Network Rail Trade Union Briefing 3rd/4th September 2009

1. Network Rail Trade Union Briefing 3rd/4th September 2009 • The aim of the brief was to allow the Trade Unions to understand the methodology used and the impact on members in the forthcoming consultations. • NWR are seeking to shed circa 1800 posts over 12 months from April 2010 in order to standardise and streamline its maintenance organisation. • On top of this it is slashing use of contractors, only seeking to use those specialist skills it requires to ‘buy in’. • It also proposes to streamline its MDU (maintenance delivery units) and Sections . • Revise down JD’s from 300 to 58 using 9 generic JD’s • Introduce cross route and Delivery unit boundary working • All of the above should give a more flexible workforce in order for NWR to deliver economically its core maintenance work. NWR are seeking a 21% reduction in costs • As part of the exercise presentations were given for each discipline, S & T; Track; E & P; Off Track.

2. Network Rail Brief 3rd/4th September 2009 - E & P • Overall the impact on E & P is envisaged to be minimal. • Currently there are 1108 staff in the function OHLE, P & D and CRE the proposed figure in the paper will be 1021 overall a loss of 87 Network Rail posts. • There are currently a number of vacancies within the function. NWR have been asked to provide a current establishment, this will assist in giving a view of the vacancy gaps at various locations • The methodology for the downsizing has been done by collating evidence from the last year on core maintenance activities and calculating the time spent by staff and factoring in relevant factors IE: prep and travel etc. Increases in electrified track mileage in Scotland (Airdrie/ Bathgate and Glasgow Airport link have not been factored in as yet) • Therefore the impact of the proposal on areas within our ‘spheres of influence’ are minimised.

3. Network Rail Brief 3rd/4th September 2009 –Redundancy & Redeployment • Within the consultation paper NWR are saying that terms for redundancy are yet to be determined. • Unions have issues with the HR process and as a consequence the final 3 pages of the 17 page consultation were withdrawn and revise to include reference to the PTR&R. • Clearly some of the staff have a contractual redundancy clause in their contracts from previous employers and some will have old BR terms. • NWR say they don’t envisage any compulsory redundancy at this stage. They will seek volunteers. • Redeployment and opportunities to transfer may exist and training for those who may redeploy.

4. NETWORK RAILPROPOSED REORGANISATION OF MAINTENANCE EMPLOYEES Effective: APRIL 2010

5. INTRODUCTION • The maintenance function Delivery Units (DU’s) below Section Manager (SM), have not been reorganised since maintenance was taken back by Network Rail during 2004. • This consultation completes the process started by phase 2a and covers bands 5–8 Supervisors and Infrastructure Maintainer posts.

6. Principles 1. • Restructure & resize the maintenance organisation to meet the needs of Control Period (CP) 4. • Standardise the organisation structure to improve management, and smooth implementation of changes to working practices. • Resize the organisation to handle current maintenance work volumes. • Reduce maintenance costs. • Create a flexible organisation to undertake alternative work, cost effectively. (Life extension, Renewals and Refurbishment).

7. Principles 2. • Facilitate appropriate redeployment and re-training of affected employees, dependant on business need. • Provide better capabilities in response to faults, using methods which are more efficient but no less effective than at present. • Promote and facilitate improved cross discipline working, with greater flexibility in workforce use with deployment between delivery units and routes. • Bring clarity to job purpose and accountabilities by introducing standardised job descriptions.

8. Scope. • All 13,000 or so employees within the DU structure are affected. Including all Supervisory, Infrastructure Maintainer (& similar grades), Clerical, Administrative, Technical and Support staff and who were not in “templated” post after phase 2a. • Also affected are Section Managers subject to area boundary changes, with their associated Section Planners, Section Planners/Administrators, who may also have had change in workload. • Track and E & P technical staff where Maintenance engineers have had boundaries changed. • LNW Route On track machine delivery team employees. • Maintenance Manager Merseyside employees. • Not included are the Telecoms Maintenance Engineer teams.

