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
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
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 + 326 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 - 370 Catering - 2,009 Construction + 221 Transport Services + 153 Overheads - 222 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
Division Increase/Decrease Construction East - 1,331 Construction West - 1,304 Quarry - 340 Street Lighting + 68 Transport - 1,100 Total - 4,007 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
BACKGROUND PAPERS No background papers were relied on in preparing this report. 5
ORGANISATION Appendix 1 AS AT AS AT 31/03/2006 31/03/2007 TOTAL DAYS LOST 36104 32916 AVERAGE NO. EMPLOYEES 2376 2451 POSSIBLE WORKING DAYS 510966 524698 PERCENTAGE DAYS LOST 7.1 6.3 AVE. DAYS LOST (EMPLOYEE) 15.2 13.4 CHIEF OFFICIALS AND SJC STAFF TOTAL DAYS LOST 1666 1735 AVERAGE NO. EMPLOYEES 185 182 POSSIBLE WORKING DAYS 42550 41860 PERCENTAGE DAYS LOST 3.9 4.1 AVE. DAYS LOST (EMPLOYEE) 9.0 9.5 CRAFT AND SJC MANUAL WORKERS TOTAL DAYS LOST 34438 31181 AVERAGE NO. EMPLOYEES 2191 2269 POSSIBLE WORKING DAYS 468416 482838 PERCENTAGE DAYS LOST 7.4 6.5 AVE. DAYS LOST (EMPLOYEE) 15.7 13.7 6
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 2.8 2 Perth & Kinross 3.8 3 Tayside Contracts 4.1 4 Aberdeenshire 4.5 4 South Lanarkshire 4.5 6 Angus 4.7 7 Highland 4.9 7 Moray 4.9 9 South Ayrshire 5.0 10 Argyll & Bute 5.1 10 Dumfries & Galloway 5.1 12 Scottish Borders 5.2 13 East Lothian 5.3 13 Glasgow City 5.3 13 West Lothian 5.3 16 Clackmannanshire 5.4 17 Stirling 5.5 18 North Ayrshire 5.6 19 East Dunbartonshire 5.7 19 East Renfrewshire 5.7 19 Edinburgh City 5.7 19 Midlothian 5.7 23 Aberdeen City 5.8 24 Dundee City 5.9 24 Renfrewshire 5.9 26 East Ayrshire 6.1 26 Fife 6.1 26 Inverclyde 6.1 29 Falkirk 6.3 30 West Dunbartonshire 6.5 31 North Lanarkshire 7.1 32 Shetland Islands Not reported Scotland 5.5 UNRELIABLE DATA Orkney Islands 7
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 3.0 2 Dumfries & Galloway 3.2 3 Moray 3.9 4 South Ayrshire 4.1 5 Glasgow City 4.2 6 Eilean Siar 4.3 6 Perth & Kinross 4.3 8 East Ayrshire 4.5 9 West Lothian 4.6 10 Angus 4.7 11 Clackmannanshire 4.8 12 Scottish Borders 5.2 13 East Lothian 5.4 14 Stirling 5.6 15 North Lanarkshire 5.7 16 Renfrewshire 5.9 17 Aberdeen City 6.2 17 Highland 6.2 19 East Dunbartonshire 6.4 20 Tayside Contracts 6.5 20 Argyll & Bute 6.5 20 East Renfrewshire 6.5 23 West Dunbartonshire 6.6 24 South Lanarkshire 6.8 25 North Ayrshire 7.1 26 Dundee City 7.5 26 Fife 7.5 28 Edinburgh City 8.0 29 Falkirk 8.9 30 Inverclyde 9.7 31 Midlothian 10.7 32 Shetland Islands Not reported Scotland 5.9 UNRELIABLE DATA Orkney Islands 8
