In response to the derisory pay offer detailed in the NTUS response to the Financial Report dated 6th July, we have now submitted the formal NTUS core pay claim.

At a meeting with management yesterday we presented a joint claim for a 1 year pay deal greater than the RPI August 2010 figure based on the following criteria: -

The pay claim is submitted in the context of what has been the second year of record profits for NATS and the second year of record dividends paid by NATS.

The pay freeze which has had to be endured by our members contrasts even more dramatically with the ‘eye-watering’ bonuses and remuneration received by the two out-going Chief Executives. This pay claim also relates to a period where over the year the workforce has reduced by more than 336 staff.

Against the backdrop of the above there is a need for NATS to recognise the fundamental contribution which our members have made. This includes:-

• Delays are at an historic low with NATS now recognised as one of the top three performers within Europe as opposed to being amongst the bottom three;
• The successful delivery on time and to budget of the two-centre strategy with a minimal impact upon customers;
• The maintenance of an excellent safety record;
• A significant reduction in the cost base of the organisation;
• The extension of a number of crucial contracts including Manchester and Luton;
• The winning of new business;
• The introduction of EFPS;
• The continued movement towards an acceptable settlement as part of CP3.

Management’s response was less than enthusiastic and no improved offer was made.

We expect that the negotiations will be difficult and protracted.

We meet again on 1st September.

The July 2010 pay brief can be downloaded HERE.

** NOW OPEN TO NERL REPS **

The BEC are holding a 2 day training event at the Prospect Offices in Chertsey on 22nd and 23rd Sept 2010. Priority will be given to Airport Reps initially, with 20 spaces available. It is recommended that all local Airport Reps try to attend. If there are problems with release, inform your section chair. Please take advantage of this important opportunity to develop both your knowledge and skills as a Rep.

ALL APPLICATIONS SHOULD BE VIA YOUR SECTION CHAIR – Please respond ASAP

After 14th July, and spaces not taken by Airports will be opened up for other Reps wishing to attend.

Event Date: Wed 22nd Sept to Thurs 23rd Sept 2010

The planned content is outlined below but may be subject to change:

Day One:

1100 – 1300   The Role of The Union/BEC (BEC, interactions with NATS and other Unions, what is in it for the members)

1330 – 1530   WP (Basics of the Model/SRATCOH, AAVA/SOAL/Overtime)

1545 – 1730   Other Agreements & Questions from REPS

Day Two:

0830 – 1200   Negotiating Skills (basic training)

1230 – 1445   Personal Cases (unit level)

1500 – 1630   Other Agreements & Questions from REPS

Accommodation and meals will be booked by Prospect.

Reasonable travel expenses will be reimbursed.

Prospect, the union representing over 3,000 air traffic controllers, engineers and specialists today (Tuesday) hit out at the Chancellor’s budget announcement which revealed plans to sell off the Government’s share in the national air traffic provider NATS.

Garry Graham, Prospect’s National Secretary for Aviation, said: “We have been consistent in warning that this is a route which the UK Government should not go down. Air traffic control is a vital part of this country’s infrastructure.

“A safe, efficient and effective air traffic control system is of crucial interest, not only to the UK economy, but also to every member of the travelling public. This proposed sale has nothing to do with supporting a safe and effective air traffic control system and is entirely Treasury driven.”

He said the union had written to the Secretary of State for Transport, Philip Hammond, seeking an urgent meeting on this issue, but had yet to receive a reply despite a pre- election commitment from David Cameron that Prospect would be consulted prior to any announcement.

“The Government’s proposals are short-sighted and represent a knee-jerk reaction by the Treasury. NATS receives no public subsidy, is a net contributor to the Exchequer and provides an invaluable public service.

“No other country has gone down this route – ironically, Germany has recently rejected proposals to go down the route of privatisation. Stability, sustainability and safety should be the key Government concerns – air traffic control is too important to be left to the vagaries of the market. The UK has some of the most congested and complex airspace in the world and it is a tribute to the professionalism and hard work of our members that it is also some of the safest.”

Prospect is seeking urgent meetings with Ministers to set out its members’ concerns and resist any proposed Government sale.

NATS was part-privatised in 2001. At present the Government retains a 49% share, the Airline Group – a consortium of airlines – has a 42% holding, BAA has a 4% shareholding while the remaining 5% of shares are held by staff.

The news release can be downloaded HERE.