9. Organisation Design Principles 1. • Experienced line managers & engineers from the Maintenance and Engineering functions designed the organisation. Four Teams were established to cover Signalling, Track, E&P and Off Track. • Section Manager and Works Delivery Manager roles continue. All IM grades will report through these posts, and remain aligned to Track, Signalling, E&P and Off Track. • The Section Manager role will continue to deliver core inspection, maintenance and response activity. They are responsible for the performance of the area and its assets, under their control. • Works Delivery Managers will be utilised where there is sufficient work in Life extension, refurbishment and renewals. Focusing upon the delivery of a works portfolio. Reporting line changes to the Programme manager. • Supervisory support to Section Managers and Works Delivery Managers currently varies in nature country wide. Due to the supervisory variety, new roles of Section Supervisor and Works Delivery Supervisor are introduced. • The above new roles tasks will include asset inspections, development of work specifications, method statements, supervision of works delivery and supporting competency assessment of employees. • Beneath Section Managers and Works Delivery Managers, the Infrastructure employees will usually be organised in a three tier structure, across all engineering disciplines, Called; Infrastructure Team Leader, Infrastructure Technician and Infrastructure Operative. • Infrastructure Team Leader, may have an implied specialism (inspection, welding etc), this is to be avoided for other posts. The grades of Infrastructure Technician and Infrastructure Operative can be used at varied locations covering a range of different work tasks and types.

10. Organisation Design Principles 2. • All Supervisory and IM employees will be allocated to a specific team. Work is to be undertaken subject to competency, at any location, that could be both reached and returned from within a shift. Resources will be shared between Section Manager and Works Delivery Teams. Team sub division will occur as required, including faulting and response activity. • The concept of faulting across DU and route boundaries will make the organisation more effective. • Signalling & E&P already fault across DU and route boundaries, this will now apply to all engineering disciplines. S&T teams will be required to attend any fault, but investigating and repairing only that in which they are competent. • Familiarisation will be given to teams and individuals as necessary. This is to enable safe working at unfamiliar locations. • The phase 2a concept of work hosting will continue, in order to make best use of all available but sometimes limited resources. • “Isolation Assistance” is proposed for DU’s with AC/DC traction power supplies. Limited to providing *manual help to a nominated person who performs isolations. (*help to carry, construct and remove the earthing equipment).

11. Sizing Principles 1. • The SM and Works Delivery teams have been sized in different ways. • Works Delivery teams are only proposed where sufficient volume of works can be performed using existing competencies of the current workforce. All works are to be delivered economically. • The amount of IM employees required to deliver the work will be assessed against the volume of work, looking ahead a number of years and will take into account peaks and troughs in the works profile over the period. • SM teams sized according to the core maintenance and inspection activities, work arising volume, faulting and response requirements. Models have been developed calculating productive hours (actual work on task), and non productive hours, (necessary things like preparation, travel, walking, site preparation, safety or ancillary duties, train interruptions etc). • Ellipse was used as the basic tool to determine productive hours, necessary, to undertake inspection and cyclical maintenance activities. (Productive hours calculation equals “actual volume of work” X “the norm time to do the task.)” Ellipse times have been reviewed by experienced practitioners, being validated or adjusted as appropriate.

12. Sizing Principles 2. • Work arising has been determined either by submission from the DU’s on the volume of work that must be undertaken to maintain the infrastructure assets based upon company standards, or, an allowance assessed on the condition of each asset involved. • Faulting response has been sized to provide the most effective cover, accounting for failures, their effect and fault team response times. A 12 month revue of TRUST at each DU was carried out to better understand the response times necessary. • Changes to SM signalling, boundaries are proposed, to achieve a balance of workload against available resources, some SM Signalling are being removed. • Labour only Sub contractors (LOSC) have been significantly reduced, however, they will still be used when a peak workload or particular specialism is required.