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 3.1 2 Angus 4.5 2 Moray 4.5 2 South Lanarkshire 4.5 5 Aberdeenshire 4.6 5 Highland 4.6 7 Perth & Kinross 4.8 8 Argyll & Bute 5.0 8 East Lothian 5.0 8 Scottish Borders 5.0 11 East Dunbartonshire 5.2 12 Dumfries & Galloway 5.3 13 Dundee City 5.4 13 Glasgow City 5.4 13 North Ayrshire 5.4 16 Aberdeen City 5.5 16 East Renfrewshire 5.5 16 Midlothian 5.5 16 South Ayrshire 5.5 20 East Ayrshire 5.6 20 Stirling 5.6 22 Edinburgh City 5.7 22 Fife 5.7 22 Shetland Islands 5.7 25 Clackmannanshire 5.8 25 West Lothian 5.8 27 Renfrewshire 5.9 28 Inverclyde 6.0 28 West Dunbartonshire 6.0 30 Tayside Contracts 6.3 31 Falkirk 6.5 32 North Lanarkshire 6.8 Scotland 5.4 UNRELIABLE DATA Orkney Islands 5.4 9
APPENDIX 5 Sickness Absence SPI Table 2005/2006 (Tayside Contracts 2006/07 figure) Craft Employees Ranking Local Authority Days Lost - Sickness Absence (%) 1 Angus 2.8 2 Stirling 3.2 3 Aberdeenshire 3.5 4 Moray 3.8 5 Clackmannanshire 4.0 6 Eilean Siar 4.2 7 East Ayrshire 4.3 7 Glasgow City 4.3 9 East Lothian 4.6 9 South Lanarkshire 4.6 11 Scottish Borders 5.2 11 West Dunbartonshire 5.2 13 East Dunbartonshire 5.5 13 West Lothian 5.5 15 South Ayrshire 5.7 16 North Ayrshire 5.8 17 Renfrewshire 6.2 18 Aberdeen City 6.3 19 Tayside Contracts 6.7 19 Argyll & Bute 6.7 21 Dundee City 6.9 22 Edinburgh City 7.0 22 Shetland Islands 7.0 24 Dumfries & Galloway 7.1 25 Fife 7.3 26 Falkirk 7.9 27 Highland 8.2 27 Perth & Kinross 8.3 29 North Lanarkshire 8.4 30 Inverclyde 10.2 31 East Renfrewshire 10.8 31 Midlothian 10.8 Scotland 5.9 UNRELIABLE DATA Orkney Islands 0.0 10
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 28985 23874 15747 20151 23704 28228 106 3555 5807 1012 74349 76821 MAY 21720 20927 12808 15218 27636 23174 1193 3232 6639 3046 69996 65598 JUNE 28024 22671 19525 18775 28273 23648 1257 2388 3326 3790 80405 71272 QUARTER 1 78729 67472 48080 54145 79613 75050 2556 9175 15773 7848 224750 213691 JULY 26824 25051 17727 16354 11732 30405 1257 1628 5041 476 62581 73914 AUGUST 39774 31271 26849 21861 47392 37728 6582 2416 7610 1506 128207 94781 SEPTEMBER 24534 17903 19624 11921 25290 30239 3819 1778 4256 1960 77522 63802 QUARTER 2 91132 74224 64200 50136 84415 98371 11657 5823 16907 3943 268311 232496 OCTOBER 23414 19173 16419 12745 22485 18375 1584 2907 3566 4706 67469 57905 NOVEMBER 24942 24549 25624 13245 19637 28853 981 2436 2610 3707 73794 72790 DECEMBER 28546 28608 17757 14072 18998 28634 1165 969 1788 3460 68254 75743 QUARTER 3 76903 72330 59800 40061 61119 75862 3730 6312 7964 11873 209516 206437 JANUARY 21285 25617 14883 18426 