Napo 2019

As regular readers will be aware, my Napo membership lapsed earlier this year and therefore I did not attend the AGM in Cardiff. However, I notice that the Four Shires Napo Facebook page handily recorded several of the sessions, including that of Chair Katie Lomas, but not that of General Secretary Ian Lawrence. I think many members will be shocked to see how empty the hall looks, no doubt a reflection on the quorum now being a mere 150. Membership is of course the key issue for Napo and in this regard the following statements would seem to go to the nub of the matter:-

"Buoyed by the thought of belonging to the union pressing for a better deal for probation staff, 117 new joiners signed up between 15 October and 31 October, pushing Napo membership through the 5k ceiling it had been pressed up against for a significant period of time. Napo membership has been on a gradual increase – over 260 applications were processed between the September and November NECs. But this spike in membership during the ballot represented a 4% increase in NPS members." Napo News Dec 2018

"Napo has seen membership grow steadily since the last AGM. 18 out of 22 branches saw membership grow between May 2018 and June 2019. At time of writing, we have seen growth in NPS membership in 11 of the last 12 months; and 4 months continuous growth in the CRCs" Annual Report 2018-19 

"For the 2018 financial year, the amount received from membership subscription was £1,109,229; again, this has fallen dramatically over the preceding years. There is an urgent need for recruiting new members to strengthen the Union’s financial position." Finance Report 2019 

"The overall deficit for 2018 financial year was £400,926. This deficit once again has been offset from the general reserve funds." Finance Report 2019

"Number of members at end of year 5110" Annual Return Certification Officer 2018

"Number of members at end of year 4996" Annual Return Certification Officer 2017

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From the comfort of my sofa, rather than attendance at AGM, here are my selected highlights from both the Annual Report and Finance Report:-

Selected highlights from the Annual Report:-

9. STRATEGY FOR GROWTH. 

The NEC continued to receive regular updates on the progress against the various strands of the Strategy for Growth. The Strategy runs until the end of 2019 and so they have also already been asked to consider how the outputs from the Strategy can be built upon and further initiatives developed to consolidate and strengthen Napo’s growth. 

At least in part as a consequence of the co-ordinated strategic approach we have been taking, Napo has seen membership grow steadily since the last AGM. 18 out of 22 branches saw membership grow between May 2018 and June 2019. At time of writing, we have seen growth in NPS membership in 11 of the last 12 months; and 4 months continuous growth in the CRCs - with significant opportunities for accelerated growth being targeted over the summer (e.g. #PayUnity in the CRCs). PBNI membership has also grown during 2018-19, whilst challenges remain in the Family Court Section which will be the focus during Branch training, and on-going negotiations with the employer. The removal of Check Off for staff leaving CRCs for the NPS between December 2019 and mid-2021 presents both a threat and potential opportunity for member growth and engagement with plans already developed to take on this challenge. 

Big projects set out in the Strategy for Growth that have been implemented and/or progressed this year include:

a) Re-Tendering of Napo’s legal support and Improving support for Members and Representatives 

In 2018-19 we undertook a review of our legal services and support package for Members and Representatives. We were concerned that in many cases members were waiting longer than we would want or they would expect to get access to advice and support from Napo. The NEC agreed to include in our re-tendering exercise proposals to provide a single point of entry member helpdesk, provided by our solicitors. This would allow members with an employment related question or challenge to immediately speak to a trained and experienced solicitor or employment relations specialist. The advice offered would then be recorded and where necessary the helpdesk would pass the case forward, with a brief to local Branch representatives or Napo Officers and Officials as appropriate. These Reps would then continue to be supported on the case by the experts on the help desk – potentially significantly improving the speed and quality of the support members and Reps receive and the efficiency of Napo’s response to members’ issues. 

The tender process was won by Morrish Solicitors, who consequently took over the provision of all of our legal support and services from Thompson’s in May 2019. Napo should place on record our thanks to Thompson’s for their help and support to Napo over many years, and for the professional way in which they supported a handover to Morrish during 2019. 