13. IME Merseyside Chart 144.7 • IMM Merseyside, to become responsibility of IMDM Chester (Chart 144.7) and be renamed IME Merseyside, all posts reporting, have been restructured.

14. Track Maintenance Engineer Chart 144.3 • On Track Machines Managers, Scotland and London North West routes are withdrawn, They are replaced by a specialist Absolute Track Geometry Engineer and a Support team. The support team will consist of specialist Track Designer posts. • Mergers of a number of current SM Track posts are proposed that will create sections with sufficient assets and a large enough workforce to cope.

15. SM Track Chart 144.3.1 • Separate teams for track inspection and track maintenance are proposed within the Section Manager track group. • Proposed Introduction of a dedicated longitudinal timber examiner /maintainer post who maybe hosted. This centralises the activity, giving responsibility and accountability for timber inspections to the SM Track. • Track Inspection and Maintenance teams will normally consist of an IM Team leader, IM Technician and IM Operative posts. Team compositions can be varied to suit task requirements. Both teams to carry out inspection and/or maintenance tasks dependant upon competency. • Existing out of hours on call arrangements for fault/incident response will remain. • All existing supervisory posts are withdrawn and will be replaced by Section Supervisor and Infrastructure Team Leader.

16. SM (Off Track) Chart 144.3.2 • This team to undertake inspection and maintenance of all off track assets, (Level crossings, fences, drainage, signs), manage vegetation, litter and graffiti clearance. Some areas currently have teams covering track and off track, in future teams will be off track only or track only. • Posts for off track inspection & off track maintenance are proposed. Infrastructure Team Leader (Off track Inspection) will inspect all fences, level crossings, vegetation and drainage etc. This post will be a lone worker where practicable. • Teams will consist of three workers, Infrastructure Team Leader, Technician and Operative posts. • Existing out of hours on call arrangements for fault/incident response will remain. • All existing supervisory posts are withdrawn and will be replaced by Section Supervisor and Infrastructure Team Leader.

17. Rail Management Engineer Chart 144.3.3 • Welding & Grinding, Rail Testing and Lubrication is to become responsibility of the Rail Management Engineer. SM (Welding & Grinding) remains as now. SM (Rail Testing) takes responsibility for lubrication. Post title becomes SM (Rail Testing and Lubrication). All Rail lubrication activity to be centralised under this revised post. • A small pool of Infrastructure Technicians (Track) and Infrastructure Operatives (Track) will form part of the relevant SM (Welding & Grinding) or SM (Rail Testing and Lubrication) groups to support delivery. Additional support to be drawn from other teams subject to their holding relevant competencies. • Welding teams normally to comprise an Infrastructure Team Leader (Welding) and an Infrastructure Operative (Track), welding support to be drawn from other teams holding relevant competencies. • Rail grinding teams will normally comprise Infrastructure Team Leader (Grinding), an Infrastructure Technician (Track) and an Infrastructure Operative (Track). Team composition will vary to suite the different task requirements. Support to be provided by other teams holding the required competency.

18. Rail Management Engineer Chart 144.3.3 (continued). • Rail Testing Teams normally to comprise an Infrastructure Team Leader (Rail Testing) and an Infrastructure Technician (Track), Team composition will change to suite the different task requirements. Support to be provided by other teams holding the required competency. • Rail lubrication teams will comprise Infrastructure Team Leader (Lubrication), and an Infrastructure Operative (Track). Team composition will change to suite the different task requirements. Support to be provided by other teams holding the required competency. • Existing out of hours on call arrangements for fault/incident response will remain. • All existing supervisory posts are withdrawn and will be replaced by Section Supervisor and Infrastructure Team Leader.

19. S&T Maintenance Engineer Chart 144.4 • Current arrangements for signalling technical support are to be revised. Positions of Engineering Technicians grade 1, 2 and 3 introduced under phase 2a where never filled and are to be withdrawn. • The above posts will be replaced by the new posts of Principal Signalling Support Technician, Senior Signalling Support Technician and Signalling Support Technician. • Mergers are proposed to current SM (Signalling) posts to create sections with sufficient size in terms of assets and workforce.

