to demonstrate that The implications and remedies for this achieve partisan political advantage. austerity really is at an end and that it finding will be complex and Prospect is recognises and values the contribution Prospect was proactive in standing up in discussions with the Cabinet Office made by staff. for our members and public servants and working closely with other civil more widely. It is unacceptable that Diversity and inclusion service and public sector unions. public servants who are not able to Diversity and inclusion continued Although no detailed breakdown has respond publicly should be subjected to inform our work on a range of been given, the Treasury has asserted to this sort of criticism. HR issues. The general move away that the implications of the legal We have to remain vigilant because the from performance-related pay and ruling will be an additional cost to the pressures and strains of Brexit will rise ending guided and forced distribution Exchequer of £4bn a year. again during the year as the govern- performance management was Prospect has challenged this figure and ment grapples with difficult political welcomed as these areas had caused asked for a breakdown of projected questions and potential trade-offs. much concern and dissatisfaction. costs on a scheme by scheme basis. Prospect was also pro-active Despite these positive moves, there Prospect, other civil service unions in speaking up on behalf of the is still considerable evidence that for and the SAB continue to press for the thousands of non-UK EU nationals many members, the civil service is not early implementation of the cost cap working in the civil service and wider the “brilliant” place to work that it says recommendations. public sector in the UK. it aspires to be.

18 • Prospect annual report 2019 – Sector round-ups 3 Rights at work

During 2019, Prospect Legal provided Prospect made detailed submissions In 2019, we recovered more advice to members on a range of to a number of government than £500,000 for members as issues from contract disputes to consultations on potential changes to compensation payable – either as a discrimination at work. Many of these the law. These included: pregnancy result of a settlement after a tribunal resulted in a negotiated successful and maternity discrimination; sexual claim had been presented or a win at resolution without recourse to harassment; one-sided flexibility and the tribunal. litigation and others resulted in legal Guernsey’s discrimination law. These Some notable examples of casework action (see below). are all available on Prospect’s website. during 2019 were: A key part of the legal team’s work • Member won claim of sex is to keep the union’s officers and Legal cases discrimination – after she was representatives informed on the law. denied promotion by the Office for We provided advice and assistance During the year, the team: National Statistics. to members on a wide range of • produced a number of briefings on • A successful conclusion to a employment law issues, including legal developments long-running race and age unfair dismissal, discrimination at • trained hundreds of union reps in discrimination case – Following a work, redundancy and contractual employment law successful case brought by Prospect disputes. • worked on new and updated member, Graham Dean, almost 50 guidance for members and A number of cases were pursued civil servants who were subjected • participated in branch events and through the employment tribunals and to race or age discrimination in seminars. 53 new tribunal claims were presented. the Home Office’s promotion procedures settled their claim with

Rights at work – Prospect annual report 2019 • 19 more than £1m in compensation in against people suffering from her Legal services total. disability.

• Two tribunal victories over failure • Many good settlements of We continued to work with our to consult result in damages claims – Many cases settle solicitors to ensure that members for seven members – In February just before reaching a hearing. receive a high quality, efficient and a tribunal upheld our claim over Examples included cases of: racial responsive service. failure to consult over TUPE harassment due to Islamophobic (the Transfer of Undertakings, comments; equal rights to The Legal Advice line run by our Protection of Employment shared parental pay; disability solicitors advised more than 2,000 regulations) at Lydd airport. In discrimination; unfair dismissal for members on non-work related issues, October, a tribunal found that whistleblowing; sexual harassment; such as family law, consumer problems FlyBMI had failed in their duty to and unpaid wages claims. and tenancy issues. consult over redundancy. For more information on these cases, Prospect’s guide to legal advice • Indirect discrimination in and other employment law news, see describes the full range of advice performance assessment Legal Eye, the legal team’s regular and assistance available and – Six Prospect members won newsletter. Visit https://library. the conditions of the service, see compensation from the Ministry prospect.org.uk/browse/type/ https://library.prospect.org.uk/ of Defence when their challenge to national-newsletter download/2015/01155 their performance assessments was settled at Judicial Mediation. The claims were brought on the basis Personal Injury of age, disability and part time Scheme discrimination. • A security officer won his unfair More than £7.4 million was recovered dismissal claim – A Bectu sector in compensation for 120 members member, employed by Interserve with personal injury claims in 2019. The and working at the BBC, won amounts in each individual case varied his tribunal claim when he was enormously depending on the nature dismissed for what the judge called of the injury and claim. ‘a minor issue’. 270 new applications for legal advice in • A disability discrimination claim respect of personal injury were received was settled at Judicial Mediation in 2019. The types of cases include – A member with Autistic Spectrum asbestos related illnesses, stress, Disorder successfully argued that repetitive strain injury, occupational the MOD’s Situational Judgment diseases and accidents at work. Test for new jobs discriminated

20 • Prospect annual report 2019 – Rights at work 4 Health and safety

Prospect continued to prioritise Kelly, Dr Joanne Crawford health and safety, providing advice Health from the Institute of and assistance to members and and safety Occupational Medicine, representatives, including legal advice Andrew Walsh from the BBC and representation, when they needed conference and Karina Murrell from support. Prospect’s Metropolitan Police branch. We continued to challenge the More than 100 deregulatory narrative around Brexit representatives and highlighted the vital work of the from across the New resources union attended our Health and Safety Executive and In 2019, we revised and health and safety the need for effective regulation and updated our members’ guides conference in April, enforcement. on Safe Driving and Work- called The Path to Prospect has more than 1,000 health related Road Risk and Lone Prevention. and safety representatives who Working. demonstrate their commitment Representatives heard from We also released a briefing for to protecting colleagues’ lives by psychologists, regulators, fellow reps reps to help them evaluate the volunteering for this key role. and employers on ways to tackle work- efficacy of their employer’s stress related stress at source. We continued to use our monthly risk assessment. This document was health and safety bulletin to highlight Speakers included organisational adapted from guidance produced by new resources and information to psychologist Dr Joanna Wilde, the the Health and Safety Executive for support reps in their roles. Health and Safety Executive’s Peter its inspectors.

Health and safety – Prospect annual report 2019 • 21 Training

We trained 58 new health and safety representatives through the union’s national education programme, with dozens more trained in regional and branch-based courses. We continued to incorporate a module on tackling stress into this course.

Prospect continued to run its mental health awareness course after a successful launch in 2017. The course enables participants to build knowledge around mental health so they are able to support colleagues, raise awareness and work with employers to build more positive workplaces. We trained 28 members in 2019.

Health and safety in More than 100 representatives from across the union attended our the energy sector health and safety conference, the Path to Prevention, in April

Prospect continued to be a key stakeholder in the energy sector’s a champion for the human factors framework in the wake of the Grenfell national health and safety committee, strand of the campaign. Tower fire. and the pan-industry campaign called Sue chaired a session at the Energy We criticised continued deregulation ‘Powering Improvement’. Networks Association health, safety in the sector and the systematic In 2019, Powering Improvement and environment conference in May. underfunding of safety regulators, continued to look at human She delivered a presentation on the warning that this legacy would make and organisational factors, and trade union view of human factors in it hard to deliver the reforms the Prospect supported the industry in the industry, highlighting our ongoing government proposed. commissioning a report analysing concerns about fatigue management We also called for wholesale reform leadership in the sector and support and work-related stress. of the building safety regulatory for employees. The report will shape framework, cautioning that the the work of Powering Improvement in Building safety consultation government’s proposals would the coming years. Prospect responded to the introduce increased complexity into Sue Ferns, Prospect senior deputy government’s consultation on reforms an already confusing and fragmentary general secretary, continued to be to the building safety regulatory regime.

22 • Prospect annual report 2019 – Health and safety 5 Education and skills

During the final quarter of 2019, the Vocational training and Training for education team, in consultation with continuing professional representatives national education programme tutors development and national secretaries, reviewed External funding, or paid for courses, During 2019, the national education and redesigned the materials and continued to be the main model for the programme delivered training to 549 workbooks for the Reps 1 and Reps 2 diverse range of support and training members. Almost 200 members (198) courses. the union offers across England, did Union Reps 1, and 118 did the These two courses will form the Scotland and Wales. follow-on course, Reps 2, enabling cornerstone of the union’s training for them to act as case handlers. England reps and will be rolled out during 2020. The national education programme 146 courses were delivered attracting Twenty-two bespoke or regional includes: 1,849 people. The most popular courses were delivered with central courses covered temporary electrical • Reps 1 and 2 union funding, supporting 251 reps/ systems; scriptwriting and Mental • Health and safety members. Health First Aid for freelancers. • Employment law Most of the training related to either • Negotiation skills A very successful BAME hair and Reps 1 or 2. In addition, bespoke make-up programme was delivered • Mental health awareness training in mental health and stress, over a two-week period at the union’s • Bargaining for a sustainable and on how to conduct a meeting, was Clapham office, in collaboration with workplace also designed and delivered. the actors’ union, EQUITY. • Bullying and harassment.

Education and skills – Prospect annual report 2019 • 23 Bectu’s New Talent Bar event is designed for BAME and woman filmmakers to network and share experiences

The course covered Afro hair, a range of employers, universities and New courses included: barbering skills for Afro hair, media trade bodies, such as BBC, Digital • one-to-one to coaching and makeup for black and Asian skin. Cities and Screenskills, to offer a mentoring range of training and outreach Each of the three courses offered • CV reviews support across all regions of England. seven members the opportunity to • autism/neurodiversity in the develop and enhance their technical This project has also continued to workplace for creatives and skills. expand its mental health awareness • funding your creative project. training to include a half day In December 2019, the union The project also supported the programme to pilot a mentoring supported three members to access launch of Bectu’s theatre diversity clusters model. three similar courses delivered in the action plan at the Senedd in Cardiff North West of England. A twitter account, @ Bay. Attendees included politicians, prospectbectutrain, was set up to employers, community organisations Members were able to apply for a raise the profile of the work of the and union representatives. More than bursary from Screenskills to access this training (subject to bursary criteria). project and wider skills activity. 29 organisations in Wales have signed up to the action plan. An introductory Makaton course was Wales also delivered to up to 11 individuals. The project also produced a The Wales ULF, branded the ‘Cult brochure celebrating 20 years of A new, three-year, Union Learning Cymru’ project, was awarded funding the Wales ULF, with case studies of Fund (ULF) project started in April for three years in April 2019. Bectu members. 2019. The project’s learning activities cover Scottish funding for Bectu sector The focus for the first year of the the breadth of Wales – from Cardiff, project was on young workers and Nantgarw, Newport, Carmarthen, Bectu’s Vision project delivers new entrants, exploring how to recruit Aberystwyth and Caernarfon. targeted short courses and a drama from diverse and under-represented training programme to support skills A total of 43 courses, supporting 358 groups and how to deliver new forms development for crews in Scotland, beneficiaries (114 accredited), were of career intervention and support with a focus on scripted production. delivered and hundreds of people across England. engaged with the union at partner The short course programme was fully The project works collaboratively with events. subsidised by Scottish Union Learning

24 • Prospect annual report 2019 – Education and skills (SUL) with funding from the Scottish CRISP (Creative Industries government. Safety Passport Course)

Courses were selected based on an This bespoke, one-day course has annual consultation exercise with the been running since 2012 and is aimed local industry. The project’s key aim at freelancers, sole traders and small is to promote safer, fairer workplaces businesses in the creative industries. for an up-skilled and sustainable Since 2012, the course has been workforce in Scotland. delivered 286 times to 3,345 people. 13 courses were delivered to 141 In 2019, 45 courses were run in 21 learners through SUL funding in 2019. different locations, training 583 Jena Hunter, a recipient of Bectu people – a 22% increase on 2018 Vision’s training, was Scottish Union output. Learning’s learner of the year in 2019. Staffing The four drama training programme Personnel changes across the strands were funded by Screen education and externally-funded Scotland, BBC and ScreenSkills. vocational skills teams included: The producer development • Jane Lancastle left the team programme was designed to increase as section head, leading to a the pool of Scottish-based producers. restructuring of the function. The year-long programme pairs • Rachel Bennett is now education participants with independent and skills manager, with overall production companies and provides responsibility for the representative support in script development skills and wider vocational skills offer. and high-level connections. • Kathryn Sharratt joined the team in Bectu Base a new education officer role. • Paula Lamont joined the English Bectu Base is a free point of contact ULF project team as a young for individuals and organisations who worker project organiser. want to know more about careers • Anna Mehta and Sarah Mindel and crew roles in scripted film and joined Bectu Vision as learning co- television. Support includes CV advice, ordinators on a job share basis. signposting and new entrant training.

In-line with the Scottish Government’s Fair Work framework, Bectu Vision’s flexible working strand promotes talent retention through inclusive working solutions.

TakeTwo is a job sharing initiative for crew and supports job sharing in film and TV for those who have commitments outside of work, or who want to have a better work/life balance.

This initiative work was recently awarded a Raising Films Ribbon in recognition of its work to promote flexible working. The flexible working strand isn’t funded by ScreenSkills.

Bectu Vision’s twitter handle is: @ BectuV

Education and skills – Prospect annual report 2019 • 25 PAY PENSIONS SEX DISABILITY RACE LGBT+ GENDER NEURO- DIVERSITY SUPPORT EOUALITY. prospect.org.uk/join

26 • Prospect annual report 2019 – Education and skills 6 Equalities

Prospect’s equalities networks and a programme of website were updated policy work were an integral part of training for the with new introductory the union’s programme over the year. entire workforce. materials produced Working with the Equal Opportunities The government to enable reps to Advisory Committee (EOAC) and recently announced engage members and branches, organisers and officials, we the introduction of a employers on the issue. looked at how to extend our impact code of practice on With help and support with employers and increase diversity sexual harassment, from the EOAC working within our membership. which is published by group, convened by Equality and Human Ele Wade, we are Some of the highlights of 2019 include: Rights Commission. looking at how we can • Sexual harassment – Building This follows a round make better use of on our landmark 2018 survey into table discussion with our existing training sexual harassment and workplace trade union affiliates and other resources to reach more branches, behaviours, we organised further campaigning organisations. including the potential for a ‘Train branch training events and Although we do not think the code the trainers’ course and awareness supported reps looking for advice of practice goes far enough in training in 2020. and guidance. Training was some places, it does include some • Disability resource pack – The delivered in the following branches: suggestions from trade union union recently published a new Archaeology, NATS, Parliamentary. affiliates. disability resource book. A training In addition, the North West branch • Neurodiversity – The package to support these materials agreed with LLWR management neurodiversity resources on the will be developed in 2020.

