2. Newco Products Experience of Externalisation Marion Summers

3. Contents of this presentation Who we are Why externalise Where are we now What happens next

4. Who we are: an overview Originally established in 1922 as a Workshop for Blind ex-servicemen –have undergone many transformations over the years, and now occupy a purpose built premises with 3 factories 84 Employees in total, of whom 45 are disabled All employees have contracts of employment with London Borough of Newham Totally integrated and inclusive workforce –employing disabled people in all areas and at all levels of the business

5. …an overview continued We manufacture Kitchens Units, Bespoke Joinery,PVC-u doors and windows –State of the art, computer controlled equipment –ISO & BSI quality standard products –IIP accredited –Turnover currently £3m Accredited NVQ assessment centre –Offer our employees nationally recognised qualifications

6. Why Externalise? Potential loss of existing business –need to expand customer base for long term survival Safeguarding existing employees –agreeing a 3 year secondment period with London Borough of Newham Review of competitiveness –selling prices, cost structures, product specifications and potential new markets –establish the difference between commercial and public practices Investigation of Social Firm model –employed consultants to advise on issues relating to the externalisation process Legal, HR and Financial issues –need to understand all of the services currently provided by the Local Authority

7. Where are we now? Legal –Issues surrounding state aid –Local Authority interest –Composition of the Directors HR –Contracts of Employment for new and existing staff –Pension considerations –TUPE transfer of staff after secondment Financial –Cash flow –Existing plant, equipment and premises –Bank accounts

8. What happens next Confirm that we really have a business Ratify the Legal issues Keep politicians, staff and customers happy!