Changes to annual leave and sick pay terms for Juniper Ventures employees have been approved.
The decision was made by Jason Strelitz, Newham’s corporate director of adults and health, on April 15.
Juniper Ventures, a company which is wholly owned by Newham Council, provides cleaning and catering services to schools.
The company was established seven years ago from the externalisation of Newham Catering and Cleaning Services (NCCS).
It specialises in school meals and education and public building cleaning services, primarily within Newham, but also undertakes corporate catering, hospitality, and health and safety advisory services.
The proposals were made in response to increasing financial pressures on schools which, according to the council, are Juniper’s primary customers.
Schools pay for Juniper’s services from their budgets, which the report said are under pressure due to rising costs, inadequate funding increases, higher demand for special educational needs and disabilities (SEND) and safeguarding services, and the lasting impacts of Covid-19.
To remain competitive in the market and retain business, the council said Juniper needs to offer competitive prices to schools.
The report states that Juniper has been in dialogue with recognised unions regarding the proposed changes to annual leave and sick pay provision.
The changes are intended to enable the company to be better placed to retain and win business in schools.
The report argues that the survival and continued success of Juniper has positive implications for a range of stakeholders including the workforce, the council, unions, local suppliers, schools and students.
It is stated that the company is not permitted to make money on school meals in Newham, with all revenue invested in delivery, and that all meals meet not just the school meals standard but are Soil Association bronze certified.
The report notes that 83 per cent of the Juniper workforce are Newham residents.
The alternative option of not permitting the company to present proposals to the workforce or take forward any agreement with staff and unions was considered and rejected.
The report argues that without the proposed changes, the company would continue to lose market share and become “unviable”.
It also suggests that if Juniper were to be replaced by private contractors, staff terms, conditions and pensions would likely be eroded to the statutory minimum, and trade union recognition would be lost.
The recommendations do not directly impact council employed staff.