Equalities – Prospect annual report 2019 • 27 • Personal Protective Equipment We supported many community Pride Having achieved unprecedented survey – A survey of members events and worked with branches to levels of support for the action plan, about their Personal Protective ensure union support at these local the next stage was to assist theatres Equipment was launched towards events. We continued to provide to increase the number of BAME the end of 2019. A similar survey branch training in LGBT+ awareness applications for jobs and casual work. in 2016 generated thousands of and worked with network members Bectu approached the Department responses and helped to focus to introduce more equality-based for Work and Pensions and jointly attention on the challenges that publicity. had a discussion with Job Centre many members, especially women, Plus. This led to the creation of a face because one size does not fit Theatre Diversity new partnership in which London all. theatre employers were given a single • Black, Asian and minority Action Plan email address to send details of their ethnic work – A network of vacancies, and upon receipt the those who attended leadership Following the launch of the Theatre vacancy would be circulated across training courses was established Diversity Action Plan attended by London’s network of job centres, in order to share information and the Mayor of London with BAME applications encourage activist involvement. in November 2018, encouraged. As a result, As a result, a number of new reps more than 130 theatres unemployed people were nominated to the TUC Black across England, have begun gaining workers’ conference. Scotland and Wales employment in West End had signed up to the • A resource pack was published theatres. plan by mid-2019, during Black History Month which including virtually all provides practical guidance and This prototype was then West End theatres in best practice case studies. rolled out in Wales and London. bilateral work, which had • LGBT work – Prospect’s LGBT+ not been in place before, network continued to be one of In June a bilingual is now ongoing between our fastest growing and active action plan was Cardiff job centres and member networks. The network launched in the local employers. works closely with Bectu’s LGBT Senedd, the National committee to share resources and Assembly for Wales, Bectu is also working campaigning information where in Cardiff with deputy on setting up new links appropriate. Prospect and Bectu minister for culture Dafyyd Elis- between the theatre employers and marched together at London Pride Thomas as the guest speaker. Almost BAME arts organisations in order to which was held to mark the 50th 30 organisations in Wales are now extend employment opportunities to anniversary of the Stonewall riots. signatories to the action plan. BAME workers in related fields.

28 • Prospect annual report 2019 – Equalities 7 Benefits and services

offers had been taken up by members. sport, fitness and wellness products Prospect Plus ie gym wear, sports clothing, Many of the Prospect Plus benefits nutrition and activity trackers Prospect Plus, the affinity benefits are backed by a national price • Totum Pro by NUS Extra – a new scheme for Prospects members, promise, which indicates that Prospect discount card from NUS Extra continued to save members time members will get the best rates in the for professional learners and and money in a wide range of offers UK for that product or service. Or a professional associations including: provider price promise, which indicates • discounts on English Heritage and • Apple products that Prospect members will get the National Trust membership. • cinema tickets best rates that provider gives to any group. • car and home insurance The most popular benefits on the • discounted income protection New offers added to the scheme in Prospect Plus website were: • retail cashback cards 2019 included: • cinema tickets • holidays • a discount on the subscription to • cashback cards, • and much more. The Economist • gym membership • affordable motor homes – • Totum Pro The number of members who are reductions on the price of hiring a • home and travel insurance. actively using the site and taking up motor home these offers has gradually increased • DFDS Ferry – discount of the cost of since the launch in 2018. Dover crossings By the end of 2019, more than 6,500 • My Active discounts – reductions on

Benefits and services – Prospect annual report 2019 • 29 Bectu public benefits were paid to the beneficiaries of 99 members in 2019 totalling liability insurance £109,334.40.

Bectu’s two-in-one plan provides Benevolent fund public liability cover of up to £10m as well as personal accident cover of Members or their dependants in £100 a week. financial distress can apply for a grant from Prospect’s benevolent The policy includes: fund. Prompt attention is given to • provision for claims up to £25,000 emergency requests and all cases are in respect of goods in the member’s considered sympathetically. Awards custody and control (up to a are made at the discretion of the maximum total of £100,000). fund’s trustees. • personal accident cover of £100 In 2019, the union made 14 grants with a week for up to 52 weeks where a total value of £23,613. injury forces a member aged under 70 to stop working (excluding the first fortnight) and a £20,000 Asbestos and lump-sum payment in the event of respirable crystalline specified serious injury or death for a member aged up to 70, and business, its wider fund offerings and silica registers reduced lump sum payments for increased number of advisers, means Prospect continued to publicise the members aged 70 to under 75 and that Lighthouse will be able to deliver importance of its asbestos register. 75 to under 80. an enhanced service to members. An entry on the register provides PLI costs £38 a year for Bectu In 2019 enhanced information in the event members, and covers the individual • 134 members attended Lighthouse of a claim. Whether members have member, a Limited company where seminars registered their details or not, they can the member is the sole employee, • 471 members attend surgeries still access Prospect’s personal injury and a formal partnership where the • 507 members had individual scheme should they be the subject of a partner is also a Bectu member who appointments. latent occupational health issue. subscribes to the insurance. 2,041 members were on the register at 9,446 members took out the insurance Other benefits offered the end of 2019. To register, contact in 2019. by Prospect include: [email protected] or log in to the website to download a form: Prospect energy club • health and dental plans https://library.prospect.org.uk/ • discounts for the University College download/2020/00131 Three energy switching periods took of Osteopathy The privacy notice is at: https:// place in 2019, and 563 members used • legal services, including a will library.prospect.org.uk/ the service to switch providers. writing service. download/2020/00132 10% of customers switching their gas and electricity suppliers with Death benefit Respirable crystalline Energyhelpline (and their partners) silica register between 1 January 2019 and 30 Prospect’s death benefit scheme September 2019 saved £461 or more. offers a lump sum payment to a Prospect’s respirable crystalline silica dependant of a working member register is now in operation, after Lighthouse who has died. The payment is to help agreeing a form to record cases of with funeral expenses or to provide exposure to the substance with the financial advice for children under 18, and is at the union’s solicitors in 2016. At the end of discretion of the union’s national 2019, two people were on the register. Lighthouse Financial Advice was executive committee. The form and associated information acquired by the Quilter Group of The lump sum is equivalent to five is on the website’s health and safety companies in 2019. times the union’s highest national pages: https://prospect.org.uk/ The range and scale of the enlarged annual subscription rate. Death topic/respirable-crystalline-silica/

30 • Prospect annual report 2019 – Benefits and services Compensation Scheme for Radiation Linked Diseases

Prospect plays an active role in The Compensation Scheme for Radiation- Linked Diseases (CSRLD) – a joint initiative between the UK’s nuclear- sector employers and their trade unions.

The scheme is designed to provide an alternative to legal action for past and present employees of participating employers who have been exposed to radiation during their work and who are subsequently diagnosed to be suffering from radiation-linked cancer or cataracts. It has had a successful year and is continuing to process cases.

The Scheme received 26 new claims during the 2018/19 financial year. One claim proved successful and is under negotiation. A further 11 compensation settlements reached completion, all of which were identified following the main retrospection exercise.

1,660 cases have been considered since the scheme began and 162 resulted in successful claims. £8.740m has been paid to claimants.

16 of the successful cases were due to a retrospection exercise in 2012 to review old claims in the light of new scientific evidence on the effects of exposure to ionising radiation.

The scheme awards payments for cases with a causation probability of 20% or above. In a court case a claimant must prove a causation probability of 50% where an ‘all or nothing’ approach based on the balance of probabilities is applied.

For further information visit www. csrld.org.uk or email gill.wood@ prospect.org.uk

Benefits and services – Prospect annual report 2019 • 31 PROTECT ADVANCE DEVELOP NETWORK STRENGTHEN SUPPORT GROW SUCCEED

JOINTHE UNION. prospect.org.uk/join

32 • Prospect annual report 2019 – Benefits and services 8 Membership, recruitment and organisation

Prospect’s membership grew in 2019 The organising team worked across The Member Recruit Member and was 145,510 at the end of the sectors to think of innovative scheme continued to be an effective year. opportunities to recruit, retain recruitment and organising tool. More and organise to grow Prospect’s than 5,100 new joiners were recruited The changes on the 2018 figures membership. via the scheme in 2019.

Prospect members on 143,865 The team organised around issues 31 December 2018 including: Union Week and plus new members 17,454 • pay Heart Unions Week less members (deceased, • Brexit -15,764 left or lapsed) • Science, Technology, Engineering Our two key recruitment campaigns

Total on 31 December and Maths were Heart Unions Week in February 145,555 2019 • sexual harassment and and our own Union Week, which was held in November. These figures endorse the union’s • LGBT issues. approach to recruitment and the Organisers also worked alongside These both received widespread hard work and commitment of reps, colleagues in the education department support from branches and organisers and organising officials to to pinpoint new reps and deliver more representatives and included grow the union. training courses for reps in 2019. an excellent range of activities

Membership, recruitment and organisation – Prospect annual report 2019 • 33 for members and potential Young professionals Bectu’s subscriptions models and members. identify changes to ensure financial network resilience for the future. Union week in November saw 1,439 new members, a slight increase on Five options were drawn up and Prospect’s young professionals 2018. The campaign was successful, shared with the national executive network held its young workers’ month committee (NEC), senior sector with 2,279 new members recruited in November with a series of events representatives and Bectu divisional during November. across all its sectors which yielded 970 committees. However, recruitment and organising new young members. Through these discussions, it became is not just confined to one or two weeks The network also organised seminars evident that Bectu representatives and work was undertaken all year to on housing and finance. recruit and organise around issues and had a strong appetite to focus on the this was seen across all sectors and A strategy is in place for more sessions subscriptions paid by lower-income areas. in 2020 which will allow more members members. to access training and networking This was especially apparent in work and will focus on greater integration Anomalies and adjustments to around issues such as pay, bullying and between the YPN forum and branches. Prospect’s subscriptions system were harassment and working time. also identified and these formed The network held a successful the basis of the recommendations Recruitment and organising work was weekend in Manchester where 50 adopted by the NEC. also done around industrial action, young members were trained in areas particularly in the heritage sector. such as campaigning and recruitment. In the final quarter of 2019, Prospect It elected a new committee which is started the consultation process with going from strength to strength. branches. The general secretary wrote Bectu sector a detailed proposal on subscriptions, The network also piloted the use of supported by a video, which was The Bectu sector organised many ‘Thought Exchange’, a crowdsourcing sent to all Prospect and Bectu sector events and initiatives aimed at platform, to gauge the issues that members. showing the positive impact of joining matter most to young members. This a union. These included: resulted in the ‘We deserve better’ Union officials and NEC members • Post Fest campaign which will run through 2020. made themselves available and where possible, attended branch meetings • a freelancers’ fair All the events and activities focused or AGMs to gain an understanding of • Find your Future on recruiting young members yielded how our members/branches felt about • events around IR35 tax changes positive results with 7,995 new joiners the proposed approach. • settled status and across the union in 2019. Representatives were also offered the • health and safety issues. Scotland opportunity to dial in to a series of Bectu organising officials also co- calls which were set up to discuss the ordinated a young workers’ month in Teams in Scotland organised activities subscription proposals and answer September which recruited 479 new and events for tech and software questions. young members and culminated in workers and for workers in renewable After the consultation process, a young film makers awards event in energy. motions were drafted based on the London where awards were presented proposals and agreed at the January by Ken Loach. Subscriptions 2020 NEC meeting. These motions will Bectu also launched a major appear on the national conference campaign, Dignity at Work, which will During 2018, a small working group agenda where delegates will debate run throughout 2020. was set up to look at Prospect and and vote on them.

34 • Prospect annual report 2019 – Membership, recruitment and organisation 9 Awards

The national executive committee granted awards to the following Long service awards members in 2019. Member Branch Distinguished service Garry Burdett Health and Safety Executive David Bye Scottish and Southern Energy Group award (silver) Roger Hibbins Valuation Office Agency Matthew Kelly Department for Transport Member Branch Peter McAlister Education and Children’s Services Sean Education and Roger McKechnie EDF Maguire Children’s Services Mark Pendlington Ordnance Survey Graham Ross Veolia Steve Rossall Springfields Fuels Limited Sue Sale Springfields Fuels Limited Ed Simmons Valuation Office Agency Alan Warren Natural History Museum Lloyd Wells Springfields Fuels Limited Barry Woodrow UK Power Networks

Awards – Prospect annual report 2019 • 35 PAY PENSIONS GRADING REDUNDANCY TAKEOVERS TRANSPARENCY EVALUATION P L AY FAIR. prospect.org.uk/join

36 • Prospect annual report 2019 – Awards 10 Managing the union

In 2019, the contact centre dealt Data audit Member Contact with: Governance and accountability are Centre • 25,831 calls a legal obligation and a key part of • 45,247 emails the principles of the General Data The Member Contact Centre has • 1,982 webchats Protection Regulation (GDPR). made it easier for members to get in touch for advice or support. The More than nine in 10 (92%) of all calls At the end of 2019, the data helpline – 0300 600 1878 – is open were answered within 90 seconds. compliance officer (DPCO) launched between 8:30am and 7pm Monday to a major data audit of the union 95% of all emails were responded to Friday. to assess the level of compliance within 24 hours within Prospect. The audit is due The department provides 10,147 new applications for to be completed later in 2020 and employment law advice on a wide membership were processed. will enable the union to continue to range of topics and practical support improve its data protection. including updating contact details and helping members with their Data protection Data breaches/subject access subscriptions. requests/complaints Data protection became All contacts are logged using a case In 2019, 20 data breaches were embedded into the union’s work in management system, which means reported to the DPCO by staff and 2019. The work undertaken built any advisor can look up and help a reps. The majority of these breach on the policies and procedures member with an ongoing query or incidents involved emails. case. established in 2018.

Managing the union – Prospect annual report 2019 • 37 The DPCO also responded to 12 Employee salaries subject access requests during 2019. The union received two complaints Motion 39 from 2014’s national from members about the use of their conference instructed the NEC to data. present in the annual report the Policies and procedures number of employees, in salary bands of £10,000 steps, from £10,000 up to The following policies and procedures the salary of the general secretary. came into effect in 2019: This is reflected in the table below, but • special category data policy please note: • clean desk policy • these steps do not reflect the • asbestos exposure database. Prospect grading structure or the salary ranges attached to each Action grade • a data breach incidence response • the figures include the full-time video was circulated to all staff equivalent salaries for those • a data audit video was circulated currently working part-time hours to all staff • the general secretary’s salary is • work began on creating a data a spot rate and can be found at retention policy and disposal end of the Prospect Notes to the schedule Accounts section. • privacy notices were created for the education and training Salary band 2019 2018 department. £10,000-£19,999 2 1

Advice was provided to staff and reps £20,000-£29,999 18 34 in 2019 on: £30,000-£39,999 90 77 • use of biometric data • processing union data in the £40,000-£49,999 49 45 workplace £50,000-£59,999 50 65 • data sharing and access to £60,000-£69,999 33 16 members’ data • direct marketing £70,000-£79,999 9 8 • erasing members’ data £80,000-£89,999 4 4 • Brexit and the status of members’ £90,000-£99,999 1 1 data in Jersey, Guernsey, Isle of Man, Gibraltar and overseas 256 250 members

• TUPE transfer and data sharing • contract advice.

