A focus on education, employment and skills. Towards a sustainable Heathrow

Transcription

1 A focus on education, employment and skills Towards a sustainable Heathrow

2 Employment in aviation As the UK s only hub airport, our interest is in enhancing the economic benefits that Heathrow provides, while minimising our impact on local communities and the environment. This briefing sets out our approach to managing Heathrow s impact on education, employment and skills, supplementing the data contained in Heathrow s 2009 sustainability performance summary, available at The scale of employment Aviation generates a variety of employment opportunities, including cabin crew, passenger services, security officers and ground crews. The industry also relies on professions such as maintenance engineers, IT specialists, police, fire officers, construction managers and environmental scientists. Figure 1 shows that 141,000 people were employed directly in the UK aviation industry in The industry supported a further 93,000 indirect jobs within its supply chain. This translates to around 0.5% of the UK s total workforce being directly employed within the aviation industry, rising to 0.85% when the industry s supply chain is taken into account 1. Hundreds of thousands of people are also employed in industries which rely on aviation for their success, including travel agencies, retail outlets and hotels located close to airports. 1 What is the Contribution of Aviation to the UK Economy? Report provided on behalf of the Airport Operators Association by Oxera, Annual Business Inquiry, NOMIS and Oxera 3 Civil Aviation Authority Annual Airport Statistics 2009, As a result of the spending power of people employed within the aviation industry and its supply chain, many more jobs are supported across the UK economy. Fig 1: Employment in UK aviation 2 Employees in the aviation sector ( 000s) Indirect employment Direct employment The aviation sector generates billions of pounds worth of economic output and provides large scale employment, enabling the UK to compete in the globalised economy. Theresa Villiers, Minister of State for Transport Aviation s employment efficiency Employment productivity, measured as a ratio of passengers to aviation employees, is increasing. Since 1999, the number of passengers handled by UK airports has increased by 29% 3, yet the number of staff working within the aviation industry has grown by just 13% 1. As illustrated in figure 2, the Gross Value Added (GVA) per employee (the economic value of the output of the employee minus their costs) in the aviation sector is around 62,000. This is 35% higher than that of the overall UK economy. 1 GVA has fallen slightly in recent years, most likely due to the increase in competition resulting in lower air fares. Fig 2: GVA - Aviation vs UK employment 80,000 70,000 60,000 50,000 40,000 UK average labour productivity Aviation average labour productivity 30, ,000 In 2007, 234,000 people were employed in the aviation industry and its supply chain in the UK 1 Aircraft maintenance engineer at Heathrow

3 Heathrow s local employment profile 5 The number and percentage of Heathrow staff living locally in 2009 The proportion of employed local residents working at Heathrow in 2009 Hillingdon Hillingdon 8, % Ealing 7.2% 1 in 14 Ealing 5, % 3.9% 1 in 25 Slough 4, % Slough 6.9% 1 in 14 Hounslow Hounslow 10, % 9.6% 1 in 10 Spelthorne Spelthorne 3, % Five Borough Totals 8.3% 1 in 12 Five Borough Totals 33, % 45.5% 1 in 15 Percentage of employed local residents working at Heathrow by job type in 2009 Local Authority Management / Professional - Airport Specific Management / Professional - General Passenger Services, Sales and Clerical Air Cabin Crew Pilots / Flight Operations Information Technology Maintenance/ Trades Airside operations/ Cargo / Baggage Handling / Drivers Catering/ Cleaning Customs / Immigration / Police / Fire Staff Security Total % % % % % % % % % % % Count Hounslow ,755 Hillingdon ,960 Ealing ,760 Slough ,092 Spelthorne ,916 Five borough totals ,482 5 Based on Heathrow Employment Survey 2008/09. Waterside staff have been excluded.