20. Section Manager (Signalling) Chart 144.4.1 • Box Technicians and any variants are removed, to be replaced by a new post of Control Centre Technician. The job purpose will be to support major power signal boxes and IECC (Integrated Electronic Control Centres). The new post will react to remote condition monitoring information. • Signalling maintenance teams will normally consist of 3, an Infrastructure Team Leader (Signalling), Infrastructure Technician and Infrastructure Operative. Team composition will change to suite different task requirements. Support will be provided by other teams holding the required competency. • Joint Point Care Teams are proposed where there is a business performance need. They are not required to deliver standards compliance and as such are not considered as part of the basic sizing. • Joint Point Care Teams will consist of both Signalling and Track personnel. The Joint Team will be lead by a Infrastructure Team Leader (Signalling Joint Point Team). The team will consist of four posts, two signalling and two track. (Infrastructure Team Leader (Signalling), Infrastructure Technician (Signalling), Infrastructure Team Leader (Track), Infrastructure Technician (Track)). • The signalling response organisation is to be based upon a national matrix, that will determine each response teams area and shift coverage (early, late & night). Actual response and equipment boundaries will be specified locally, in accordance with the national response matrix. Where necessary, location & equipment familiarisation training & briefing will be provided. • Response teams will be required to attend failures/incidents other than purely signalling equipment failures/incidents with possible cover to other routes or delivery units as necessary. • All supervisory posts are withdrawn and replaced by those of Section Supervisor and Infrastructure Team Leader.

21. E & P Maintenance Engineer Chart 144.5 • The current posts of Section Manager (ETE) and Section Manager (HV Cables) are withdrawn. A new post of SM (Conductor Rail Equipment) is proposed. The new post will manage all conductor rail and high voltage cable activities in DC Traction areas. • Section Manager (Plant & Distribution) title is proposed to change to Section Manager (Distribution & Plant). Sudbrook Pumping Station group will be reorganised to follow the Section Manager (Distribution & Plant) Template. • The Electrification & Plant Technical Support Group will manage the production and revision of isolation diagrams and control the production and issue of local instructions. This activity will be hosted by one delivery unit designated by the route for a number of others and will be sized accordingly.

22. Section Manager (Overhead Line Equipment) Chart 144.5.2 • Overhead Line Aerial Maintenance teams will normally consist of an Infrastructure Team Leader (Overhead Line Maintenance), An Infrastructure Technician and 2 Infrastructure Operatives posts. As required the team size will be varied to suit the task. • The Section Supervisor (Overhead Line Equipment) will be responsible for the management of the overhead line permit to work activities. • Response cover by OHL teams will be provided on a 24/7 basis. Response teams may be required to attend other failures and incidents which may not be purely overhead line incidents/failures. They may be required to attend across other route and delivery unit boundaries. • All supervisory posts are withdrawn and replaced by those of Section Supervisor and Infrastructure Team Leader.

23. Section Manager (Distribution & Plant) Chart 144.5.2 • A new post of Infrastructure Team Leader (M&E Inspections) is proposed. This post will undertake Low voltage equipment and other statutory inspections. This will be a lone worker where safe and practicable. D & P team size will be determined by the task(s) to be undertaken. • The post of Infrastructure Operative (Distribution & Plant) is proposed for Sudbrook Pumping Station only, and will not be introduced in other Section Manager (D&P) teams. • Existing out of hours on call arrangements for fault/incident response will remain. • All existing supervisory posts are withdrawn and will be replaced by Section Supervisor and Infrastructure Team Leader.