38 • Prospect annual report 2019 – Managing the union Organisational Development Development Management Nicola Duffy Nicola & People & People Member Contact Amy Calverley Cora Green Cora GS Office GS Prospect organisation chart organisation Prospect Centre SMT = senior management team together fit howour teams reflects chart organisation This Senior General Deputy Secretary (SMT) Secretary Sue Ferns Ben Middleton MacCrimmom Steve Thomas Midlands & North East North Employee Relations Gill Wood Gill North Becky Becky SERO

Secretary (SMT) Secretary Deputy General Deputy Philippa Childs Communications Communications BECTU – A&E, – A&E, BECTU Noel McClean LPD and RPD and LPD BBC and IBD and BBC John Ferrett John MacDonald & Digital BECTU – – BECTU – BECTU Spencer

General Secretary General – 31 December 2019 Communications and Mike Clancy Mike Research (SMT) Andrew Pakes Communications Jonathan Green (SMT) Director of of Director Rachel Bennett Kieren Walters Marion Scovell Sam Gipson Sam Organising Education Research Legal Secretary (SMT) Secretary Deputy General Deputy Garry Graham Aviation, Defence Heritage, Law Richard Hardy Richard Alan Leighton Agriculture, South WestSouth Dave Allen & Security Steve Jary Transport Scotland & Energy Health & Tony Bell Tony & Wales Resource Director Director Resource Administration David Pelly David Patrick O’Neill & General (SMT) Facilities Director of Business Services (SMT) (SMT) Services Joanne Rowe Joanne Hafsa Begum Information Technology Paul Xuereb Finance

Managing the union – Prospect annual report 2019 • 39 Schedule of investments at cost and market value

SCHEDULE OF INVESTMENTS AT COST AND MARKET VALUE Cost Market value

Share holding £’000 £’000

Sarasin & Partners – Equities and gilts 50,901 Civitas Social Housing 56 47 1,312 Invesco Physical Gold ETC 209 223 64,412 International Public Partnership Ltd 46 56 160,966 Jupiter Absolute Return IA 230 232 50,640 Syncona Ltd prev BACIT 58 111 61,430 Oakley Capital Investments 51 86 650 754

Sarasin & Partners – Unit Trusts

39,567 Gresham House Storage Fund 41 43 1,614 Muzinich Global Tactical Credit Fund 165 163 7,260 Neuberger Berman Emerging Market 70 74 38,060 Octopus Renewables Infrastructure 38 41 456,187 Sarasin Equisar - Global Thematic 625 1,009 4,513,860 Sarasin Equisar - UK Thematic 5,227 6,275 49,325 Sarasin Food & Agriculture 62 108 1,470,884 Sarasin Global Dividend 1,869 2,634 482,725 Sarasin Global Equity Income 608 834 109,510 Sarasin IE Global Income 1,102 1,250 34,125 Sarasin IE Real Estate Equity 392 618 1,950 Sarasin IE Systematic Emerging Markets 136 159 2,307,944 Sarasin Sterling Bond Inc 2,436 2,610 219,477 Sarasin Thematic Global Equity International Inc 624 813 92,215 US Solar Funds 70 73 13,463 16,705

Sarasin & Partners Portfolio – Total 14,112 17,459

Rathbones – Equities and gilts 29,574 3I Infastructure Ltd 100 145 35,300 The Automobile Association Plc 62 21 330,000 Aberdeen Standard Fund 161 191 100 Alphabet INC 98 101 160 Amazon Com Inc 19 174 98,500 Apax Global Alpha LTD 151 170 910 Apple Inc 48 202 1,120 Astrazeneca Plc 103 152 70,000 Aviva 78 78 10,450 BH Global Ltd 123 159 61,807 Bilfinger Berger Global Infrastructure 99 137 5,570 BHP Billiton 64 99 22,000 BP Plc 100 104 1,650 Citigroup 49 100 126,363 Civitas Social Housing 140 115

10,800 Clinigen Group Plc 42 100

40 • Prospect annual report 2019 – Managing the union SCHEDULE OF INVESTMENTS AT COST AND MARKET VALUE Cost Market value

Share holding £’000 £’000

Rathbones – Equities and gilts (continued) 100,000 Credit Suisse 100 100 4,040 Diageo Plc 73 129 35,800 Equiniti Group Plc 120 99 25,400 Fundsmith LLP Equity inc 80 108 52,600 GCP Infrastructure Inv Ltd 122 132 5,700 GlaxoSmithkline Plc 88 141 70,000 HSBC Bank Plc FTSE Digital 70 73 220,000 HSBC Bank Plc USD 171 240 23,000 HSBC Holdings Plc 159 136 10,450 Ishares Plc 127 142 54,000 Jo Hambro Capital Mgmt 51 93 210,000 JP Morgan 209 210 1,260 JP Morgan Asset Mgrs US Equity Income 424 183 25,200 Legal & General Group 34 76 178,520 Link Fund Solutions Pty Limited 335 388 130,000 Lloyds Banking Group Plc 83 81 70,500 Londonmetric 77 167 43,600 M&G Plc 106 123 120,000 Merian Chrysalis Inv Co LTD 149 148 140,000 Merian Investment Funds 203 240 11,657 National Grid Plc 121 189 1,200 Paypal 101 98 4,500 Plus500 Ltd 69 40 5,600 Prudential Plc 69 122 260,000 Rathbone Unit Trust MGMT 264 264 96,700 RBC Capital Markets 61 116 95,000 RBC Capital Markets Euro 94 100 1,650 Reckitt benckiser Group Plc 102 101 30,000 Rentokil Initial Plc 87 136 1,615 Rio Tinto Plc 59 73 365 Roche Holdings 65 121 9,250 Royal Dutch Shell Plc 164 207 41,700 S4 Capital Plc 76 80 4,000 Schroders Plc 98 133 2,700 Scottish and Southern Energy 33 39 120,000 Sequoia Economic Infrastruct 135 140 16,500 Smart Metering Systems Plc 75 93

Managing the union – Prospect annual report 2019 • 41 SCHEDULE OF INVESTMENTS AT COST AND MARKET VALUE Cost Market value

Share holding £’000 £’000

Rathbones – Equities and gilts (continued) 26,300 Sophos Grp Plc 76 147 15,000 SSP Group 44 90 43,000 Tesco Plc 104 110 55,000 Threadneedle Investments 130 158 76,000 UK Government Treasury 130 150 2,725 Unilever Plc 45 119 950 Visa Inc 81 135 36,313 Vodafone 110 94 6,613 8,112

Rathbones – Unit Trusts 295,000 Aberdeen Standard Fund Managers 252 260 107,000 Blackrock Fund Managers 155 172 59,700 Janus Henderson Global Investors 65 286 142,291 Janus Henderson Global Strategic Bond 191 198 155,000 JP Morgan Asset Managers 307 550 21,300 Legal & General Unit Trust Managers 98 116 13,000 Marlborough Fund Managers 168 241 47,000 Schroder Oriental Plc 66 121 17,700 Stewart Investors 57 136 11,200 Templeton Emerging Markets 76 94 75,000 BUPA Finance Plc 86 79 230,000 UBS AG 232 241 1,755 2,492

Rathbones Portfolio – Total 8,368 10,604

Other unit trusts 888,528 TU Fund Managers Trade Union Unit Trusts 1,955 7,165 988,836 Aberdeen Multi Manager Diversity Fund 1,062 1,459

3,017 8,625

Total Unit Trusts 18,234 27,822

Total Equities and Gilts 7,263 8,866

Bank deposits 777 777

Unquoted shares £’000 £’000 Unity Trust Bank Plc 327 455 Other 9 9 Unquoted shares Sub total 336 464

GRAND TOTAL 26,611 37,928

42 • Prospect annual report 2019 – Managing the union 11 Other organisations

opportunities for members to get The Trust knows that it takes more Charities involved, either by participating in a than food to end hunger. That’s why fundraising event or volunteering at a it brings together the experiences of Prospect’s 2018 national conference local food bank. food banks in its network to challenge agreed to review the union’s charitable the structural economic issues and humanitarian support. After The Trussell Trust that lock people into poverty, and conference, the national executive The Trussell Trust supports more than campaigns to end the need for food committee set up a working group 1,200 food bank centres in the UK banks in the UK. to consider whether Prospect should to provide a minimum of three days’ form new charitable partnerships. War Child nutritionally-balanced emergency Following an investigation and food to people who have been referred War Child supports vulnerable interview process, it was agreed to end in crisis, as well as support to help children in conflict-affected places in Prospect’s association with Oxfam people resolve the crises they face. the world in three ways: and to form new partnerships with • protection – providing safe Between 1 April 2018 and 31 War Child and the Trussell Trust. These environments for children to live, March 2019, its food bank network were formally launched in September play and learn, and psychological distributed 1.6 million three-day 2019. first aid to help them overcome the emergency food parcels to people in trauma of conflict Both charities have a strong track crisis, a 19% increase on the previous record of delivery and are keen to year. More than half a million of these • education – removing barriers to work pro-actively with Prospect both went to children. education and providing literacy nationally and locally. There are also and numeracy skills

Other organisations – Prospect annual report 2019 • 43 • livelihoods – delivering life skills Affiliations and linked organisations and business development training to vulnerable young people and Prospect maintains contact, and is involved with, a significant number of external their parents and siblings. organisations. Some of these are the result of conference decisions for direct At the end of 2019, members and reps affiliation; other affiliations provide information or the opportunity to exchange had donated £1,260 to the Trussell views. A list of these bodies is set out with the current headquarters contact for each Trust from Member Recruit Member organisation. NB this list is not exhaustive. vouchers. Organisation Officer The union donated £25,078.31 to War Child, largely from the closure of the Action for South Africa Jonathan Green Oxfam accounts. Association of Licensed Aircraft Engineers Garry Graham Confederation of Shipbuilding and Engineering Unions Garry Graham European Federation of Public Service Unions Garry Graham European Transport Federation Garry Graham Federation of Entertainment Unions Philippa Childs Hope Not Hate Philippa Childs Institute of Welsh Affairs Gareth Howells International Federation of Air Traffic Safety Electronics Ass’n Garry Graham International Transport Workers’ Federation Garry Graham Irish Congress of Trade Unions Richard Hardy Justice for Colombia Mike Clancy National Pensioners Convention Andy Bye Pensions & Lifetime Savings Association (was NAPF) Joanne Rowe Public Service Pensioners Council Andy Bye Royal Aeronautical Society Garry Graham Scottish Pensions Forum Andy Bye Scottish TUC Richard Hardy ShareAction Sue Ferns The Howard League Alan Leighton TVPC – Thames Valley Retired Members’ Group Andy Bye Trades Union Congress Mike Clancy UK Flight Safety Committee Garry Graham Uni Global Union Philippa Childs Wales TUC Mike Clancy Other bodies to which Prospect is linked British Medical Association/joint committee Sue Ferns British Veterinary Association Ben Middleton Federation of Ophthalmic and Dispensing Opticians Sue Ferns Museums Association Alan Leighton Professionals Australia Mike Clancy Trade Unions for Safe Nuclear Energy Gill Wood Unions 21 Sue Ferns Workers’ Educational Association Sue Ferns

44 • Prospect annual report 2019 – Other organisations 12 Pay deals

Headline Headline Effective Effective Bargaining unit increase Bargaining unit increase date date % % Babcock REME Training ABL Alliance Aug 19 3 Apr 19 3.5 (Lyneham and Sultan) AES Ballylumford Jan 19 2.1 BAE Systems Land Systems Agriculture and Horticulture Apr 19 2.5 Apr 19 2.7 Shared Services Development Board BAE Systems Land Systems Weapons Apr 19 2.5 Airwave Apr 19 2.5 BMCS offshore engineering Apr 19 2.5 Al Jazeera Jan 19 3 and technical staff Army Aviation Centre Middle Wallop Apr 19 3 Birmingham Royal Ballet Apr 19 AMCO Jan 19 2.5 Brewery Arts Centre Apr 19 AMEC Energy Ex AMEC NNC Jan 19 2.4 British Board of Agrement* Jul 19 1.5 ANS Gatwick Engineers Jan 19 3.5 BBC Atos Apr 19 Aspire Defence Apr 19 2.5 BBC Aug 19 2.5 Association of School and Jan 19 2.2 BT Jun 19 2.5 College Lecturers British Veterinary Association Jan 19 3 Babcock DSG Apr 19 2 Bournemouth Airport Apr 19 2.25 BRE Oct 19 1

Pay deals – Prospect annual report 2019 • 45 Headline Headline Effective Effective Bargaining unit increase Bargaining unit increase date date % % CABI Jul 19 2.5 Insolvency Service* Aug 19 2 Capita Mar 19 2 IoM Government Social Care Apr 19 2.5 Cavendish Nuclear Apr 19 2.25 Isle of Man Government Whitley Apr 19 2.5 Centre for Environment, Fisheries IoM Health MPTC Apr 19 2.5 and Aquaculture Science* Apr 19 2 ITN 2.5 Centrica Energy Operations Apr 19 2.3 ITV plc Jan 19 2.5 Certsure Apr 19 2.5 Joint Nature Conservation Committee Aug 19 2 Chatham House Oct 19 2.5 Kings Place Music Foundation Apr 19 City of Birmingham Land Instruments Apr 19 2.5 Apr 19 Symphony Orchestra Lime Pictures Jan 19 2.4 Civil Aviation Authority Apr 19 2 Low Level Waste Repository Apr 19 2.5 Cottam Power Apr 19 2.1 Lufthansa Technik Apr 19 2.2 Defence Science & Jun 19 2.15 Magnox Electric Ltd Apr 19 1.9 Technology Laboratory* Manx Electricity Authority Apr 19 3 Department of Communities Metropolitan Police Aug 19 2 and Local Government* Jul 19 2 Museums Association Apr 19 3 Department for Work and Pensions* Jul 19 2 NATS Air Traffic Control Officers Jan 19 3 Diamond Light Source Oct 19 2 NATS Air Traffic Systems Specialists Jan 19 3 Drax Power Apr 19 2.8 National Archives* Apr 19 2 Drax Power (Senior Production Group) Jan 19 2.8 National Galleries of Scotland Apr 19 4.75 Drax Thermal & Hydro Pay Jan 19 2.8 National Grid Jul 19 2.9 DSRL (Dounreay) Apr 19 2.9 National Lottery Community Fund Jan 19 2.5 Electricity North West Aug 19 2.9 National Museums of Scotland* Apr 19 3 E.ON CHP White Collar Apr 19 3 National Physical Laboratory Apr 19 2.75 E.ON EC&R Apr 19 3 National Portrait Gallery Apr 19 1.5 E.ON EC&R CHP Blue Collar Apr 19 3 National Quality Assurance NTS Apr 19 2 E.ON EC&R Generation White Collar Apr 19 3 National Theatre Apr 19 2 E.ON Energy Solutions (White Collar) Apr 19 3 Natural England* Aug 19 2 E.ON Generation White Collar Apr 19 3 Natural History Museum Aug 19 2.25 E.ON IT Apr 19 3 Natural Resources Wales Jun 19 3 First Hydro Company Apr 19 1.5 Nord Anglia Harrogate Apr 19 2 GE Healthcare Biosciences Apr 19 2.5 (Amersham PLC) Northern Ireland Electricity Apr 19 1.6 Glyndebourne Jan 19 Northern Powergrid Apr 19 3.2 Government Officers’ Association Apr 19 2.5 Northern Powergrid Apr 19 3.13 Heathrow Airport Limited Jul 19 4 Norwich International Airport Apr 19 2.25 Highlands & Islands Airports Apr 19 3 Nuvia Ltd Jan 19 1.6 Historic Environment Scotland Apr 19 3 Office for National Statistics Aug 19 2 Home Office* Jul 19 2 Oil and Pipelines Agency Apr 19 2 House of Commons Apr 19 3 Ordnance Survey Apr 19 3.2 House of Lords Apr 19 3 Ortho Clinical Diagnostics Mar 19 2.5 HR Wallingford Ltd* Apr 19 2.25 Plymouth Marine Laboratory Apr 19 2.6