4 Employment at Heathrow Heathrow is the UK s largest employment site with 76,500 people, employed by 320 companies, working at the airport. Heathrow s employee productivity The nature of employment 4 Almost 50% of those working at Heathrow live in the five boroughs around the airport. This equates to around 1 in 15 of the working population within Heathrow s local communities. Around 60% of Heathrow workers are employed by airlines and their handling agents. Almost 25% are employed by passenger service, catering and retail companies. Only 7% of those working at Heathrow are employed by BAA. The diversity of Heathrow s local community is reflected in Heathrow s workforce. A summary is provided below: Gender In line with the overall employment trend in the UK, 42.5% of Heathrow employees are female. Catering and retail provide the only employment types that employ more women than men. Age The proportion of 16 to 24 year olds working at Heathrow increased between 2004 and 2009, from 7.1% to 10.1%. People within that age group remain underrepresented at Heathrow in comparison with the national average /09 Heathrow Employment Survey, Heathrow Airport Ltd, 2010 The proportion of employees aged 55 and over has decreased since 2004, from 12.1% to 9.3%. Ethnicity As illustrated in figure 3, the ethnicity of Heathrow staff broadly reflects that of the surrounding area. Fig 3: Ethnicity of Heathrow employees 2.2% 3.1% 14.4% 13% Other British of Pakistani descent Other European British of Indian descent White British Heathrow is a vital employer in the West London economy - providing some 170,000 direct and related jobs and offering routes into a wide range of employment for local communities. Frank Wingate, Chief Executive, West London Business 57.3% Employee productivity, measured as the ratio of passengers to staff, has increased six-fold at Heathrow over the last 50 years. As illustrated in figure 4, in 1958 Heathrow handled 3.5 million passengers and employed 26,200 staff, a ratio of 134 to 1. Today, Heathrow handles around 66 million passengers and employs 76,500 staff, a ratio of 862 to 1. Fig 4: Heathrow s staff to passenger ratio Passenger: staff ratio 1, ,500 In 2009, 320 companies employed around 76,500 people at Heathrow Customer service manager at Heathrow 2

5 Managing education, employment and skills at Heathrow In this report, we describe our approach to managing education employment and skills at Heathrow using a model based on influence, guide and control : We influence education, employment and skills by increasing local people s awareness of the range of airport careers and raising their aspirations to secure these jobs. We guide education, employment and skills by supporting local people to gain qualifications to secure employment with other companies operating at Heathrow and to develop their careers. We have direct management control over some aspects of education, employment and skills through the recruitment, training and employment conditions we offer to our own workforce. BAA influences, guides and controls education, employment and skills at Heathrow Influence Guide Control Heathrow s job types During 2009, around 60% of Heathrow staff were employed in three occupational categories: air cabin crew customer services roles supporting the logistics of Heathrow s operation, such as baggage and cargo Around 30% have roles involving: catering and retail security pilots and flight operations maintenance Heathrow s remaining employees work in other roles, including customs, fire and police. Education Teacher career days Primary and secondary school challenges Community investment grants Fig 5: Heathrow employment types 12% Employment Pre-employment programmes Apprentice fair Airport company apprentices BAA engineering apprenticeships BAA employment conditions 6% 8% 6% 26% 8% 18% Skills The Retail Academy BAA staff training 16% 18% Almost one in five Heathrow employees work in customer services 3 Heathrow in operation

6 Education, employment and skills that Heathrow can influence We influence educational attainment around Heathrow by working with schools to increase local students awareness of the range of airport careers and to raise their aspirations to secure these jobs. Primary school: construction Each autumn, we run a construction challenge for local primary schools. The challenge engages teams of students to design and construct their own version of Heathrow s Terminal 5 using recycled newspaper rods. The primary school construction challenge provides an insight into the roles available within the construction sector at Heathrow, introduces students to key construction principles and develops teamwork, problem solving and communication skills. Secondary school: engineering Each spring, we hold a secondary school engineering challenge. Delivered with the support of our engineering apprentices, the challenge introduces students to engineering through an activity based on the Terminal 5 tracked transit system: the automated train that links the main terminal building to the satellite terminals. Each event enables BAA s engineering apprentices to share their experience of working at Heathrow and highlights the challenging and rewarding roles involved in maintaining the airport. Careers advice We hold regular Understanding Heathrow Apprenticeships events that inform careers advisors about the range of apprenticeships available at Heathrow, and the qualifications and attributes required to access them. Speakers include BAA s engineering apprentices, as well as employers representing the construction, retail and logistics sectors. The events include a tour of Heathrow s Terminal 5, providing around 50 local teachers and careers advisers with an insight into the airport s working environment. We face considerable skill challenges in some communities. By working in partnership with BAA and other Heathrow employers, we aim to equip residents with skills to access real, local job opportunities and build sustainable careers. Hugh Dunnachie, Chief Executive London Borough of Hillingdon Engaging local schools Our education programme is delivered through Heathrow s local Education Business Partnerships and focuses on the construction and engineering sectors activities at Heathrow. In 2009, we engaged 3,918 students in our primary and secondary school education programme, compared with 1,899 students in This involved: 1,678 year 6 students from around 35 local primary schools participated in our construction challenge. 2,240 year 8 students from 10 local secondary schools participated in our engineering challenge. Fig 6: Students involved in school challenges No. of Students 4,000 3,500 3,000 2,500 2,000 1,500 1, ,918 During 2009, 3,918 students living near Heathrow participated in BAA s primary and secondary school challenges Heathrow employee supporting a construction challenge at a local school 4

