TAYSIDE CONTRACTS JOINT COMMITTEE 20 AUGUST Report by the Managing Director

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1 TAYSIDE CONTRACTS JOINT COMMITTEE 20 AUGUST 2007 Report by the Managing Director Report No JC 18/2007 Subject: ANNUAL SICKNESS ABSENCE MANAGEMENT and HEALTH SURVEILLANCE ABSTRACT This report details Tayside Contracts sickness absence and health surveillance costs and data analysis for 2006/07 and seeks the agreement and support of the Joint Committee for proposed initiatives to manage absence more robustly and cost efficiently. 1. RECOMMENDATION That the Joint Committee note the contents of this report and continue to support the proposals to manage sickness absence effectively and cost efficiently as detailed below. 2. INTRODUCTION The report provides an analysis of Tayside Contracts sickness absence and health surveillance costs and other relevant data. 3. INFORMATION a. SICKNESS ABSENCE STATISTICS Comparison with Scottish Councils Audit Scotland recently amended the staff group categories it requires the 32 Councils to report their sickness absence figures on. There are still three separate categories but these are now known as Chief Officers and Local Government Employees (staff groups formerly referred to as Chief Officers, APT&C staff and Manual Workers), Craft Workers (formally Craft and Manual Workers) and Teachers (unchanged). This decision was made to bring the data in line with the Single Status agenda and the 2005/06 figures were published in this format. In November 2006 Tayside Contracts Corporate Management Team took the decision to continue reporting using the old categories for internal trend comparison purposes but also to begin using the new categories to enable external benchmarking with the 32 Councils to continue. A move to reporting using only the new categories would have meant that all the historical, internal benchmarking would have been lost. Absence Rates Organisation Appendix 1 provides a detailed breakdown of the percentage of available working days lost due to sickness absence in 2005/06 and 2006/07. Taking the organisation as a whole, this percentage has reduced in 2006/07 by 0.8 % to 6.3%. 1

2 It should be noted that Tayside Contracts has a proportionately far greater number of manual workers (who traditionally have a significantly higher absence rate than white collar staff) than any of the Councils. Therefore, the national league table for this category is not included as it is not a valid comparator. Absence Rates - Chief Officials/APT&C Appendix 1 also details the percentage number of days lost for Chief Officials and APT&C staff. Compared to the same period last year, this percentage has increased by 0.2% to 4.1%. As Appendix 2 illustrates, this increase places Tayside Contracts at 3 rd place in the national league table and 1.4% below the national average of 5.5%. Absence Rates - Craft/Manual Employees In relation to the craft and manual workers absence rates, this has reduced to 6.5% in 2006/07, a reduction of 0.9% on the same period last year. Appendix 3 details Tayside Contracts position in the national league table, 20 th place and 0.6% above the national average for this category of employee. Sickness Absence Statistics Based on Revised Audit Scotland Categories Absence Rates Chief Officers and Local Government Employees Appendix 4 details the percentage number of days lost for Chief Officers and Local Government Employees and the league table position based on the most recent Audit Scotland figures. This percentage is currently 6.3%, placing Tayside Contracts at 30 th place and 0.9% above the Scottish Average. Absence Rates Craft Workers Appendix 5 details the percentage number of days lost for Craft Workers and the league table position based on the most recent Audit Scotland figures. This percentage is currently 6.7%, placing Tayside Contracts at 19 th place and 0.8% above the Scottish Average. Ill Health Retirals and Dismissals on Grounds of Capability During the period 1 April 2006 to 31 March 2007, 10 employees were retired on the grounds of ill health, an increase of 1 compared to 2005/06. In terms of the numbers of dismissals that have been made on the grounds of capability, 29 employees were dismissed from the employment of Tayside Contracts in 2006/07. Of this 29, 22 were dismissed due to long-term absence and 7 due to persistent shortterm absences. There has been no significant increase or reduction in the number of dismissals and/or the spilt between long and short term dismissals. There were 2 appeals against capability dismissal received during 2006/07, one of these appeal was withdrawn before it was heard by the Joint Committee and the other one was not upheld. 2