46 • Prospect annual report 2019 – Pay deals Headline Effective Bargaining unit increase date % Prestwick Airport Apr 19 2.5 Prison Service Non-phase 1 Apr 19 2.2 Rheidol Power Station Jul 19 2 Ricardo E&E Jan 19 3 Rothamsted Research* Apr 19 0 Royal Botanic Gardens Kew* Oct 19 2.5 Royal Mint Apr 19 2.5 Royal Museums Greenwich* Apr 19 2 Royal Opera House Apr 19 2 Royal Parks Sep 19 2.1 Royal School of Military Engineering Apr 19 2.1 Royal Shakespeare Company Apr 19 2 Sellafield Ltd Apr 19 2.5 Science Museum Group* Apr 19 2.7 Scottish Criminal Cases Apr 19 3 Review Commission Scottish Government Apr 19 3 Scottish Parliament Apr 19 3 Scottish and Southern Energy Apr 19 2.25 Sheffield Theatres Apr 19 Society of London Theatre Nov 19 2.5 SONI Apr 19 2.4 Springfields Fuels Ltd Apr 19 2 Telefonica (O2) Mar 19 2.7 UKAS* Apr 19 3.1 Uniper Business Services Apr 19 2.25 and UK Centre Uniper Generation Apr 19 2.25 Uniper IT Apr 19 2.25 Uniper PES See Note: £1,000 consolidated Apr 19 note increase to all base salaries Uniper UGC Jan 19 2.25 Uniper UTG See Note: £1,000 consolidated Apr 19 note increase to all base salaries United Utilities North West Apr 19 3 Universities UK* Sep 19 2 URENCO Jan 19 3 Wales Audit Office Apr 19 0.6 Welsh Government Apr 19 2.3 West Burton Power Apr 19 2.1 Western Power Distribution Apr 19 3.7

Pay deals – Prospect annual report 2019 • 47 HARASSMENT INSULTS UNDERMINING SARCASM INTIMIDATION TROLLING NITPICKING ISOLATION

STOPBULLYING. prospect.org.uk/join

48 • Prospect annual report 2019 – Pay deals 13 NEC, officers and sub-committees

National executive committee James Henderson 5 Gordon Hutchinson 5 1 January – 31 December 2019 Tom James 5 James Leppard 5 NEC meetings held: 5 Andy Mooney 3 Member Meetings attended Satnam Ner 3 Freddie Brown 4 Steven Nicholson 4 Rebecca Cummings 5 Philip O’Rawe 5 Christine Danniell 5 George Ryall 4 Mike Dick 2 Alan Smith 4 Steven Dickson 4 Gary Swift 2 Andrea Gauld 4 Ian Stewart 2 Alan Grey 5 Nigel Titchen 1 Steve Grey 5 Audrey Uppington 4 Elinor Harrison 4 Tasos Zodiates 5

NEC, officers and sub-committees – Prospect annual report 2019 • 49 Retired Members’ Group Meetings attended Lay reps • Lloyd Collier – • Debbie Wilson David Harding 4 Diamond Light Source – Sellafield Ray Arrowsmith 4 (to Oct 2019) • Barrie Worth – Presidential team Meetings attended • Richard Hogben Digital division President Craig Marshall 5 – Met Office • Keith Stokes (Bectu) Vice-president Ann Jones 5 • Paul Sharples – BT Vice-president Eleanor Wade 5 Adastral Park C • + YPN member Deputy vice-president 5 Neil Hope-Collins Defence maritime and logistics group Senior management team • Satnam Ner (chair) • Thomas James (chair to June 2019 • General secretary – Mike • Resource director – from July 2019) Clancy David Pelly • Garry Graham • Senior deputy general (secretary) • Alan Grey • Director of Business secretary – Sue Ferns Services – Joanne Rowe Lay Reps • Deputy general secretary • Michelle Armour • Graham Jickells – Garry Graham • Director of Communi- • Stephen Barber • Peter Lawrence • Deputy general secretary cations and Research • William Bennett – Philippa Childs – Andrew Pakes • Brian Lewthwaite • Gary Best • David Linton • Simon Bracchi Trustees • Patrick McKee • Jeanette Braginton • Del Northcott • Chris Burton 1 January – 31 December 2019 • Mick Payne • Simon Finney • Phil Kemball (chair) • David Simpson • Lisa Gollogly • Grahame Robinson • Raymond Humphries • Phil Hooley (from • William Searle (to July 2019) Nov 2019) • Chris Hopper • Alun Jackson • Michael Wilson Auditors Electricity Supply Industry • H W Fisher sub-committee

Appeals Committee • Richard Clatworthy • Elinor Harrison (chair) • John Hind • Tim Potter (appointed March 2019) • Eric Brunger • John Price March 2019) • Suresh Tewari • Ian Cashmore • Allen Saunders • Helen Snaith (appointed • Jenni Hircock • Alan Convery • Stephen Straw • Elliot Dixon • Gary Swift Branch Rules Working Group • Neil Freeman • Neil Thomson

• Ann Jones (chair) • George Ryall • Kevin Garside • Allan Wales • Eleanor Wade Energy sector executive committee • Neil Hope-Collins • Amy Calverly (secretary) • Richard Clatworthy • Dawn Davies Communications and campaigns (chair) • Elliot Dixon • Stephen Ackon • Neil Freeman NEC members • Eric Brunger • Kevin Garside • Eleanor Wade (chair) • Ann Jones • Ian Cashmore • Elinor Harrison • Andrew Pakes (secretary) • James Leppard • Paul Clarke • John Hind • Alan Grey • Andy Mooney • Catherine Collins • Steven Nicholson • Neil Hope-Collins • Steve Nicholson • Alan Convery • Simon Norris

50 • Prospect annual report 2019 – NEC, officers and sub-committees • John Price • Dik Third Nuclear development • Glyn Russell • Neil Thomson • Allen Saunders • Audrey Uppington group – relaunched as the • Stephen Straw • Allan Wales Nuclear Development sub- • Gary Swift • Joseph Wilkinson committee from June 2019

Equal opportunities • Audrey Uppington (chair) • Steven Nicholson • Ian Clark • Glyn Russell NEC members • Catherine Collins • Gary Swift • Freddie Brown (chair) • Ann Jones • Dawn Davies • Dik Third • Andrew Pakes (secretary) • Satnam Ner • Helen Edwards • Joseph Wilkinson • Christine Danniell • Nigel Titchen • Martin Greer • Richard Wilkinson • Neil Hope-Collins • Eleanor Wade • Susan Kirkby Lay reps • Amy Bishop – AWE • Claire Mullaly – BT Organisation, recruitment • Linda Ford – Scottish Northern Ireland and education (CORE) Research Establishments • Rod Owen – UKRI • Alan Gooden – • Liz Hardwick (Bectu) NEC members BT Leicester • Craig Marshall (chair) • James Leppard • Andrew Pakes (secretary) • Philip O’Rawe Finance and audit • Alan Grey • Alan Smith

• Ann Jones (joint chair) • Craig Marshall Lay reps • Eleanor Wade • Andy Mooney • Lloyd Collier – • Barbara Shepherd (joint chair) • Nigel Titchen Diamond Light Source – Sellafield (to June 2019) • Joanne Rowe (secretary) • Audrey Uppington • Mark Steele – BT • Honey Lansdowne – BT • Christine Danniell • Tasos Zodiates • Sara Reilly – Historic (to June 2019) • Neil Hope-Collins England (from June 2019)

Health and safety Pensions NEC members • Gordon Hutchinson • Tom James NEC members (chair) • Ian Stewart • Audrey Uppington (chair) • Craig Marshall • Garry Graham • Neil Hope-Collins • Garry Graham • Satnam Ner (secretary) (secretary) • Nigel Titchen • James Henderson • Christine Danniell • Tasos Zodiates Lay reps • Steve Dickson • Richard Clatworthy Food and Rural Affairs • Tom James – Western Power Balbir Singh – BT Lay reps Distribution West Midlands • Tony Cox – Connect • Steve Crothers – UKRI • Ken Trapp – regional • Andrew Meadley • Catherine Donaldson National Grid • Keith Flett – BT – Western Power – EFRA • Lorna Evans • Peter Lewis – AWE Distribution • Mhairi Duffy – Health (representing the • Jeff Rowlinson – and Safety Executive YPN committee, Scottish regional • Brian Lewthwaite – from August 2019) Ministry of Defence • Tom Hares • Ben Pye – Environment, (Sadler’s Wells)

NEC, officers and sub-committees – Prospect annual report 2019 • 51 Science, engineering and Retired members group sustainability advisory committee national committee

NEC members • David Harding • Iain Findlay – South East – President • Neil Hope-Collins (chair) • Rebecca Cummings • Don Forrester – • Ray Arrowsmith – North West • Sue Ferns (secretary • Elinor Harrison Vice President • Peter Hedgcock – until September 2019) • James Leppard • John Atkinson – Northern Ireland • Garry Graham (secretary • George Ryall North East from October 2019) • John Jenkins – Avon • John Attree – South Valley (until 16/12/2019) Lay reps West Midlands • Stan Kordys – East Anglia • Martin Aylett – BT Natural Environment • John Augoustis • Nigel Marlow – South Adastral Park Research Council – CMMDI East Midlands • Philip Brown – Met Office • Marcus Swift – • Arthur Bavister – • Mike Moriarty – Southern • Aiden Dryden – Sellafield Limited Thames Valley • David Robinson – Environment, Food • Steve Collins – Diamond • George Betke – Yorkshire Central Southern and Rural Affairs Light Source • Michael Cobb – Avon • Andrew Ruffhead – • Ayoe Buus Hansen • Christophe Rau – Valley (from 17/12/2019) London Central – Met Office Diamond Light Source • Graham Clarkson • David Sim – • Andrew Meadley • Helen Mako-Yule – Met – Wales Scotland South – Western Power Office (from July 2019) • Paul Danneau – • Tom Smyth – East Distribution (to South West Midlands July 2019) • Paul Ellam – West • John Taylor – • Helen Snaith – Midlands Scotland North

52 • Prospect annual report 2019 – NEC, officers and sub-committees 14 Branches

Branch code Branch name Branch code Branch name ALSE Arqiva London and the South East AEH Arts and Entertainment STMAN Arqiva managers 1ATH Aberdeen theatres, freelance and live events ARQN Arqiva North S094 ABL ARQNE Arqiva North England V601 Accenture ARQNS Arqiva North Scotland M187 Adas ARQNI Arqiva Northern Ireland D330 AGCS - retired members group AQREB Arqiva rigging engineers C009 Air Traffic Control Officers ARQSS Arqiva South Scotland C011 Air Traffic Systems Specialists ARQSW Arqiva South West V602 Airwave ARQWWE Arqiva Wales and West England ALJAZE Al Jazeera International AWDB Arqiva Warwick and Daventry ATGW Ambassadors theatre group Woking ARTBR Art department K026 AMEC Foster Wheeler plc ARTEC Art technicians ANBR Animation and new media V604 Asidua APMAN Apollo Manchester ADS Assistant directors V603 Apsolve APTN Associated Press television news F181 Archaeologists J258 Association of Guernsey Civil Servants ARQC Arqiva Central C286 Association of Licensed Aircraft Engineers AQCEB Arqiva climbing engineers branch M741 Association of School and College Lecturers CRCT Arqiva Crawley Court V605 AT&T EMOOR Arqiva Emley Moor

Branches – Prospect annual report 2019 • 53 Branch code Branch name Branch code Branch name J285 Atlas Elektronik UK ltd BBCSE BBC South East C204 Aviation BSLB BBC Studios London D326 Avon Valley retired members group MAILS BBC Swiss post branch J124 AWE CLET BBC Technology London 1AYR Ayrshire theatres, freelance and live events BBCTL BBC Television London C176 Babcock Aerospace BBCW1O BBC W1 operations J199 Babcock DCTT V720 BBC Weather C236 Babcock DSG BBCGNB BBC World Service S219 Babcock Marine and Technology (Clyde) WTVP BBC Worldwide TV and publishing J243 Babcock Marine Training BBCYL BBC Yorkshire and Lincs S288 Babcock MCD Offshore BBCY BBC Yorkshire C733 Babcock MCS Onshore E731 BEIS C715 Babcock RSME BELGE Belfast general SKELT Babcock Skelton BGOH Belfast Grand Opera House N465 BACM 3COV Belgrade theatre J276 BAE Surface Ships J754 Berks, Bucks and Oxfordshire Wildlife Trust K133 BAE Systems - Global Combat Systems NFT BFI Southbank H749 Baglan Bay power station APBIR Birmingham Alexandra theatre BANGO Bangor 3BHT Birmingham Hippodrome BXST Baxter Storey BMREP Birmingham rep theatre ABERD BBC Aberdeen BRBH Birmingham royal ballet ATOS BBC Atos BLOOM Bloomberg TV BIRM BBC Birmingham and West Midlands BOOM Boomerang BRIST BBC Bristol and West C735 Bournemouth international airport ltd CAR BBC Cardiff BAC Brewery Arts Centre BBCCAV BBC Caversham BRDOME Brighton Dome and festival BBCCGB BBC contractors general 4BRI Bristol BBCNM BBC Digital London H743 Bristol Zoo BBCEA BBC East E042 British Board of Agreement BBCEM BBC East Midlands F006 British Library EDINB BBC Edinburgh F192 British Museum ESPG BBC Engineering studios post group E214 British Veterinary Association BFOB BBC finance and operations N722 Bronte Museum GLAS1 BBC Glasgow no 1 T502 BT Adastral Park A HIGH BBC Highland T503 BT Adastral Park B BBCH BBC T504 BT Adastral Park C BBCIM BBC Immediate media T505 BT Birmingham BBCJC BBC Interserve London T506 BT Brentwood BBCLL BBC London T507 BT Brighton LLAB BBC London library/archive T555 BT Brunel BBCMNW BBC Media City and North West T508 BT Central London HQ BBCMB BBC Millbank T509 BT Cornwall and Plymouth BBCNBO BBC Newsgathering T510 BT Coventry BBCNBC BBC Newsroom T511 BT Development Belfast NEWCUM BBC North East and Cumbria T512 BT Devon and Somerset PLYM BBC Plymouth and South West T515 BT DP Harmondsworth BPSM BBC policy strategy and marketing T516 BT East Essex KINGW BBC R&D T517 BT East of Scotland BBCRMO BBC Radio and music operations London T519 BT Leicester BRMB BBC Radio and music production T521 BT London Central East and South BBCROB BBC Radio obs branch T522 BT London East BBCSOT BBC South T518 BT London North