24. Section Manager (Conductor Rail Equipment) Chart 144.5.3 • This new group will be responsible for all conductor rail, HV cable and associated equipments maintenance. The proposal centralises the activities under one responsible SM. • Conductor rail teams will normally consist of an Infrastructure Team Leader (Conductor Rail Equipment), and an Infrastructure Technician and an Infrastructure Operative. As required team composition will change to suite the different task(s) to be undertaken. • Existing out of hours on call arrangements for fault/incident response will remain. • All existing supervisory posts are withdrawn and will be replaced by Section Supervisor and Infrastructure Team Leader.

25. Works Delivery Manager (All Disciplines except Distribution and Plant) Chart 144.6 • Works Delivery Managers will report to the Infrastructure Maintenance Program Manager (Works Delivery), they have been removed from the relevant maintenance engineer organisation charts. • Technical briefing for Works Delivery Managers will continue to be provided by the relevant Maintenance Engineer. • Works Delivery Managers, Works Delivery Supervisors, Infrastructure Team Leaders (Works Delivery) Infrastructure Technician and Infrastructure Operatives will be sized depending upon the volume of life extension, refurbishment and renewal work available. • Planning and Administrative support will be provided by the Infrastructure Maintenance Programme Manager (Delivery Unit) where work volume require their support. Posts for support will cover the whole group and are not specific to one group. • All supervisory posts are withdrawn and replaced by those of Works Delivery Supervisor and Infrastructure Team Leader.

26. Safety Validation. • Safety Validation is to be undertaken using company and Industry standard procedures. The validation will cover the overall restructuring process. The change will be safety validated as a level 3 in accordance with the Organisational Safety Review Team (OSART). • A disposition review of existing and proposed Job description responsibilities and accountabilities has been performed. • Risk Management is being undertaken throughout the design and implementation stages to identify and manage key risks.

27. Human Resources • PTR&R Principles apply to relevant employees. • HR process for bands 5-8 employees has been compiled and is set down in the documents given to the Trades Unions.

28. Job Descriptions • New Job Descriptions are proposed for each post holder. The purpose is to provide clarity of accountability and responsibility. Each JD has been matched to the skills, behaviours and capabilities that company requires to be produced, and is directly related to successful job performance. • Each new JD, where necessary, has been tailored to suite the main purpose of the post, (Inspection, Maintenance and Works Delivery). Posts of a highly specialist nature are shown by the nature of the work they deliver. • The new JD’s are generic by nature concerning content, and reporting lines. They become specific by the “Description of Work” and “Job Dimensions” accorded to each post. • Each discipline group will normally be lead by an Infrastructure Team leader, who will organise and direct team activities. Infrastructure Technicians and Infrastructure Operatives will support the team leader in order to complete the tasks assigned the team. Infrastructure Technicians may be required to lead a team as directed.

29. Organisation Charts • Current and Proposed organisation charts will be provided for area consultation.

30. Employee Communication and Briefing. • Effective, open communication is critical to ensure all affected staff fully understand the proposed changes. A full programme of communication will be undertaken for all affected Network Rail Employees. • Group Briefings will be arranged and delivered by Local Managers and HR Managers. • Connect will be updated with Infrastructure maintenance Restructuring Information, giving information in a timely manner. Paper copies of the information will be placed on notice boards for those without computer access at work.

31. Competency Training and Development. • Following appointment to a position each employee’s competency requirements for the new role will be reviewed. Where training, briefing or other form of development is required a plan will be agreed with the employee to achieve the qualifications necessary.

32. Implementation Plan Timetable • National Principles Consultation- September – October 2009 • Area Consultation - November- December 2009 • Review of Area Consultation at National Level- January 2010 (Wash-up Reviews) • Consultation with local TU Health and Safety Representatives January 2010 • Employee Briefings September 2009-March 2010 • HR Process (PTR&R) January 2010 onwards • Go Live April 2010

33. Post Implementation Review • A post implementation review will be undertaken. This review will consider the effectiveness of the new organisation structure, Job descriptions, interfaces between other functions and local issues. • This review will form part of the safety validation submission.

34. Area Consultation • Area Consultation will be conducted as set out by the general collective bargaining procedures.