Work has been taking place to ensure the Helpdesk can launch alongside the ICT systems this autumn.

b) Activist and Representative Training (ART) Programme 

This comprehensive programme is being rolled out across all of Napo’s Branches during 2019 and early 2020. This is a significant undertaking but one which to date is being very well received by Activists. The programme re-accrediting all of Napo’s local leaders and developing Branch Plans that will inform and help shape Napo’s national planning. The programme also embeds and strengthens the relationship between the local Branch and allocated national Officers and Officials who are tasked with coaching and supporting the local leaders in the delivery and development of Branch Plans, mirroring Napo’s Performance Development Conversation (PDC) model. By the end of the programme we should, on current projection, have up to 200 trained and accredited Activists and over 150 accredited local Representatives to directly support local members with disciplinary hearings, grievances, etc. 

All of the modules reflect best practice in active learning and organisational reflection and development. Module 1 is focussed on how Napo is changing and challenges Branches to review how they do things and what they focus upon – aiming to promote greater team work and space for more than just responding to individual Member Representation. It also covers Napo’s values in different Napo contexts; GDPR as both a union issue and how Napo manages its responsibilities to members; legal rights for all Representatives under the ACAS Code; and how to run a collective local campaign promoting team working and shared responsibility. 

Module 2 concentrates upon best practice in Representing individual members – again including guidance about the scope and limitations of law and practical tips on effectively guiding cases to the most positive and sustainable outcome for members. 

Module 3 brings the Branch back together to review learning from Modules 1 and 2 and concludes with the agreement of the Branch Plan. 

At the time of writing we were almost ½ way through delivering Module 1 and have delivered about ¼ of the sessions in Module 3. Dates are fixed for the remaining sessions between September 2019 and March 2020. Dates for Module 3 are also now being set with Branches – these will run into the early summer of 2020. Sessions for new Activists and Representatives stepping up after sessions have been run in their branch will be run regionally going forward, starting in early 2020. 

In addition, additional resource has been secured from the NEC to consolidate the programme, by providing 2 1 day training sessions for all Branches in each calendar year – allowing focus on specific topics of interest and concern to Activists and Reps combined with time to review the on-going Branch Plans.

c) Facility Time and Honouring the ACAS Code 

Progress has been slower than hoped in developing national agreements that facilitate enough time for accredited Representatives to do the work they need to do. This is being prioritised and further updates will be given at the AGM. 

ii. Communications Strand 

a) ICT Development 

Following agreement in 2018 to commission a new Membership and Case Management Records System, with integration to Napo’s website, a project has continued managed by Keith Waldron and Anne Burbidge. This has also broadened to include integrating the new Legal Helpdesk for members and Reps (see below). At time of writing the project remains on schedule for launching at the 2019 AGM 

b) Member Surveys 

The NEC did not progress requests for external market research to test members and potential members views on Napo’s offer; value for money; and what they would want to see from Napo, reported in last year’s annual report. This will be an area where Napo’s inhouse potential should improve once our improved ICT systems are in place. This is the largest aspect of the Strategy for Growth that hasn’t been progressed as anticipated when the Strategy was adopted and will need to be an area for consideration by the NEC in 2020 and beyond.

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Selected highlights from the Treasurer's report:-

Finance Vice-Chair’s REPORT TO AGM 2019 

The Annual Accounts – 2018 

A satisfactory balance between using the reserves and monies from the sale of Chivalry Road in a mixture of investments and revenue spending has been achieved to ensure Napo was able to meet its commitments for the year. Essential to this has been the work on exploring ways of growing the union for the future, along with continued efforts to maintain control over expenditure, especially in sourcing new affordable office space. These are ongoing aspects of the equation and are being actively pursued during the 2019 phase of the financial period. We are mindful of the obligation for Napo to remain solvent and its ability to discharge its duty of care to the staff and the optimum point at which to settle the HMRC bill in respect of the capital gains tax on the sale of Chivalry Road.