54 • Prospect annual report 2019 – Branches Branch code Branch name Branch code Branch name T523 BT London North East CINLSE Cinemas London T525 BT London Southern CINNEA Cinemas North East and Cumbria T526 BT London West CINNO Cinemas North West T527 BT London West Central CINSC Cinemas Scotland T528 BT Manchester and district CINWW Cinemas Wales T520 BT Mersey Dee and area DART Civic Theatre Darlington T530 BT Mid-Yorkshire J249 Civil Nuclear Police Authority T531 BT Milton Keynes BACC Clearcast T501 BT MOD contract V350 CMD Greater London East and Essex T532 BT Newcastle and Middlesbrough V351 CMD Greater London West T533 BT North Anglia V352 CMD London central T534 BT North Downs V353 CMD Midlands Wales and West T535 BT North of Scotland V354 CMD North of England T536 BT Northern Ireland V355 CMD Scotland and Northern Ireland T537 BT Nottingham V356 CMD South T538 BT Oswestry D316 CMMDI retired members group T539 BT Overseas E707 College of Policing T540 BT Peterborough V607 Computacenter T541 BT Radianz CWBR Costume and Wardrobe T542 BT Senior managers K291 Crown Commercial Services T529 BT Shrewsbury V250 CSC T545 BT South Wales CTSH CTS holding branch T544 BT South Yorkshire CURZH Curzon cinemas T556 BT Sport PHOE Daisy IT T546 BT Stoke on Trent C714 Defence Electronics and Components Agency T547 BT Suffolk C264 Defence Equipment and Support T550 BT Thames and Wey Valley C736 Defence Services T551 BT Wessex RAD Deluxe London T552 BT West Midlands E064 Dental Reference Board T553 BT West of Scotland E017 Department for Education T554 BT West Pennines E145 Department for Work and Pensions E200 Building Research Establishment E063 Department of Health C012 CAA DDSTLC Devon, Dorset and Somerset TLC J015 Cab International H132 Devonport Royal Dockyard E069 Cabinet Office/Treasury E188 Department for Transport CABSA Cable & Satellite H254 Diamond Light Source CWWH Cable and Wireless DIGHO Digital CAMBR Camera department E217 Disability Analysts H086 Cangen treftadaeth cymru/Wales Heritage E732 DIT V630 Capita CMD M719 DNV GL CPR Capital Radio S282 Dounreay E711 Care Quality Commission N404 Drax Power K283 Cavendish Nuclear C202 Defence Science and Technology Laboratory CBSO CBSO 1DUN Dundee theatres, freelance and live events D321 Central Southern retired members group M436 E.on UK H756 Centre for Ecology and Hydrology K414 EA technology ltd N410 Centrica EA East Anglia Freelance GRIBR Certified grips and crane techs D317 East Anglia retired members group M430 Certsure EM East Midlands Freelance CHF Channel Four M245 East Midlands airport C717 Chatham House D318 East Midlands retired members group CINMI Cinemas East and West Midlands 3EMT East Midlands theatres, leisure and live events

Branches – Prospect annual report 2019 • 55 Branch code Branch name Branch code Branch name EENDS Eastenders S226 historic environment Scotland 3EAC Eastern counties E065 Home Office F457 EDF Energy E274 Housing, Communities and Local Government 1EDN Edinburgh theatres, freelance and live events V614 HP N701 Education and Children’s Services Group V628 Huawei E001 Environment, Food and Rural Affairs 3HUL Hull theatres K459 Electricity North West H111 Hydrographic Office MERBR Encompass London IAWF IAWF WOOFE Encompass Woofferton IBH IB K423 Engie IMID IB Midlands radio/cable F744 English Heritage IRE IB radio/cable Ireland 5ENM English National Opera managerial H728 IBERS ENB English National Ballet 12PMS ICA 5ENO English National Opera IWHS Ideal World home shopping H164 Environment Agency ILL ILR London N463 EP UK Investments (EPUKI) INW ILR North West I437 EPH F221 Imperial War Museums V608 Ericsson Field Services organisation ITFC Independent TV facilities cen V609 Ericsson Managed Services non-recognised V615 Inmarsat ETLCH Essex TLC E078 Insolvency Service ECI European Captioning Institute N458 Intergen (UK) Ltd V611 Everything Everywhere K738 International Nuclear Services C751 Exeter airport J165 Interserve FALPDH Fashion assistants LPD holding J259 Inutec ltd FABR Flm artistes 1INV Inverness theatre, freelance and live events J721 Fire Leaders Association K716 Isle of Man health MPTC M704 Fire Service College D331 Isle of Man retired members group FSEC First Security London K298 Isle of Man, Whitley H730 Flybe cabin crew K272 Isle of Man, general branch E278 Food Standards Agency K709 Isle of Man social care NJC C128 Foreign and Commonwealth Office (HQ) ITN ITN E019 Forestry Commission ANN ITV Anglia S747 Forestry Scotland BOR ITV Border N417 Greedom Group of companies CEB ITV Central Birmingham V612 Fujitsu Telecommunications CEN ITV Central Nottingham GSHB Games Scotland holding branch GDM ITV Granada E003 GE Healthcare Biosciences (amersham plc) LWT ITV LWT C294 GIP MERS ITV Meridian GCHB Glasgow Cineworld ITVSEC ITV Security CSGL Glasgow Life TYN ITV Tyne Tees S162 Glasgow Prestwick International airport HTC ITV Wales 1GLT Glasgow theatres, freelance and live events HTB ITV west GLYND Gyndebourne Opera YOR ITV Yorkshire E062 Government Actuary’s Department S036 James Hutton Institute K137 Government Officers’ Association J290 JCSA GPN Grampian TV J425 Jersey Electricity J419 Guernsey Electricity E238 JNCC HQ1 Headquarters no 1 N729 John Innes Centre K050 Health and Safety Executive KENPAB Kennington Park C182 Heathrow Airport Ltd KINGSP kings place music foundation S227 Highlands and Islands Airports Ltd V616 Kingston Communications F194 historic england LABSG Labs general

56 • Prospect annual report 2019 – Branches Branch code Branch name Branch code Branch name N268 Land Instruments H467 MVV Environment J240 Landmarc Support Systems M151 NUMA 3LGT Leeds Grand theatre K303 North West/North Wales regional branch 3WYP Leeds Playhouse NFTS National Film/TV school C718 Leidos K703 National Football Museum J153 LGC S230 National Galleries of Scotland LTECH Lighting technicians F260 National Gallery MERSEY Lime pictures M429 National Grid LMT Liverpool and Merseyside theatres S232 National Library of Scotland APLIV Liverpool Empire theatre M198 National Lottery Community Fund NLMB Locations department K158 National Museums Liverpool R306 London and South East regional S231 National Museums Scotland LALHB London arts and leisure K008 National Nuclear Laboratory D323 London Central retired members group H755 National Oceanography Centre E428 London Energy J155 National Physical Laboratory LIFS London Film School F708 National Portrait Gallery London Fire and Emergency Planning 5NAT National Theatre E271 Authority H220 National Trust LLEH London live events S205 National Trust for Scotland LTHB London theatres and freelance NVA National visual artists LUCH London union of crew F007 Natural History Museum LVTEC London venue technicians H705 Natural Resources Wales K281 Low Level Waste Repository Ltd – Drigg HOLD New filmmakers LOWRY Lowry Centre APOXF New Oxford theatre PRODG London Production Division NTC New Theatre Cardiff C734 Lufthansa Technik NVHRT New Victoria Hall and Regent Theatre BELF Lyric theatre Belfast 3NVT New Victoria theatre K408 Magnox Nuclear 2NTR Newcastle Theatre Royal J289 Magnox South sites NFTVA NFTV archives MFT Malvern festival theatres V631 NHS Digital MUTV Manchester United TV N727 NIAB EMR Ltd K617 Manx Telecom I449 NIE K424 Manx Utilities North East and Cumbria leisure and live 2NECL 04-MAY Mayflower theatre events MHBR Media hair and makeup 2NECT North East and Cumbria theatres MEDPRO Medical professionals N302 North East regional branch K251 Menter Mon D314 North East retired members group H115 Met Office WN North Wales Freelance C070 Metropolitan Police 4WN North Wales theatres, leisure and live events M301 Midlands regional branch NW North West Freelance F710 Ministry of Justice 2NWL North West leisure and live events J191 Mirion Technologies D313 North West retired members group J024 MLCS Ltd 2NWT North West theatres C104 MOC: Air N Northern Freelance C143 MOD: Defence Infrastructure Organisation IN Northern Ireland Freelance C112 MOD: Defence Training and Education I304 Northern Ireland regional branch C105 MOD: Fire Service Officers D312 Northern Ireland retired members group C287 MOD: Head Office and Corporate Services 1NIR Northern Ireland TLC C239 MOD: Land S225 Northern Lighthouse Board C270 MOD: Navy N431 Northern Powergrid C263 MOD: UKSTRATCOM 2NOR Northern Stage theatre S746 Moredun M748 Norwich city airport F025 Museum of London 3NPT Nottingham Playhouse

Branches – Prospect annual report 2019 • 57 Branch code Branch name Branch code Branch name 3NTR Nottingham Royal Centre J456 Rolls Royce M466 NQA S131 Rosyth Royal Dockyard NTLFE NTL field engineers J725 Rothamsted Research REIBX NTL holding N248 Royal Armouries NTLNET NTL Networks 5RAH Royal Albert hall K257 Nuclear Decommissioning Authority S229 Royal Botanic Garden Edinburgh J211 Nuvia Limited E032 Royal Botanic Gardens V077 Ofcom H033 Royal Mint OFCOM Ofcom F212 Royal Museums Greenwich J072 Office for National Statistics 5ROH Royal Opera House K046 Office for Nuclear Regulation ROHTM Royal Opera House tech managers M267 Office of Rail and Road 3STR Royal Shakespeare Company OVHB Old Vic RNEB Runners and new entrants 3ONT Opera North H422 RWE J073 Ordnance Survey SCF S4C H150 Ortho-Clinical Diagnostics 5SWT Sadlers Wells theatre OVS Overseas SAMS – Scottish Association for Marine S750 Science D329 Overseas retired members’ group F189 Science Museum Group OXPL Oxford Playhouse 1SCO Scotland leisure E074 Parliamentary D309 Scotland North retired members group PERTH Perth theatres, freelance and live events S305 Scotland regional branch H292 Pharmaron UK (Quotient) D310 Scotland South retired members group PHHB Picturehouse central S177 Scotland’s Rural College PHCEH Picturehouse Crouch End S438 Sottish and Southern Energy PHEDH Picturehouse East Dulwich S706 Scottish football referees HPIHO Picturehouse Hackney SC Scottish Freelance PUHB Picturehouse UK S037 Scottish Government PIN Pinewood group S161 Scottish Natural Heritage PFHOLD Pitlochry festival theatre S206 Scottish Parliament H299 Planning Inspectorate S440 Scottish Power PLSBR Plasterers S228 Scottish Prison Service PCTLC Plymouth and Cornwall TLC SCT Scottish TV PPFBR Post production and facilities D325 South East England retired members group N186 Prison service D322 South East Midlands retired members group PRSUP Production K280 Sellafield Limited TRANHB Production transport J293 Serco FSE/PME CHAP Professional chaperones and tutors J099 Serco Marine PRPBR Props F208 Serious Fraud Office J027 Public Health England SERP Serpentine Gallery J172 Qinetiq BBCSUT Servest w1 N726 Quadram Institute Bioscience CLUB Servest w12 5HOR Queens theatre Hornchurch SCBR Set crafts RTSBR Racetech SGTH Shakespeare’s Globe theatre RADIO Radio SIS SIS K737 Radioactive Waste Management SKYDUN Sky Dunfermline CPHB RBM Chiswick Park SKYLIVING Sky Livingston NOTC RBM Northern transmissions centre SKYLONDON Sky London K753 RBSL Rheinmetall SKYREG Sky regions BBCBRD Red Bee Media (Ericsson) SKYSW Sky South Wales J180 Ricardo Energy and Environment STU Soho film lab RIGBR Riggers I460 Soni RITZY Ritzy cinema V618 Sopra Steria

58 • Prospect annual report 2019 – Branches Branch code Branch name Branch code Branch name SDBR Sound MTV Viacom SETLCH South East TLC F213 Victoria and Albert museum STLCH South TLC BELLS Virgin Media Bellshill WS South Wales Freelance NTLMAN Virgin Media Manchester 4SWTL South Wales theatres, leisure and live events R308 Virtual regional branch D328 South West retired members group VFXH Visual effects H307 South West/South Wales regional branch V626 Vodafone SWE South West Freelance H246 Wales Audit Office IS Southern Ireland Freelance WMC Wales Millennium Centre D327 Southern retired members group D311 Wales retired members group SFXBR Special effects WDTB Walt Disney theatrical SPEC Spectrum Radio WSHBH Watershed Bristol F702 Sports professionals H087 Welsh Government C088 SSVC 4WNO Welsh National Opera STGBR Stagehands 5WECT West End commercial theatres C742 Stansted WM West Midlands Freelance F021 Stationery Office D319 West Midlands retired members group R360 Students 3WMT West Midlands theatre, leisure and live events 2SUN Sunderland theatres WTLCH West TLC V606 Sure telecoms WE Western Freelance D320 South West Midlands retired members group M451 Western Power Distribution V619 Tata consultancy services K284 Westinghouse F247 Tate Gallery M723 WHRI – Warwick V620 Tech Mahindra WOODN Wood Norton TEC Technicolor H085 WRC V621 Telefonica UK North East WPDB Writers producers and directors V622 Telefonica UK North West M169 WS Atkins V623 Telefonica UK Scotland and Northern Ireland V629 Yell V624 Telefonica UK South YH Yorkshire and Humberside Freelance M166 Telent Technology Services Ltd APYOR York Grand Opera House D324 Thames Valley retired members group 2YOT York theatre FARM The Farm Group Yorkshire and Humberside leisure and live YHLL events F241 The National Archives YHTB Yorkshire and Humberside theatres J724 The Pirbright Institute D315 Yorkshire retired members group N273 TQ 5YVT Young Vic theatre E201 Transport for London E039 Trinity House F040 Trustee Museums and Galleries H079 UK Intellectual Property Office F416 UK Power Networks H739 UK Research and Innovation J004 UKAEA J190 UKAS ULS Ulster TV UGRPBR Uncertified grips and crane techs M745 Uniper K447 United Utilities F269 Universities UK J031 University of Greenwich K178 Urenco E067 Valuation Office Agency M434 Veolia

Branches – Prospect annual report 2019 • 59 PAY PENSIONS SEX DISABILITY RACE LGBT+ GENDER NEURO- DIVERSITY SUPPORT EOUALITY. bectu.org.uk/join

Dignity at work.