The Prospect ATCO  branch team consisting of, Paul Winstanley, Angus McCormick, Vanessa Fahey, Sara Scuffle, Andy Hughes, Ron McNab, Dave George and Aaron Curtis attended National Conference in Liverpool. A successful conference in which the profile of the branch was again raised. The key issue for both the ATCOs’ Branch and our engineering colleagues in ATSS was the threat of the Government sale of their share holding. The following motion was debated and adopted by Conference;

This conference is concerned as to the speculation that the Government plans to further sell down their share within NATS. Conference believes that a safe and effective air traffic control system is a crucial part of the UK infrastructure and of critical interest to the traveling public and UK economy. This conference agrees that  UK air traffic control is too important a public service to be left to the vagaries and instabilities of the market. Whilst recognising the lobbying already undertaken by Prospect on this issue, Conference instructs the NEC to campaign and lobby stakeholders to seek to ensure that the Government maintains its current shareholding within NATS and that it should extend its share holding where appropriate in order to ensure the long-term interests and stability of UK Air traffic Management Provision.

Branch Chairs speech,

Chair, Conference, Paul Winstanley moving motion 71 in the name of Prospect Air Traffic Controllers Branch.

Speculation about the sale of NATS and in particular the governments 49% stake underline the concerns this Union and Branch raised at the time of Privatisation in 2001, in particular with reference to both safety and investments. As has been made clear by the previous speaker the Airline group will most probably sell, some but not all are on their knees and simply need the money. However, the original figure of £50 million they paid for 46% of NATS is now estimated to be valued in excess of £370 million. This sale alone flies in the face of the NOT FOR PROFIT commitment we were given at the time of PPP. But its the speculation about the government holding that gives us greater concern.

Evaluation of the nature of ATC provision suggests that Privatisation can not address the efficiency concerns advanced by it’s advocates. ATC can not be competitively bid, without the delicate balance of Safety and Service delivery being affected. Implicit in the theoretical formulation of privatisation is an assumption that efficiency will improve because customers can take their business elsewhere – ATC does not pass the yellow pages test.

So what if the government sell – what if the new private agency becomes the sole provider with less or no public accountability – Economic incentives can quickly become a double edged sword cutting against the interests of the public and driving the need for profit, but  most importantly – The profit making market based incentives for efficiency and economy that are supposed to motivate a private provider do not easily align with the governments abiding responsibility of SAFETY AND SECURITY.

It would be at best risky in terms of public safety to have private operators singly or multiples of, each responding to their own internal profit making imperatives, acting on their own operational protocols moving ATC through national airspace.

Review of recent examples in which profit and cost cutting measures employed by private public transport services emphasise the point. In both cases the private companies were directly or indirectly blamed for the Potters bar derailment with the loss of 7 lives and in excess of 60 injured and closer to home as I’m stood here in front of you as an ATCO was the tragic event of 2002 – The mid air collision on the Swiss/German boarder (Uberlingen)with the tragic loss of 71 lives, 52 being Russian school children – in this case the lack of investment in maintaining engineering to support critical safety tools required by the ATCO were directly attributed to the cause. And as recently as this April we witnessed commercial pressure overriding safety at all levels. That Volcano – I’m not going to try and pronounce it but you all know the one I mean. Within days of the event airlines were demanding changes to policy – policy in place for safety.

Despite being heralded by John (Lord) Prescott at the time of PPP as the ‘perfect model’ of a private operator who’s safety record could never be called into question British Airways and Willie Walsh launched in excess of 20 aircraft despite knowing that UK airspace was closed – for safety reasons  - He put his staff and the flying public at risk. Shocking enough, but the pressure exerted on our members that day was simply disgraceful – limited fuel and airspace closure are not a healthy safety environment for anyone.

When challenged about the myth of the  Ash cloud  he said ‘ there will be plenty of time for a post-mortem’ –  He was extremely fortunate that he wasn’t using post-mortem in its traditional sense.

These examples substantiate the significance of safety in business models driven by the need for profit and dividends.

If ever there was a business that should not be run for profit it is NATS – safety is our business.  The Government share is vital in providing a safe efficient ATC service – it must be at the very least maintain if not increased.

I’ve never trusted Politicians – it was Andrew Smith at a Labour party conference that said ‘our skies are not for sale’  - it was the same party that privatised us.

We now have a new government – a strange mix of ideologies and colour but one with a need to raise money – we must fight against  any quick ‘fire sale’ in order to raise money for the treasury. We must hold the government to the promises made to us at the time of PPP –  we must ensure that their share holding remains – sale is not an option.

Indeed Paul Noon our General Secretary recently commented: ‘The commitments given by the government at the time were legally binding, and we will take any steps necessary to prevent them being contravened, including legal and or industrial action – there must be no for sale sign over NATS” he concluded.

Conference – its time to reaffirm that stance and send a clear message – Our skies are not for sale , the skies above this country belong to you and me – its our airspace – lets keep it that way. Please support both motions 70 & 71.