17809 31274 749 1250 936 6413 55662 82981 FEBRUARY 29750 36315 12674 15531 23653 28281 2200 831 1426 8372 69702 89329 MARCH 27754 40233 15886 13826 32867 35201 3069 558 2978 7861 82554 97678 QUARTER 4 78789 102165 43443 47782 74329 94757 6019 2639 5339 22646 207919 269989 YEAR TO DATE 325553 316191 215522 192124 299475 344040 23962 23948 45984 46310 910496 922613 INDIRECT SICKNESS ABSENCE COSTS FROM 1 APRIL 2006 TO 31 MARCH 2007 APPENDIX 7 11
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 194 344 570 219 584 301 0 67 32 65 1098 997 MAY 735 218 254 385 499 337 65 52 65 0 1455 991 JUNE 621 405 518 550 388 449 0 138 33 0 1621 1542 QUARTER 1 1550 966 1341 1154 1472 1087 65 257 131 65 4174 3530 JULY 450 601 590 416 403 138 0 69 67 0 1509 1224 AUGUST 265 688 321 397 538 909 0 129 85 69 1209 2191 SEPTEMBER 469 475 242 69 748 782 67 0 0 0 1526 1326 QUARTER 2 1184 1764 1152 882 1689 1829 67 198 152 69 4244 4741 OCTOBER 251 164 604 357 237 664 67 33 0 0 1159 1218 NOVEMBER 551 246 558 410 343 190 67 52 133 150 1652 1048 DECEMBER 224 294 587 226 166 444 81 39 58 0 1116 1003 QUARTER 3 1025 704 1749 993 747 1298 215 124 191 150 3927 3269 JANUARY 837 548 790 249 180 328 0 0 33 0 1840 1125 FEBRUARY 464 679 633 494 577 198 130 0 0 0 1803 1371 MARCH 550 579 397 282 402 548 17 69 0 0 1366 1478 QUARTER 4 1851 1806 1820 1025 1159 1074 146 69 33 0 5009 3974 YEAR TO DATE 5610 5240 6063 4054 5066 5287 494 648 506 284 17355 15513 HEALTH SURVEILLANCE COSTS FROM 1 APRIL 2006 TO 31 MARCH 2007 APPENDIX 8 12
CONSTRUCTION EAST CONSTRUCTION WEST QUARRY STREETLIGHTING TRANSPORT TOTALS 2005/2006 2006/2007 2005/2006 2006/2007 2005/2006 2006/2007 2005/2006 2006/2007 2005/2006 2006/2007 2005/20006 2006/2007 APRIL 131 280 142 398 66 161 0 155 0 99 339 1094 MAY 1016 164 131 135 0 59 0 236 0 142 1147 735 JUNE 2296 764 727 165 52 0 797 651 390 0 4262 1580 QUARTER 1 3442 1208 1000 698 118 219 797 1042 390 241 5748 3408 JULY 1242 47 330 69 15 70 698 116 399 0 2684 302 AUGUST 1039 818 843 891 197 0 493 1247 407 210 2978 3165 SEPTEMBER 952 1427 472 890 22 81 320 260 173 228 1939 2886 QUARTER 2 3232 2292 1645 1850 235 151 1510 1623 979 437 7601 6352 OCTOBER 202 372 163 236 67 0 46 138 203 164 681 909 NOVEMBER 594 982 802 631 50 94 112 125 154 0 1711 1832 DECEMBER 534 669 770 47 67 16 224 0 97 69 1692 800 QUARTER 3 1329 2022 1734 914 185 110 382 263 454 233 4083 3541 JANUARY 247 301 900 116 183 0 64 69 67 0 1461 486 FEBRUARY 135 443 270 69 67 0 135 170 92 21 699 703 MARCH 1112 1899 1837 2435 78 47 384 173 175 126 3586 4680 QUARTER 4 1494 2644 3007 2620 328 47 583 412 334 147 5746 5869 YEAR TO DATE 9497 8166 7385 6081 866 526 3272 3340 2158 1057 23177 19170 13