60 • Prospect annual report 2019 – Branches 14 Finance

membership base. and national conferences are held in Introduction alternate years with the next National However, our cost of operations has also Conference being held in May 2020 in increased, rising from £22,853,000, to Summary position Bournemouth. £23,394,000 an increase of £541,000 Subscription income remained during 2019. Local democratic, organising strong during 2019, with an increase and education of £372,000. While this increase is lower than it had been in 2018, it still means our operating Costs reduced from £1,304,000 in With no increase in subscription rates income is insufficient to cover our 2018 to £1,073,000 in 2019 due to since January 2018, the growth in operating costs. spending by branches and sections income has come from an increase in returning to 2017 levels. our membership base. Our operating deficit slightly worsened during 2019, going from £1,292,000 to Employment costs Total membership has grown during £1,319,000. the year by 1,645 to 145,510. Working Costs rose from £15,943,000 in 2018 members have grown still further Increases in operating expenditure to £16,756,000 in 2019. Almost all from 118,107 at the start of the year in 2019 can be seen in the following of this increase related to staff pay to 120,399 at the end of December – areas: rises during the year: a contractual an increase of 2,292 members. Committees and conferences 3% increase for staff progressing incrementally through the pay grades While union membership across the Costs in 2019 were £406,000 versus and an overall 2% increase across the UK has stabilised since 2017, Prospect £695,000 in 2018. Sector conferences board. has gone further by increasing its

Finance – Prospect annual report 2019 • 61 Property costs investment portfolio to ensure we have • Winning for members the right mix of income versus capital • Enabling our staff Costs reduced in 2019 going from growth assets. £1,637,000 in 2018 to £1,564,000. • Sound finance The largest variance related to the While our investment portfolio had • Enabling members relocation of our Chertsey office in significantly increased at the end of • Process improvement and digital late 2018 resulting in lower business the year, the three defined benefit delivery. rates for the year. pension schemes valuation have worsened by £1,878,000. Administration and other supplies Risks This is due to the historically low levels Costs increased from £1,805,000 in of returns on government gilts, which As reported last year, the main 2018 to £1,915,000. The additional are used as a proxy to value the long- risk facing the union is the inherent spend related to IT costs with term liabilities of pension funds. uncertainty surrounding our three spending on our new brand, website defined benefit pension schemes. development and the work to Overall, despite the slightly worsening At the end of the year the liabilities initiate the customer relationship operating deficit, with the significant calculated under FRS 102 accounting management (CRM) project. increase in the market value of our rules were as follows: investment portfolio and other assets Benefits to members Prospect remains in a strong financial 2019 2018 position with a healthy balance sheet. Benefits to members Increased from Prospect Pension £5,871,000 £6,137,000 £1,469,000 to £1,681,000 during 2019, While more can always be done, we Scheme most of which is accounted for by an must congratulate ourselves and all Bectu increase in the costs of legal fees on our members for their hard work and Pension £8,356,000 £6,866,000 behalf of our members. dedication in maintaining the union’s Scheme financial position. Investment income Connect Pension £15,995,000 £14,598,00 Our income from investment Future plans Scheme operations increased during 2019, Total £30,222,000 £27,601,000 rising from £783,000 in 2018 to 2019 was as predicted a challenge £1,072,000 in 2019. financially, with costs inevitably All three defined benefit schemes are increasing and with no possibility of due for a triennial valuation in the next Other non-cash items increasing our subscription revenue twelve months, with a fifteen month The significant uplift in the market value by increases in the rates our members negotiation period that follows from of our investments at 31 December has pay following a decision at conference the triennial valuation date. meant a credit to our accounts at the in 2018. Bectu’s triennial valuation was at 31 year-end of £4,906,000 – a complete We have, and will continue, to review October 2019; Connect is at 1 July turnaround from the fall in investment all discretionary spending to ensure 2020 with Prospect at 31 December values at the end of December 2018. we are delivering the best value for our 2020. Our investments have risen in value from members. With historically low gilt yields, we £32,834,000 to £37,928,000 at the end We have significantly improved the could be faced with calls for either of the year. way we communicate with members additional deficit contributions However in accordance with accounting and launched the new brand earlier in or increases in the employer guidelines, this is a reflection of the the year. contributions or both, and from any value at the balance sheet date and one of the schemes or all three. We launched a new change will not reflect the value now nor in the programme in early 2020 following It is vital therefore that we retain our future, as investments are subject to approval at our NEC in September. healthy balance sheet so we are able changes over which we have little or no Called Ambition – delivering for our to manage this risk and maintain our control. members, five separate streams will services to our members. We are currently reviewing our look at:

62 • Prospect annual report 2019 – Finance Prospect accounts 2019

INCOME Income Subscriptions £21,656,000 £23.148m Investment Income £814,000 Other income from members £420,000

Rental income £163,000

Other income £95,000

TOTAL INCOME £23,148,000

EXPENDITURE Employment costs £16,756,000

Expenditure Admin and other supplies £1,915,000 £23.395m Property costs £1,564,000 Benefits to members £1,681,000

Local democratic organisation and education £1,073,000

Committees and conferences £406,000

TOTAL EXPENDITURE £23,395,000

YEAR END ADJUSTMENTS Pension scheme FRS 102 -£2,621,000

Change in fair value of investments £4,906,000 Reserves SURPLUS FOR THE YEAR £2,039,000 £24.549m

RESERVES General fund £23,917,000

Political fund £632,000

TOTAL £24,549,000

NET ASSETS Investments £37,928,000 Net assets Fixed Assets (inc land and buildings) £14,096,000 £24.549m Current assets £4,756,000 Current liabilities -£2,009,000

Pension schemes’ liabilities -£30,222,000

BALANCE SHEET TOTAL £24,549,000

Finance – Prospect annual report 2019 • 63 Statement of 1992 (Amended). It is also responsible under those standards are further for safeguarding the assets of the described in the Auditor’s responsi- responsibilities of the Union and hence for taking reason- bilities for the audit of the financial able steps for the prevention and statements section of our report. National Executive detection of fraud and other irregu- We are independent of the Union in Committee larities. accordance with the ethical requirements that are relevant to the audit The legislation relating to trade unions Report of the of the financial statements in the UK, requires the Union to submit a return including the FRC’s Ethical Standard, for each calendar year to the Certi- independent auditors and we have fulfilled our other ethical fication Officer. This return contains to the members responsibilities in accordance with financial statements that must give these requirements. We believe that a true and fair view of the state of of Prospect the audit evidence we have obtained affairs of the Union at the year end is sufficient and appropriate to pro- and of its transactions for the year Opinion vide a basis for our opinion. then ended. The financial statements We have audited the financial Conclusions relating set out on the following pages have statements shown on pages 66-83 to going concern been prepared on the same basis and of Prospect [“The Union”] for the are used to complete the return to the We have nothing to report in respect year ended 31 December 2019 which Certification Officer. of the following matters in relation comprise the Income and Expenditure to which the ISA’s (UK) require us to The requirement to prepare financial Account General Fund, the Income and report to you where: statements that give a true and fair Expenditure Account Political Fund, • The National Executive view is the responsibility of the Nation- the Balance Sheet, the Combined Committee’s use of the going al Executive Committee. The National Income and Expenditure Account, concern basis of accounting in Executive Committee is responsible the Statement of Cash Flows and the preparation of the financial for preparing financial statements in Notes to the Financial Statements, statements is not appropriate; or accordance with applicable law and including a summary of the significant United Kingdom Accounting Stan- accounting policies. The financial • The National Executive Committee dards (United Kingdom Generally Ac- reporting framework that has has not disclosed in the financial cepted Accounting Practice), including been applied in their preparation is statements any identified material Financial Reporting Standard 102. In applicable law and United Kingdom uncertainties that may cast so doing, the National Executive Com- Accounting Standards, including significant doubt about the Union’s mittee is required to: Financial Reporting Standard 102, ability to continue to adopt a going concern basis of accounting for a • Select suitable accounting policies The Financial Reporting Standard period of at least twelve months and then apply them consistently. applicable in the UK and Republic of from the date when the financial • Make judgements and estimates Ireland (United Kingdom Generally statements are authorised for that are reasonable and prudent. Accepted Accounting Practice). issue. • State whether applicable In our opinion the financial state- accounting standards have been ments: Other information followed, subject to any material • Give a true and fair view of the The National Executive Committee departures being disclosed state of the Union’s affairs as at 31 is responsible for the other infor- and explained in the financial December 2019 and of its income mation. The other information statements. and expenditure for the year then comprises the information included • Prepare the financial statements ended; and in the annual report, other than on the going concern basis unless it • Have been properly prepared in the financial statements and our au- is inappropriate to do so. accordance with United Kingdom ditor’s report thereon. Our opinion The National Executive Committee Generally Accepted Accounting of the financial statements does is responsible for keeping proper Practice. not cover the other information accounting records and establishing and, except to the extent otherwise Basis for opinion and maintaining a satisfactory system explicitly stated in our report, we do of internal controls over its account- We conducted our audit in accor- not express any form of assurance ing records and transactions in order dance with International Standards conclusion thereon. to comply with the Trade Union and on Auditing (UK) (ISAs (UK)) and In connection with our audit of the Labour Relations (Consolidation) Act applicable law. Our responsibilities financial statements, our responsi-

64 • Prospect annual report 2019 – Finance bility is to read the other information from material misstatement, whether the Union’s members as a body, for our and, in doing so, consider whether due to fraud or error. audit work, for this report, or for the the other information is materially opinions we have formed. In preparing the financial state- inconsistent with the financial statements, the National Executive Com- ments or our knowledge obtained in mittee is responsible for assessing the audit or otherwise appears to be HW FISHER the Union’s ability to continue as a materially misstated. If we identify Chartered Accountants going concern, disclosing, as applica- such material inconsistencies or ap- Statutory Auditor ble, matters related to going concern parent material misstatements, we Date 1-Apr-20 and using the going concern basis are required to determine whether of accounting unless the National Acre House there is a material misstatement in Executive Committee either intends 11/15 William Road the financial statements or material to liquidate the Union or to cease London NW1 3ER misstatement of the other informa- operations, or have no realistic alter- tion. If, based on the work we have native but to do so. performed, we conclude that there is a material misstatement of this Auditor’s responsibilities for the other information we are required to audit of the financial statements report that fact. Our objectives are to obtain reason- We have nothing to report in this able assurance about whether the regard. financial statements as a whole are free from material misstatement, Matters on which we are required whether due to fraud or error, and to report by exception issue an auditor’s report that includes The Trade Union and Labour Relations our opinion. Reasonable assurance (Consolidation) Act 1992 (Amended) is a high level of assurance, but is not requires us to report to you if, in our a guarantee that an audit conduct- opinion: ed in according with ISAs (UK) will • A satisfactory system of control always detect a material misstate- over transactions has not been ment when it exists. Misstatements maintained; or can arise from fraud or error and are • The Union has not kept proper considered material if, individually or accounting records; or in aggregate, they could reasonably be expected to influence the economic • The financial statements are not decisions of users taken on the basis of in agreement with the books of these financial statements. account; or • We have not received all the A further description of our respon- information and explanations we sibilities for the audit of the financial need for our audit. statements is located on the Finan- cial Reporting Council’s website at We have nothing to report in this https://www.frc.org.uk/auditors/ regard. audit-assurance. This description Responsibilities of the National forms part of our auditor’s report. Executive Committee Use of our report to the As explained more fully in the State- members of Prospect ment of Responsibilities of the Nation- This report is made solely to the al Executive Committee, the National Union’s members, as a body. Our Executive Committee is responsible audit work has been undertaken so for the preparation of financial that we might state to the Union’s statements and being satisfied that members those matters we are re- they give a true and fair view, and for quired to state to them in an auditor’s such internal control as the National report and for no other purpose. To Executive Committee determine is the fullest extent permitted by law, we necessary to enable the preparation do not accept or assume responsibility of financial statements that are free to anyone other than the Union and

Finance – Prospect annual report 2019 • 65 Income and expenditure account – general fund – year ended 31 December 2019

2019 2018 Note £’000 £’000 £’000 £’000

OPERATING INCOME

Subscriptions 21,656 21,284

Other Income from Members 420 277

22,075 21,561

OPERATING EXPENDITURE

Committees and Conferences 3 406 695

Local Democratic Organisation and Education 4 1,073 1,304

Employment costs 5 16,756 15,943

Property costs 6 1,563 1,637

Administration and Other Supplies 7 1,915 1,805

Benefits to Members 8 1,681 1,469

(23,393) (22,853)

OPERATING DEFICIT (1,318) (1,292)

Income from Investment Operations 9 1,072 783

(DEFICIT) AFTER INVESTMENT INCOME (246) (509)

Change in the Fair Value of Investments 13 4,906 (2,549)

SURPLUS/(DEFICIT) AFTER INVESTMENT 4,660 (3,058) OPERATIONS

OTHER ITEMS

Net pension scheme expenditure 10 (743) (946)

Exceptional Income 11 - 1,388

Exceptional Costs 11 - (456)

SURPLUS/(DEFICIT)FOR THE YEAR 3,917 (3,072)

OTHER COMPREHENSIVE INCOME

Actuarial (losses) gains on defined benefit pension 17 (1,878) 2,772 schemes

COMPREHENSIVE RESULT FOR THE YEAR 2,039 (300)

RESERVES AT THE BEGINNING OF THE YEAR 21,878 22,178

RESERVES AT THE END OF THE YEAR 23,917 21,878

66 • Prospect annual report 2019 – Finance Income and expenditure account – political fund – year ended 31 December 2019

2019 2018

£’000 £’000

OPERATING INCOME

Subscriptions 63 69

63 69

OPERATING EXPENDITURE (44) (85)

SURPLUS/(DEFICIT) FOR THE YEAR 19 (16)

POLITICAL FUND AT BEGINNING OF THE YEAR 613 629

POLITICAL FUND AT END OF THE YEAR 632 613

Combined income and expenditure account – year ended 31 December 2019

General Political Total Total Fund Fund 2019 2018

Note £’000 £’000 £’000 £’000

OPERATING INCOME 22,075 63 22,138 21,630

OPERATING EXPENDITURE (23,393) (44) (23,437) (22,938)

OPERATING (DEFICIT)/SURPLUS (1,318) 19 (1,299) (1,308)

Income from Investment Operations 9 1,072 - 1,072 783

Change in the Fair Value of Investments 13 4,906 - 4,906 (2,549)

SURPLUS/(DEFICIT) AFTER INVESTMENT 4,660 19 4,680 (3,074) OPERATIONS

OTHER ITEMS

Net pension scheme expenditure 10 (743) - (743) (946)

Exceptional Income 11 - - - 1,388

Exceptional Expenditure 11 - - - (456)

SURPLUS/(DEFICIT) FOR THE YEAR 3,917 19 3,938 (3,088)

OTHER COMPREHENSIVE INCOME 17 (1,878) - (1,878) 2,772

COMPREHENSIVE RESULT FOR THE YEAR 2,039 19 2,060 (316)

RESERVES AT BEGINNING OF THE YEAR 21,878 613 22,490 22,807

RESERVES AT END OF THE YEAR 23,917 632 24,549 22,491

Finance – Prospect annual report 2019 • 67 Balance sheet – year ended 31 December 2019