7 Education, employment and skills that Heathrow can guide We guide companies operating at Heathrow towards programmes which support local people to develop the skills and qualifications required for airport employment and to develop their careers. Education We invest in communities close to Heathrow to support improvements in educational attainment and skills. In recent years, through the Heathrow Community Fund, an independent charity funded by BAA, we have supported: 15 local secondary schools to gain specialist status the development of skills centres for young people in Hayes, Slough and Feltham a new adult learning centre in Feltham a new IT centre at Colnbrook Junior School a Centre of Excellence at The Matthew Arnold School in Spelthorne Employment Apprenticeships We hold an annual Heathrow Apprenticeship Fair that enables young people to understand and access apprenticeships provided by companies operating at the airport. The 2010 Fair provided 500 local students with the opportunity to speak to 13 employers that, between them, offered 400 apprenticeship places each year. Pre-employment programmes We support Gateway Heathrow 2012, which enables unemployed people from the areas around Heathrow to access airport employment in retail and construction. The programme provides local people with an insight into what it is like to work at a major international airport and offers advice on aspects such as accessing transport for night shifts and preparing for interviews, as well as basic training in subjects such as customer service and health and safety. Those who successfully complete the course are guaranteed an interview with a retailer operating at Heathrow. In 2009, Gateway Heathrow helped 185 local people to access airport employment. Skills Heathrow s Retail Academy holds a direct Skills Funding Agency contract. This enables Heathrow to offer nationally recognised qualifications, including NVQs, a Diploma in Retail Business and apprenticeships, to those working in Heathrow s retail sector. The Retail Academy holds a Total Quality Service standard for customer service, is accredited to the National Skills Academy and has been awarded a grade 2 by OFSTED. With 83% of Heathrow s retail staff living in the five boroughs closest to the airport, our programmes contribute to the improvement of skills in the communities closest to Heathrow. Heathrow Apprenticeships While companies from many of these sectors operating at Heathrow offer apprenticeships, there is currently a strong focus on apprenticeships within the construction, retail, logistics and hospitality sectors. During 2009, 186 people completed apprentices at Heathrow which were accessed through the Heathrow s Apprentice Fair. This is a significant rise when compared to 2008 and represents an increasing trend over recent years. Fig: 7 Heathrow based apprenticeships accessed through the Heathrow Apprentice Fair No. of Apprenticeships % Around 83% of people working within the Heathrow s retail outlets live in the five boroughs closest to the airport 5 Heathrow s CEO, Colin Matthews, at the Retail Academy graduation ceremony