3 b. SICKNESS ABSENCE AND HEALTH SURVEILLANCE COSTS Direct Costs of Sickness Absence The total direct cost of sickness absence to Tayside Contracts in 2006/07 was 922,613; the monthly breakdown of the cost to each of the 5 divisions is detailed in Appendix 6. Compared to the same period in 2005/06, this cost has risen by 12,117 and this is further detailed below: Division Increase/Decrease Cleaning Division - 9,362 Catering Division - 23,399 Construction + 44,565 Transport Services - 14 Overheads Total + 12,117 Indirect Costs of Sickness Absence Appendix 7 details Tayside Contracts indirect costs which consist of the occupational health referrals but does not include health surveillance referrals. During 2006/07 the indirect costs of sickness absence totalled 15,513 a reduction of 1,841 on the same period last year. This is further detailed in the table below: Division Increase/Decrease Cleaning Catering - 2,009 Construction Transport Services Overheads Total - 1,841 Health Surveillance Costs In the financial year to 31 March 2007, the cost of health surveillance amounted to 19,170, a reduction of 4,007 when compared to the same period last year (further detailed below and in Appendix 8). This reduction was due primarily to problems experienced by our occupational health services providers, XM Services which underwent a major restructuring exercise. This resulted in XM being unable to carry out as many health surveillance referrals as in previous years. The position at XM Services has now stabilised and they are now able to carry out the same extent of health surveillance as previously. Therefore, in keeping with Tayside Contracts commitment to pro-active health surveillance costs are likely to increase next year. 3

4 Division Increase/Decrease Construction East - 1,331 Construction West - 1,304 Quarry Street Lighting + 68 Transport - 1,100 Total - 4, FINANCIAL IMPLICATIONS There are no direct financial implications associated with the terms of this report. 5. DIVERSITY AND EQUALITY IMPLICATIONS There are no specific diversity or equality implications relating to the content of this report. 7. CONSULTATION The Clerk and the Proper Officer to the Joint Committee have been consulted on the preparation of this report. 8. CONCLUSION Since embarking on a Sickness Absence Improvement Plan in May 2004, Tayside Contracts absence rate for Chief Officials and APT&C staff has reduced significantly from 5.3% to 4.1%, a total reduction of 1.2%. In relation to the figures for Craft and Manual Workers the absence rate has decreased from 7.4% to 6.5% over the past year. This is an exceptional achievement and is testimony to the success to date of our sickness absence management strategy. The Business Plan KPI target for Craft and Manual Workers was 7%, therefore, an absence rate of 6.5% has surpassed expectations. Likewise, with regard to the Chief Officer and APT&C category the KPI target was 4.5% which has been comfortably achieved by a reduction to 4.1%. Whilst the direct costs of sickness absence have increased by 12,117 over the year, real costs of sickness absence to Tayside Contracts (e.g. absence cover, disruption to service provision, management time spent arranging cover at short notice, etc) whilst difficult to measure will have clearly reduced considerably through the substantial decrease in the number of available days lost, particularly in respect of persistent short term absence. This has been achieved through the success of the sickness absence management strategy and the ongoing commitment of the Joint Committee and corporate and senior managers to maintaining sickness absence management as a key priority. IAIN C WADDELL MANAGING DIRECTOR 4

5 BACKGROUND PAPERS No background papers were relied on in preparing this report. 5

6 ORGANISATION Appendix 1 AS AT AS AT 31/03/ /03/2007 TOTAL DAYS LOST AVERAGE NO. EMPLOYEES POSSIBLE WORKING DAYS PERCENTAGE DAYS LOST AVE. DAYS LOST (EMPLOYEE) CHIEF OFFICIALS AND SJC STAFF TOTAL DAYS LOST AVERAGE NO. EMPLOYEES POSSIBLE WORKING DAYS PERCENTAGE DAYS LOST AVE. DAYS LOST (EMPLOYEE) CRAFT AND SJC MANUAL WORKERS TOTAL DAYS LOST AVERAGE NO. EMPLOYEES POSSIBLE WORKING DAYS PERCENTAGE DAYS LOST AVE. DAYS LOST (EMPLOYEE)

7 Sickness Absence SPI Table 2004/2005 (Tayside Contracts 2006/07 figure) Chief Officers, Administrative, Proffessional & Clerical Ranking Local Authority Days Lost - Sickness Absence (%) 2004/05 APPENDIX 2 1 Eilean Siar Perth & Kinross Tayside Contracts Aberdeenshire South Lanarkshire Angus Highland Moray South Ayrshire Argyll & Bute Dumfries & Galloway Scottish Borders East Lothian Glasgow City West Lothian Clackmannanshire Stirling North Ayrshire East Dunbartonshire East Renfrewshire Edinburgh City Midlothian Aberdeen City Dundee City Renfrewshire East Ayrshire Fife Inverclyde Falkirk West Dunbartonshire North Lanarkshire Shetland Islands Not reported Scotland 5.5 UNRELIABLE DATA Orkney Islands 7