2019 2018

Note £’000 £’000 £’000 £’000

FIXED ASSETS

Tangible Fixed Assets 12 14,096 14,285

Investments 13 37,928 32,834

52,023 47,119

CURRENT ASSETS

Debtors and prepayments 14 2,306 2,080

Cash in bank and in hand 2,450 2,262

4,756 4,342

CURRENT LIABILITIES

Creditors and accruals 15 2,009 1,369

NET CURRENT ASSETS 2,747 2,973

NET ASSETS EXCLUDING PENSION

OBLIGATIONS 54,771 50,092

PROVISIONS FOR LIABILITIES

Pension Scheme Deficit 17 (30,222) (27,601)

24,549 22,491

Represented by:

RESERVES - GENERAL FUND 23,917 21,878

RESERVES - POLITICAL FUND 632 613

24,549 22,491

Approved for issue to the members on 19 March 2020

Mike Clancy General Secretary

C Marshall President

68 • Prospect annual report 2019 – Finance Cash flow statement – year ended 31 December 2019

2019 2018

£’000 £’000

Cash flows from Operating Activities

Surplus/(Deficit) after Investment Operations 4,679 (3,074)

Adjustments for:

Exceptional Costs - (456)

(Surplus)/Deficit on sale of investments (48) 72

Change in investment values (4,906) 2,549

Depreciation 616 695

Loss on sale of fixed assets 19 -

Movements in working capital:

Change in debtors (227) (94)

Change in creditors 639 253

Net cash used in generated from operations 771 (55)

Investing Activities:

Payments to acquire tangible fixed assets (502) (482)

Payments to acquire fixed asset investments (3,213) (3,031)

Receipts from sale of tangible fixed assets 59 3,439

Receipts from sale of fixed asset investments 1,861 1,326

Changes in cash deposits 1,212 (1,536)

Net cash flow from investing activities (582) (284)

Net increase/(decrease) in cash and cash equivalents 189 (339)

Cash balances brought forward 2,262 2,601

Cash balances carried forward 2,450 2,262

Finance – Prospect annual report 2019 • 69 Notes to the financial statements

National Executive Committee is 1.7 Depreciation 1. Accounting policies confident that the Union can continue Depreciation is provided on all as a going concern for a period of The financial statements have tangible fixed assets, except at least twelve months from the been prepared in accordance with freehold land, to write off the cost date of approval of these financial applicable accounting standards. less estimated residual value in statements. The National Executive The specific accounting policies equal annual instalments over the Committee has a reasonable adopted are set out below: estimated useful economic lives of expectation that the Union has the assets. The estimated useful adequate resources to continue in 1.1 Accounting convention economic lives are as follows: operation for the foreseeable future. The financial statements have been Freehold buildings 50 years prepared in accordance with FRS102 1.3 Subscriptions Furniture and fittings 10 years “The Financial Reporting Standard Subscriptions are accounted for on an Office equipment 4 years applicable in the UK and Republic accruals basis. of Ireland” (“FRS102”). The accounts IT Equipment 4 years have been prepared under historical 1.4 Rental income Motor vehicles are depreciated over cost convention with items recognised Rental income is accounted for on a 5 year period wth a residual value of at cost or transaction value unless an accruals basis and derived from 30% of cost. otherwise stated in the relevant notes properties classified within land and The gain or loss arising on the to the financial statements. buildings. disposal of an asset is determined Trade Unions are governed by the 1.5 Expenditure as the difference between the sale Trade Union and Labour Relations proceeds and the carrying value of (Consolidation Act) 1992 Amended. All expenditure in the accounts is the asset, and is recognised in the Under that Act the accounts of Trade inclusive of VAT where applicable. Income and Expenditure account. Unions are required to give a true and 1.6 Tangible fixed assets fair view. Therefore, the accounts 1.8 Pension costs of Trade Unions are prepared under Tangible fixed assets are initially The Union operates three defined FRS102. However, as a Trade Union measured at cost and subsequently benefit pension schemes, all of is not a company the Regulations measured at cost, net of depreciation which require contributions to be that form the basis of disclosures and any impairment losses. At each made to separately administered under FRS102 have been adapted as reporting date, the Union reviews the funds. The cost of providing benefits considered necessary to ensure the carrying amounts of its tangible fixed under the defined benefit plans is accounts give a true and fair view to assets to determine whether there is determined separately for each the members of the Trade Union. any indication that those assets have suffered an impairment loss. If any plan using the projected unit credit The Union is a public benefit entity. such indication exists, the recoverable method which attributes entitlement to benefits to the current period (to The financial statements have been amount of the asset is estimated in determine current service cost) and prepared in sterling, which is the order to determine the extent of the to the current and prior periods (to functional currency of the Union. The impairment loss (if any). determine the present value of the monetary amounts of these financial A small proportion of the land and defined benefit obligations) and is statements are rounded to the buildings within tangible fixed based on actuarial advice. nearest thousand. assets are let to tenants. The Union The net interest element is determined 1.2 Going concern generates income from letting agreements and hence a proportion by multiplying the net defined benefit As stated in note 20, the National of these properties are investment liability by the discount rate, at the Executive Committee has considered properties. However, due to the start of the period taking into account the effect of the Covid-19 outbreak. quantum of the amounts involved and any changes in the net defined benefit The National Executive Committee the disproportionate cost and effort liability during the period as a result considers that the outbreak is likely to involved, the Union has taken the of contribution and benefit payments. cause some disruption to the Union’s decision to not separately disclose The net interest is recognised in the business but does not believe that the proportion of properties owned income and expenditure accounts as these are likely to be significant. The and let to tenants. pension movement.

70 • Prospect annual report 2019 – Finance Remeasurements, compromising reversal of deferred tax liabilities or at the present value of the future actuarial gains and losses, the other future taxable income. receipts discounted at a market rate effect of the asset ceiling and the of interest. Deferred tax is calculated at the tax return on the net defined benefit rates that are expected to apply 1.14 Other financial assets liability (excluding amounts included in the period where the liability in the net interest) are recognised Other financial assets, including is settled or the asset is realised. immediately in other comprehensive investments in equity instruments Deferred tax is charged or credited in income in the period in which which are not subsidiaries, associates the income and expenditure account. they occur. Remeasurements are or joint ventures, are initially not reclassified to income and The Union has adopted a measured at fair value, which is expenditure in subsequent periods. reinvestment policy whereby all normally the transaction price. Such realised proceeds on the disposal assets are subsequently carried at The defined net benefit pension of investments are reinvested into fair value and the changes in fair asset or liability in the balance sheet other chargeable assets, thereby value recognised in the income and comprises the total for each plan eliminating any current tax liability expenditure account, except that of the present value of the defined and thereby the need for the investments in equity instruments benefit obligation (using a discount recognition of a deferred tax liability. that are not publically traded, and rate based on high quality corporate Where the proceeds are not fully whose fair value cannot be measured bonds), less the fair value of plan invested no current tax liability is reliably, are measured at cost less assets out of which the obligations considered likely to arise due to impairment. are to be settled directly. Fair value expenditure on provident benefits is based on market price information exceeding any chargeable gains that 1.15 Impairment of and in the case of quoted securities is financial assets might arise. the published bid price. The value of Financial assets, other than those a net pension benefit asset is limited 1.11 Cash and cash equivalents held at fair value through the income to the amount that may be recovered Cash and cash equivalents include and expenditure account, are either through reduced contributions cash in hand, deposits held on assessed for indicators of impairment or agreed refunds from the scheme. call with banks, other short-term at each reporting end date. Payments to defined contribution investments with original maturities Financial assets are impaired where retirement benefit schemes are of three months or less, and bank there is objective evidence that, as charged as an expense as they fall overdrafts. a result of one or more events that due. 1.12 Financial instruments occurred after the initial recognition 1.9 Corporation tax of the financial asset, the estimated Financial assets are recognised in the future cash flows have been affected. Corporation tax is payable on the Union’s balance sheet when the Union The impairment is recognised in the excess of interest income, rental becomes party to the contractual income and expenditure account. income and chargeable gains arising provisions of the instrument. on the disposal of properties and 1.16 Basic financial liabilities Financial assets are classified investments over expenditure on the into specified categories. The Basic financial liabilities, including provident benefits and reinvested classification depends on the nature trade and other payables, are initially chargeable gains for the year. and purpose of the financial assets recognised at the transaction price Provident benefits comprise of and is determined at the time of unless the arrangement constitutes a payments as set out in the rules of recognition. financing transaction. the Union, which relate to death Trade payables are obligations to pay 1.13 Basic financial assets benefit and legal assistance, for goods or services that have been and a proportion of the costs of Basic financial assets, which include acquired in the ordinary course of the administrating the Union in relation trade and other receivables and activity of the Union from suppliers. to those benefits. cash and bank balances, are initially Accounts payable are classified measured at transaction price as current liabilities if payment is 1.10 Deferred tax including transaction costs and are due within one year or less. Trade Deferred tax liabilities are generally subsequently carried at amortised payables are initially recognised at recognised for all timing differences cost using the effective interest transaction price and derecognised and deferred tax assets are recognised method unless the arrangement when, and only when, the Union’s to the extent that it is probable that constitutes a financing transaction, obligations are discharged, cancelled they will be recovered against the where the transaction is measured or they expire.

Finance – Prospect annual report 2019 • 71 1.17 Branches 1.20 Leases proceeds are not fully reinvested, no corporation tax liability is considered The transactions of the branches Assets held under finance leases likely to arise due to the availability during the period are included in and hire purchase contracts are of sufficient excess expenditure on these accounts as are the net assets capitalised and depreciated over the provident benefits. Accordingly in held directly by them at the balance period of the lease or the estimated the opinion of the management, sheet date. useful economic lives of the assets, the revaluation of properties and whichever is shorter. The finance investments does not give rise to a 1.18 Fixed asset investments charges are allocated over the period timing difference and to deferred tax of the lease in proportion to the Investments are a form of basic liabilities. financial instrument and are initially capital outstanding and are charged recognised at their transaction value to the income and expenditure 2.2 Key sources of and subsequently measured at their account. Rentals payable under estimation uncertainty fair value at the balance sheet date operating leases, including any lease The cost of defined benefit pension using the closing quoted market price incentives received, are charged to plans is determined using actuarial (where applicable). The income and the income and expenditure account valuations. The actuarial valuation expenditure account includes the on a straight line basis over the term involves making assumptions net gains and losses arising on the of the relevant lease. about discount rates, future salary revaluation and disposals throughout increases, mortality rates and the year. The Union does not acquire 2. Judgements future pension increases. Due to put options, derivatives or other the complexity of the valuation, the complex financial instruments. The and key sources of underlying assumptions and the main form of financial risk faced by estimation uncertainty long term nature of these plans, such the Union is that of volatility in equity estimates are subject to significant markets and investment markets due The preparation of the financial uncertainty. In determining to wider economic conditions, the statements requires management the appropriate discount rate, attitude of investors to investment to make judgements, estimates and management considers the interest risk, and changes in sentiment assumptions that affect the amounts rates of corporate bonds in the concerning equities and within reported for assets and liabilities as respective currency with at least AA particular sectors or sub sectors. at the balance sheet date and the rating, with extrapolated maturities amounts reported for revenues and 1.19 Realised gains and losses corresponding to the expected expenses during the year. However duration of the defined benefit All gains and losses are recognised to the nature of estimation means that obligation. The underlying bonds the income and expenditure account actual outcomes could differ from are further reviewed for quality, and as they arise. Realised gains and those estimates. those having excessive credit spreads losses on investments are calculated are removed from the population 2.1 Critical judgements as the difference between the sales bonds on which the discount rate is proceeds and their opening carrying Under HMRC rules affecting based, on the basis that they do not value or their purchase value if the taxation of trade unions, a represent high quality bonds. The acquired subsequent to the first corporation tax liability does not mortality rate is based on publicly day of the financial year. Unrealised arise on chargeable gains arising available mortality tables for the gains and losses are calculated as the from the disposal of properties and specific country. Future salary difference between the fair value at investments where such gains are increases and pension increases are the year end and their carrying value. reinvested into other chargeable based on expected future inflation Realised and unrealised investment assets in the same accounting period. rates for the respective country. gains and losses are separated The Union has adopted a policy Further details are given in note 17. between the surplus on investments whereby such chargeable gains are all and changes in market value in the reinvested, thereby eliminating any income and expenditure account. corporation tax liability. Where the

72 • Prospect annual report 2019 – Finance Notes to the financial statements year ended 31 December 2019

2019 2018

£’000 £’000

3 COMMITTEES AND CONFERENCES

National committees 125 132

National and sector conferences 281 563

406 695

4 LOCAL DEMOCRATIC ORGANISATION AND EDUCATION

Professional, departmental and other groups 136 152

Branches and sections 777 953

Education and training 160 199

1,073 1,304

5 EMPLOYMENT COSTS

Staff salary costs 14,097 13,296

Additional pension contributions 1,462 1,538

Travel, subsistence and mobile phones 727 711

Other staffing costs 469 398

16,756 15,943

6 PROPERTY COSTS

Rent, rates and service charges 701 788

Light and heating 147 132

Decoration, repairs and maintenance 182 136

Cleaning and security 214 245

Property depreciation 219 234

Insurance and health and safety 101 102

1,563 1,637

Finance – Prospect annual report 2019 • 73 Notes to the financial statements – year ended 31 December 2019 (continued)

2019 2018

£’000 £’000

7 ADMINISTRATION AND OTHER SUPPLIES

Equipment maintenance and repairs 112 153

Printing, stationery and postage 294 221

Telephone 225 166

IT costs 681 595

Other office services 125 115

Bank charges and collection of subscriptions 80 14

Research, publications and subscriptions 48 42

Editorial publishing and publicity 77 65

Legal, professional and audit fees 273 434

1,915 1,805

8 BENEFITS TO MEMBERS

Affiliations and donations 611 658

Members’ benefits 933 600

Recruitment and organisation 137 211

1,681 1,469

9 INVESTMENT INCOME

Investment income 814 671

Rental income 163 132

Surplus /(Deficit) on sale of investments 48 (72)

Other income 47 52

1,072 783

74 • Prospect annual report 2019 – Finance Notes to the financial statements – year ended 31 December 2019 (continued)

10 NET PENSION SCHEME PPS CPS BECTU Total EXPENDITURE 2019 2018 2019 2018 2019 2018 2019 2018

£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Current service cost (2,814) (2,753) (318) (356) (347) (431) (3,479) (3,540)

Administration costs (182) (198) (36) (40) (112) (96) (330) (334)

Contributions 2,187 2,170 692 590 917 868 3,796 3,628

(809) (781) 338 194 458 341 (13) (246)

Interest on scheme assets 2,561 2,355 359 325 594 525 3,514 3,205

Interest on scheme liabilities (2,708) (2,463) (753) (704) (783) (738) (4,244) (3,905)

Net interest on defined benefit (147) (108) (394) (379) (189) (213) (730) (700) liability

Net pension scheme (expenditure)/ (956) (889) (56) (185) 269 128 (743) (946) Income

11 EXCEPTIONAL ITEMS 2019 2018

£’000 £’000

Exceptional income - 1,388

Exceptional costs - 456

- 1,844

• Exceptional income for 2018 related to the sale of the Chertsey office. The income was calculated as the proceeds received less the carrying value. • Exceptional costs for 2018 related to staffing costs following the transfer of engagements of Bectu.