Since moving to the office at Falcon Road, Napo’s financial situation has been supported by the transfer of monies from the reserve funds to cover the costs of renting its current accommodation as set out below. In addition, investment in the Strategy For Growth initiative and the purchase of a new IT system designed to improve communication with members and strengthen the union’s organisational structure has been made.

2018 Accounts

The overall income for the year was £1,184,983 and expenditure was £1,585,909, this include £109,074 spend on representing members and £3,500 paid to branches from the organising fund. The overall deficit for 2018 financial year was £400,926. This deficit once again has been offset from the general reserve funds.

Income 

Subscriptions 

For the 2018 financial year, the amount received from membership subscription was £1,109,229; again, this has fallen dramatically over the preceding years. There is an urgent need for recruiting new members to strengthen the Union’s financial position. 

The cynical ending of Checkoff has undoubtedly had a lasting impact on our income. Napo has embarked on a campaign in preparation for the transfer of staff across Cymru to encourage the switch to Direct Debit for the payment of subscriptions. This will continue as the process of staff transfers continues with the ending of CRC contracts in England. 

There are two rates for subscription covering the existing system for payment through salary and those paying under Direct Debit. The latter as well as offering a reduced rate are shorter in range. 

For as long as I was treasurer and more lately as Vice Chair finance the AGM has not been asked to consider the level of member subscription. Members will be pleased to learn that this meeting is not being invited to increase these rates across the board. However, it is proposed to increase the current top rate of those paying by Direct Debit by £1 each month and a further tier introduced to the rates paid through this method.

In essence, this would mean those, earning £35,001 - £40,000 would move from £23 a month to £24. An additional tier for those earning over £40,001 will provide the union with an option of increasing their contribution to £25. Effectively an additional £2 to the current rate for those earning a higher salary. 

This may seem like a modest increase but any further rise in the rate may lead to the risk of diminishing returns for those who see it as the opportunity to cancel on the basis of affordability. In both cases would still fall below the maximum for those paying their subscriptions through their salary. This at present sits at £27.20 a month for the current maximum.

The two comparable rates for those members paying through deductions from salary are;- 

32001 – 33000 £26.40 monthly, annually £316.80 

33001 and above £27.20 monthly and annually £326.40 

Because of the constraints of data protection, control and the way records are kept it is not possible to provide an accurate assessment of how much this change could yield in membership subscription at this stage but when the new database has been fully implemented, we should be able to compute this information. 

Any increase along these lines would for the time being require the cooperation of members to declare their salary range including if they qualify for the additional tier. However, those who have benefited either through pay progression or an increase in pay would if members approve be in a position to assist in providing additional income for the union.

Expenses 

Staff Costs 

These for 2018 are near enough comparable with the previous financial year. However, it should be noted that the staff compliment has fallen accordingly; we have not replaced staff who have left or reduced their working hours. 

Accommodation 

Accommodation costs for 2018 remain similar to the previous year. However, member’s attention is drawn to the rental and associated cost for Napo’s office space in PCS building; at £95,107 for the year this is a considerable drain on the union’s reserves. 

Operating Costs 

Office costs such as stationery and postage are showing small increases in 2018 comparing to 2017. The more significant increase of £62,308 relates to the purchase of the new database and the installation of a new server.

Financial Costs

The increase in legal fees was largely the result of a case that was brought against the Union and required special investigation and arbitration. 

At the end of 2018 financial year, we had to re-evaluate the money invested from the sale of Chivalry Road due to the volatile nature of the financial markets. Initially we had a gain of approximately £40,000 but lost £37,478 through the changing pace in the money market. However, by the mid-point of this year, the investment had recovered to show a gain of £82,992.

Keith Stokeld 

National Vice-Chair for Finance 

12/09/2019