8 APPENDIX 3 Sickness Absence SPI Table 2004/2005 (Tayside Contracts 2006/07 figure) Craft and Manual Employees Ranking Local Authority Days Lost - Sickness Absence (%) 2004/05 1 Aberdeenshire Dumfries & Galloway Moray South Ayrshire Glasgow City Eilean Siar Perth & Kinross East Ayrshire West Lothian Angus Clackmannanshire Scottish Borders East Lothian Stirling North Lanarkshire Renfrewshire Aberdeen City Highland East Dunbartonshire Tayside Contracts Argyll & Bute East Renfrewshire West Dunbartonshire South Lanarkshire North Ayrshire Dundee City Fife Edinburgh City Falkirk Inverclyde Midlothian Shetland Islands Not reported Scotland 5.9 UNRELIABLE DATA Orkney Islands 8

9 APPENDIX 4 Sickness Absence SPI Table 2005/2006 (Tayside Contracts 2006/07 figure) Chief Officers and Local Government Employees Ranking Local Authority Days Lost - Sickness Absence (%) 1 Eilean Siar Angus Moray South Lanarkshire Aberdeenshire Highland Perth & Kinross Argyll & Bute East Lothian Scottish Borders East Dunbartonshire Dumfries & Galloway Dundee City Glasgow City North Ayrshire Aberdeen City East Renfrewshire Midlothian South Ayrshire East Ayrshire Stirling Edinburgh City Fife Shetland Islands Clackmannanshire West Lothian Renfrewshire Inverclyde West Dunbartonshire Tayside Contracts Falkirk North Lanarkshire 6.8 Scotland 5.4 UNRELIABLE DATA Orkney Islands 5.4 9

10 APPENDIX 5 Sickness Absence SPI Table 2005/2006 (Tayside Contracts 2006/07 figure) Craft Employees Ranking Local Authority Days Lost - Sickness Absence (%) 1 Angus Stirling Aberdeenshire Moray Clackmannanshire Eilean Siar East Ayrshire Glasgow City East Lothian South Lanarkshire Scottish Borders West Dunbartonshire East Dunbartonshire West Lothian South Ayrshire North Ayrshire Renfrewshire Aberdeen City Tayside Contracts Argyll & Bute Dundee City Edinburgh City Shetland Islands Dumfries & Galloway Fife Falkirk Highland Perth & Kinross North Lanarkshire Inverclyde East Renfrewshire Midlothian 10.8 Scotland 5.9 UNRELIABLE DATA Orkney Islands

11 DIRECT SICKNESS COSTS FROM 1 APRIL 2006 TO 31 MARCH 2007 APPENDIX 6 CLEANING CATERING CONSTRUCTION TRANSPORT SERVICES OVERHEADS MONTHLY TOTAL 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 APRIL MAY JUNE QUARTER JULY AUGUST SEPTEMBER QUARTER OCTOBER NOVEMBER DECEMBER QUARTER JANUARY FEBRUARY MARCH QUARTER YEAR TO DATE INDIRECT SICKNESS ABSENCE COSTS FROM 1 APRIL 2006 TO 31 MARCH 2007 APPENDIX 7 11

12 CLEANING CATERING CONSTRUCTION TRANSPORT OVERHEADS TOTALS 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 2005/6 2006/7 APRIL MAY JUNE QUARTER JULY AUGUST SEPTEMBER QUARTER OCTOBER NOVEMBER DECEMBER QUARTER JANUARY FEBRUARY MARCH QUARTER YEAR TO DATE HEALTH SURVEILLANCE COSTS FROM 1 APRIL 2006 TO 31 MARCH 2007 APPENDIX 8 12

13 CONSTRUCTION EAST CONSTRUCTION WEST QUARRY STREETLIGHTING TRANSPORT TOTALS 2005/ / / / / / / / / / / /2007 APRIL MAY JUNE QUARTER JULY AUGUST SEPTEMBER QUARTER OCTOBER NOVEMBER DECEMBER QUARTER JANUARY FEBRUARY MARCH QUARTER YEAR TO DATE

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