Finance – Prospect annual report 2019 • 75 Notes to the financial statements – year ended 31 December 2019 (continued)

12 TANGIBLE FIXED ASSETS Freehold land & Office Fixtures & IT Motor buildings equipment fittings equipment vehicles Total

£’000 £’000 £’000 £’000 £’000 £’000

COST

At 1 January 2019 15,758 274 124 1,485 894 18,535

Additions - 3 27 241 231 502

Disposals - - - - (229) (229)

At 31 December 2019 15,758 277 151 1,726 896 18,808

DEPRECIATION

At 1 January 2019 2,436 118 69 1,119 508 4,251

Charge for the year 219 60 9 231 94 613

Disposals - - - - (151) (151)

At 31 December 2019 2,655 178 78 1,350 452 4,713

NET BOOK VALUE

At 31 December 2019 13,102 99 73 376 445 14,096

At 31 December 2018 13,321 156 55 366 386 14,285

76 • Prospect annual report 2019 – Finance Notes to the financial statements – year ended 31 December 2019 (continued)

13 INVESTMENTS 2019

£’000

MARKET VALUE

At 1 January 2019 32,834

Additions 3,213

Disposal proceeds (1,861)

Net movement in cash deposits (1,212)

Surplus on sale of investments 48

Change in investment values 4,906

At 31 December 2019 37,928

Market Value Cost 2019

£’000 £’000

EQUITIES AND GILTS

Sarasin & Partners 650 754

Rathbone Investment Management 6,613 8,112

7,263 8,866

UNIT TRUSTS

Sarasin & Partners 13,463 16,705

Rathbone Investment Management 1,755 2,492

Trade Union Fund Managers 1,955 7,165

Aberdeen Multi Manager 1,062 1,459

18,235 27,821

BANK DEPOSITS

Sarasin & Partners 233 233

Rathbone Investment Management 544 544

777 777

UNQUOTED SHARES

Unity Trust Bank PLC 327 455

Other 9 9

336 464

26,611 37,928

As set out in the accounting policies, no provision has been made for deferred tax due to the reinvestment policy adopted by the union.

Finance – Prospect annual report 2019 • 77 Notes to the financial statements – year ended 31 December 2019 (continued)

14 DEBTORS 2019 2018

£’000 £’000

Trade debtors 1,282 1,335

Other debtors 541 308

Prepayments and accrued income 481 437

2,306 2,080

15 CREDITORS 2019 2018

£’000 £’000

Trade creditors 237 446

Other creditors 251 290

Other taxes and Social Security 926 349

Accruals and deferred Income 595 284

2,009 1,369

16 CONTINGENT LIABILITIES

The union is involved in numerous ongoing legal cases on behalf of its members, the outcomes of which are inevitably uncertain. Provision has been made for the estimated unbilled costs where the union considers that they may not be totally recovered.

78 • Prospect annual report 2019 – Finance Notes to the financial statements – year ended 31 December 2019 (continued)

17 STAFF PENSION SCHEMES

The union currently operates three defined benefit pension schemes for its employees: Prospect, BECTU and Connect. The assets for all of the schemes are held in trustee administered funds separate from the union’s finances. This note sets out the pension cost information required for Prospect to meet its pension obligations as specified under FRS 102. The accounting date to which these disclosures relate is 31 December 2019. The last full actuarial valuation of the pension schemes was carried out using the projected unit method on 1 July 2017 for the Connect scheme, which showed an actuarial deficit of £7.7m; at 31 December 2017 for the Prospect scheme , which showed an actuarial deficit of £4.8m; and 31 October 2016 for the Bectu scheme with an actuarial deficit of £5.6m. The next full valuation is scheduled for 1 July 2020 for the Connect scheme, 31 December 2020 for the Prospect scheme and 31 October 2019 for the Bectu scheme. There was an understatement from prior years, in respect of the actuarial calculation of the FRS 102 pension deficit for the Connect Pension Scheme, which has been adjusted for a misstatement from prior years. The calculation for benefits paid for in 2017 and 2018 was understated. This was due to a group of pensioners being paid via a separate payroll who were not included in the accounting cash flow data used. The combined figure for both 2017 and 2018 was £472,000 and has been shown on the analysis of FRS 102 pension movement currently shown on page 80. Included within current service costs are the following amounts relating to GMP equalisation: PPS £107k (2018: £96k); CPS £61k (2018: £53k); and Bectu £94k (2018: £83k), totalling £262k (2018:£233k). Regular employer contributions to the Prospect schemes in 2020 are estimated to be £1.4m – £0.4m to Prospect; £0.5m to the Connect scheme and £0.5m to the Bectu scheme.

The union’s contributions for PPS CPS BECTU the year were as follows: 2019 2018 2019 2018 2019 2018

£’000 £’000 £’000 £’000 £’000 £’000

2,147 2,170 678 590 942 868

Outstanding contributions at the year end were: 2019

£’000

PPS 373

CPS 55

BECTU 79

507

The main financial assumptions used in all three schemes were: PPS / CPS / BECTU

2019 2018

% %

Rate of increase in pensionable salaries 2.7 2.9

Rate of increase in pensions in payments 3.1 3.3

Discount rate for scheme liabilities 2.1 2.9

Rate of inflation – RPI 3.2 3.4

Rate of inflation – CPI 2.2 2.4

Finance – Prospect annual report 2019 • 79 Notes to the financial statements – year ended 31 December 2019 (continued)

17 STAFF PENSION SCHEMES (CONTINUED)

Mortality assumption

The mortality assumptions are based on standard mortality tables which allow for future mortality improvements. The assumptions are that a member currently aged 65 will live on average for a further 22.2 years (PPS and CPS) and 21.5 years (Bectu) if they are male; and for a further 24.5 years (PPS), 24.3 years (CPS) and 23.5 (Bectu) if they are female.

Net liabilities of the schemes

The net pension liabilities recognised in the union’s balance sheet as at 31 December 2019 is as follows: PPS CPS BECTU Totals 2019 2018 2019 2018 2019 2018 2019 2018 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Diversified growth 17,520 15,838 6,044 5,486 - - 23,564 21,324 funds Equities 33,642 26,664 6,375 4,318 6,878 5,881 46,895 36,863 Bonds and gilts 39,448 37,421 2,090 1,957 12,381 11,463 53,919 50,841 Property 10,352 10,155 - 160 3,439 3,289 13,791 13,604 Cash/other 127 234 80 607 229 224 436 1,065 Total market value 101,089 90,312 14,589 12,528 22,927 20,857 138,605 123,697 of assets

Present value of (106,960) (96,449) (30,584) (27,126) (31,283) (27,723) (168,827) (151,298) liabilities

Scheme surplus/ (5,871) (6,137) (15,995) (14,598) (8,356) (6,866) (30,222) (27,601) (Deficit)

The return on scheme assets for the year was a gain of £11.7m (2018: loss of £3.4m) for PPS; a gain of £1.9m (2018: loss of £691,000) for CPS; and a gain of £2.1m (2018: loss of £161,000) for BECTU.

Analysis of FRS PPS CPS BECTU Totals 102 pension 2019 2018 2019 2018 2019 2018 2019 2018 movement: £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Other pension scheme (956) (889) (56) (185) 269 128 (743) (946) expenditure (Note 10)

Understated payment of benefits from - - 472 - - - 472 - prior years (see restatement paragraph above)

Remeasurement of defined benefit 1,222 43 (1,813) 1,016 (1,759) 1,713 (2,350) 2,772 pensions

266 (846) (1,397) 831 (1,490) 1,841 (2,621) 1,826

Pension (liability) (6,137) (5,291) (14,598) (15,429) (6,866) (8,707) (27,601) (29,427) brought forward

Pension (liability) (5,871) (6,137) (15,995) (14,598) (8,356) (6,866) (30,222) (27,601) carried forward

80 • Prospect annual report 2019 – Finance Notes to the financial statements – year ended 31 December 2019 (continued)

17 STAFF PENSION SCHEMES (CONTINUED)

Changes to the present value of the defined benefit obligation during the year PPS CPS BECTU Totals Year ended Year ended Year ended Year ended 2019 2018 2019 2018 2019 2018 2019 2018 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Opening defined 96,449 99,951 27,126 28,235 27,723 29,661 151,298 157,847 benefit obligation

Current service cost 2,814 2,753 318 356 347 431 3,479 3,540

Interest cost 2,708 2,463 753 704 783 738 4,244 3,905

Contributions by scheme 12 10 - - - - 12 10 participants

Actuarial (gains)/ losses on scheme liabilities and 7,885 (5,807) 2,885 (2,032) 3,272 (2,399) 14,042 (10,238) changes to demo and fin assumptions

Net benefits paid (2,908) (2,921) (498) (137) (842) (708) (4,248) (3,766) out

Closing defined 106,960 96,449 30,584 27,126 31,283 27,723 168,827 151,298 benefit obligation

Changes to the fair value of scheme assets during the year PPS CPS BECTU Totals Year ended Year ended Year ended Year ended 2019 2018 2019 2018 2019 2018 2019 2018 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Opening fair value 90,312 94,660 12,528 12,806 20,857 20,954 123,697 128,420 of scheme assets

Expected return on 2,561 2,355 359 325 594 525 3,514 3,205 scheme assets

Return on plan assets excluding 9,107 (5,764) 1,544 (1,016) 1,513 (686) 12,164 (7,466) interest income

Contributions by 2,187 2,170 692 590 917 868 3,796 3,628 the employer

Contributions by scheme 12 10 - - - - 12 10 participants

Net benefits paid (2,908) (2,921) (498) (137) (842) (708) (4,248) (3,766) out

Administration (182) (198) (36) (40) (112) (96) (330) (334) costs

Closing fair value of 101,089 90,312 14,589 12,528 22,927 20,857 138,605 123,697 scheme assets

Actual return on 11,668 (3,409) 1,903 (691) 2,107 (161) 15,678 (4,261) assets

Finance – Prospect annual report 2019 • 81 Notes to the financial statements – year ended 31 December 2019 (continued)

18 COMMITMENTS UNDER OPERATING LEASES

LESSEE

At 31 December 2019, Prospect had obligations of total future minimum lease payments under non-cancellable operating leases for the following periods:

Land and buildings Other

2019 2018 2019 2018

£’000 £’000 £’000 £’000

Expiry date:

No later than one year 197 156 4 25

Later than one, no later than five years 209 261 2 9

406 417 6 34

The lease payments recognised as an expense during the year was £217,453 (2018: £184,211).

LESSOR

At 31 December 2019, Prospect had contractual future minimum lease receipts under non-cancellable operating leases for the following periods:

Land and buildings

2019 2018

£’000 £’000

Expiry date:

No later than one year 142 130

Later than one, no later than five years 288 401

429 531

The lease receipts recognised as rental income during the year was £136,808 (2018: £105,346)

19 ANALYSIS OF CHANGES IN NET DEBT

At 1 Jan Cash At 31 Dec 2019 Flows 2019

£’000 £’000 £’000

Cash 2,262 189 2,450

20 POST BALANCE SHEET EVENT

The National Executive Committee (NEC) has considered the effect of the COVID-19 outbreak that has been spreading throughout the world in early 2020 on the union’s activities. Although the outbreak is likely to cause some disruption to the union’s business, the NEC believes that these are not likely to be significant as the union will take actions in relation to expenditure in order to mitigate the risk. Furthermore, given the union has healthy cash balances and liquid investments, the NEC has a reasonable expectation that the union has adequate resources to continue in operation for the next twelve months from the date that the accounts are approved by the auditors. Membership is rising during the crisis and the union is taking steps to mitigate costs, such as cancelling the biennial national conference and temporarily closing down offices where possible. Some staff who are unable to work during this period will be furloughed and the government job retention scheme utilised where possible. The union will of course continue to pay staff their full contractual pay and benefits. Should it be necessary for cash flow purposes, the union will liquidate our investments to cover our day-to-day costs. However, the union is monitoring cash flow closely and this is not currently necessary.

82 • Prospect annual report 2019 – Finance Information to be provided to members under the Trade Union and Labour Relations (Consolidation) Act 1992 (amended)

Under the Trade Union and Labour Relations (Consolidation) Act 1992 (Amended), the Union is required to circulate all members with details of the salary and benefits provided to the General Secretary, the President and members of the National Executive Committee. The President and members of the National Executive Committee do not receive any salary from the Union or any benefits. All members of the National Executive Committee and the President are reimbursed for any out of pocket expenditure incurred by them in the performance of their duties on behalf of the Union, as is the General Secretary.

Name Position Details Amount

M Clancy General Secretary Salary £123,589

Pension contributions £18,415

Taxable benefit (car) £5,324

DECLARATION TO MEMBERS

We are also required by the Trade Union and Labour Relations (Consolidation) Act 1992 (Amended) to include the following declaration in this statement to all members. The wording is as prescribed by the Act.

“A member who is concerned that some irregularity may be occurring, or have occurred, in the conduct of the financial affairs of the union may take steps with a view to investigating further, obtaining clarification and, if necessary, securing regularisation of that conduct.

The member may raise any such concerns with such one or more of the following as it seems appropriate to raise it with: the officials of the union, the trustees of the property of the union, the auditor or auditors of the union, the Certification Officer (who is an independent officer appointed by the Secretary of State) and the police.

Where a member believes that the financial affairs of the union have been or are being conducted in breach of the law or in breach of rules of the union and contemplates bringing civil proceedings against the union or responsible officials or trustees, he should consider obtaining independent legal advice.”

Finance – Prospect annual report 2019 • 83 Schedule of subscriptions, donations and affiliation fees

AFFILIATION AND MEMBERSHIP FEES £

Aircraft Engineers International 4,697

British Screen Advisory Council 2,400

Confederation of Shipbuilding and Engineering Unions 1,788

European Federation of Public Service Unions 14,095

European Transport Federation 4,057

International Federation of Air Traffic Safety Electronics Association 1,500

International Transport Workers’ Federation 9,721

Irish Congress of Trade Unions 8,586

National Pensioners Convention 2,250

National Union of Journalists 2,500

Royal Aeronautical Society 1,302

Scottish TUC 23,333

Share Action 1,167

Trades Union Congress 408,838

UK Flight Safety Commission 1,200

UNI Global Union 100,000

Unions 21 5,671

Wales TUC 1,494

Other affiliation and membership fees under £1,000 (19) 3,564

598,162

DONATIONS AND APPEALS £

Wendy Searle – Antarctica expedition sponsorship 1,000

Show Racism the Red Card 1,250

BECTU History Project 2,000

Other donations under £1,000 (34) 8,396

12,646

84 • Prospect annual report 2019 – Finance