The ATCOs’ Branch is delighted to announce that Bob Neville has been awarded an MBE in the Queen’s birthday honours list for ’services to National Air Traffic Services Trade Union’.  Bob has been an active member of this branch for some years and this award is recognition for his knowledge, expertise and dedication. Recently retired, the membership owes Bob a huge debt of gratitude for the work that he did for all members and this award is a well deserved accolade for someone who has contributed so much.

Paul Winstanley
Branch Chair

Paul Winstanley, Garry Graham and the Vanessa Fahey, along with other members of the NTUS, met with Harry Bush at CAA house on Tuesday 25th. The key proposals are as follows;

1. Pass through of pension costs including all members of the DB scheme
2. Acceptance of NATS full capital expenditure proposals including an additional £20m contingency
3. Allowance for operating costs based on actual performance in 2009/10. According to the CAA, this is some 3% below NATS March 2010 business plan projections. The CAA has allowed NERL to retain in CP3 some of the benefit from CP2 cost savings
4. An increase in real pre-tax cost of capital allowance to 7.5% (6.75% in CP2)
5. A gearing target of 60% and cap of 65% in order to maintain financial resilience
6. A broader range of service quality targets including average delay per flight of 12.5 seconds, with a bonus for performance better than 10 seconds and a penalty for performance worse than 15 second
7. A continuation of a traffic volume risk sharing mechanism consistent with SES II
8. No change to the 3% cap on non-regulated business
9. Inclusion in the licence of London Luton and London City airport approach services

The full CP3 proposals can be downloaded HERE.

The document will be subject to revision in July/August as there remains two areas of uncertainty namely the SESII performance scheme and details surrounding FLIGHT EFFICIENCY. NATS will be heavily involved in developing a matrix incentivising environmental efficiency

COMMENTS ON POTENTIAL CHANGE IN OWNERSHIP – The Regulator stated that they can’t regulate for any change in ownership, the airline group is released from the tie and they are able to sell if they so wish.

Prospects view is that Government and a number of airlines are desperate for cash so we must be real in our expectations of what we believe will occur.

However, the Regulator will make it clear with any potential buyer that they will have to work in the environment set by The Regulator with the appropriate financial resilience, capping and gearing mechanisms.

TIMESCALES - Consultation ends on the 27th August with two dates established for the final hearing 7th and 10th September. The Full and final report will be published early December 2010.

Prospect will continue to speak with all concerned with CP3 to protect the interests of all ATCO members.

Paul Winstanley
Chair Prospect ATCO Branch

NEW GOVERNMENT MUST MAINTAIN ITS COMMITMENT TO UK AIR TRAFFIC CONTROL

Prospect, the union representing over 3,000 air traffic controllers, engineers and specialists, today (Tuesday) hit out at speculation that the new Government is seeking to sell off of its share in the national air traffic provider NATS.

Garry Graham, National Secretary for Aviation, stated: “Air traffic control is a vital part of this country’s infrastructure. A safe, efficient and effective air traffic control system is of crucial interest not only to the UK economy but also to every member of the travelling public. The suggested Government sell-off has nothing to do with supporting a safe and effective air traffic control system for the UK, but is entirely Treasury-driven.

“The reality is that our members working for NATS have served the airline industry and the travelling public well. We have one of the best safety records in the world despite our airspace being some of the most congested and complex.”

Graham has written to Philip Hammond, Secretary of State for Transport, seeking an urgent meeting. “Air traffic control is too important to be left to the vagaries and instabilities of the market. Such a short-sighted approach will not provide the stability and certainty that a service of such strategic and national importance demands.

“At a time when the industry is still reeling from the effects of volcanic ash and the banking crisis, stability, not more uncertainty, should be the order of the day,” he said.

The news release can be downloaded HERE.

Most staff were able to return within seven attendances and as such NATS and NTUS have agreed that all attendances missed should be treated as ‘unproductive time’, and no TOIL, leave or pay will be deducted.

It was agreed that this will not set a precedent for any future unforeseen absences, which will be jointly discussed as soon as possible.

Paul Winstanley, Prospect ATCO chair, said:

“Whilst we were not happy that management put out guidance unilaterally, we agree that the approach NATS has taken compares positively with other employers.

The pragmatic approach now agreed reflects the efforts made by many staff who did all they could to return home as soon as possible, and is a good example of working together.”

Philip James, HR Director, said:

“We are delighted at the flexible and pro-active response of our staff, and agreeing this approach is a thank you for all the effort put in by many.

We recognise that disruption may be caused by volcanic ash again and will seek to have guidance in place for any further incidents as soon as possible.”