8 Education, employment and skills within Heathrow s direct management control We have direct management control over some aspects of education, employment and skills through the recruitment, training and employment conditions we offer to our own workforce. Our employment profile BAA employs around 5,500 people at Heathrow. Of these 70% work in security roles, 25% in operations, maintenance and customer services and 5% in head office functions. At Heathrow, the proportion of female employees working for BAA has remained consistent in recent years, at around 40%, while the proportion of employees from non-white, ethnic backgrounds increased from 33% in 2006 to 40% in The percentage of permanent employees leaving BAA at Heathrow during the year fell from 11% in 2006 to 7.7% in Employment conditions People working for BAA receive an employment package involving a mixture of elements. As well as salary, this package includes: a bonus scheme based on company profit and personal performance access to subsidised medical cover holiday pay of at least 24 days per year Other benefits include a child care contribution, cycle to work scheme, interest free travel loans, free long term parking at BAA airports and a company pension scheme. There are almost 5,000 Heathrow employees in the BAA pension scheme, with over 2,800 pensioners who have previously worked at Heathrow. As with many large companies, BAA has recently closed its final salary pension scheme to new members, offering a competitive defined personal contribution scheme to new employees. Training Over the past five years, between 5% and 10% of BAA employees have been promoted into more senior roles. During 2009, 79% of BAA s employees at Heathrow received training, an increase from 65% in 2006, with over 10,000 days invested in training. Security related roles are critical for Heathrow s success. Training for these roles is managed using a competency framework which covers both technical security skills as well as interpersonal skills. Intensive induction and refresher training covers task based training, such as the use of security screening equipment and searching processes, and customer service based training, such as conflict management and understanding passengers experiences. Engineering apprenticeships BAA has offered apprenticeships in engineering maintenance since This four year programme provides young people with a range of skills and qualifications that enables most to access high-quality employment. Apprentices are offered a starting salary of 13,500 and progress to over 22,000 in the fourth year of the programme. Once qualified, individuals can access careers with roles with salaries upwards of 30,000 p.a. Interest in our engineering apprentice scheme is high, with over 1,000 applications received each year. In recent years, we have offered around 10 places. At any one time there are around 75 people involved in our engineering maintenance apprentice scheme. Apprentices play an active role in delivering our secondary school engineering challenges and also offer advice to students participating in Heathrow s Apprentice Fair. Over 60% of those who have completed the apprenticeship in the last 33 years secured permanent employment with BAA. Others are supported in securing employment with businesses close to Heathrow. 10,000 During 2009, over 10,000 days were invested in training BAA employees at Heathrow Heathrow security officer 6

9 Towards a sustainable Heathrow We are proud of the services that Heathrow Airport provides and of the role it plays in connecting London and the UK to the world. We recognise the contribution that aviation makes to economic, social and cultural development in the UK and worldwide. We also recognise the impact aviation can have on local communities and the environment. We believe that both aviation and Heathrow Airport can expand sustainably, enhancing economic and social benefits while also respecting environmental limits. Achieving a sustainable Heathrow is key to our vision for Heathrow to be Europe s hub of choice. This means creating a future Heathrow which: Is safe and secure for staff, passengers and the airport community. Enables the achievement of positive social and economic effects. Seeks to prevent, reduce or offset significant effects on communities and the environment. Has surface access which limits congestion and other local effects. We have strategies and action plans to achieve these commitments which cover all aspects of our business: What we design the design of our infrastructure, transport links and buildings. How we build how we construct and redevelop our airport. What we buy the products and services we buy, the organisations we do business with and the contracts we manage. How we operate the people, technology and processes in place to operate our airport. How we collaborate working with partners who are based at and around Heathrow Airport. About this briefing This document is part of a series of bi-monthly briefings which outline our approach and our performance in delivering a sustainable airport at Heathrow. The series replaces the annual Corporate Responsibility Report we have previously published and is designed to provide an accessible and more frequent insight into key sustainability issues. We will include a short annual summary of key performance data in the series. The series will cover the following issues through 2010: 2009 Sustainability performance summary Climate change Noise Air quality Education, employment and skills Detailed information on the issues contained in these briefings as well as our wider sustainability programme is available at About BAA UK airports BAA owns and runs Heathrow, Stansted, Southampton, Glasgow, Edinburgh and Aberdeen airports. We sold Gatwick Airport during Rail BAA owns and operates the public rail service Heathrow Express and are joint owners of Heathrow Connect. Other interests BAA has a 65% interest in and operates Naples Airport, and manages retail operations at Baltimore Washington International Airport, Boston Logan Airport and Pittsburgh International Airport. Information relating to BAA and the airports it owns is available at Contact us us about this briefing via heathrowsustainability@baa.com Heathrow Airport Limited 2010 THD v1 0510