The People Matter Charter: mind your PQQs!

Its reckoned that the UK construction industry needs over 150000 new entrants by 2021; this into an industry with a reputation for low pay, poor working conditions, bullying, graft, discrimination . . . you get the picture. Some might say that exploitation is a price worth paying if it delivers the goods, and that’s where it’s all going wrong.

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The construction industry (that to which we ultimately belong) is resource heavy, in terms of materials, plant and people. And so long as the current drive to deliver a decent bottom line is focused solely on reducing costs, then things will not get better. The Supply Chain Sustainability School (SCSS) reckon that there is a different way.
Working with industry partners, SCSS has launched the People Matter Charter and the companies who’ve already signed up to the Charter demonstrate how seriously this is being taken. Even before the official launch, 27 companies had signed up to the Charter, including such heavy-hitters as Balfour Beatty, Murphy, National Grid, McAlpine and Skanska.
With influential voices of that quality, its important that we understand that what’s being proposed WILL affect the quality of a lighting specification.

Signatories to the People Matter Charter at the time of the Launch in January 2020

The altruistic view of the Charter – one might simply say ‘the civilised view’ – is that everyone deserves decent working conditions, with fair pay and safe working conditions. Who would vote against that? But the business case is very strong as well. Again, we can all appreciate that there needs to be a good relationship between employer and employee if a company is to thrive – because, don’t expect anyone to give a damn for an employer who doesn’t give a damn about them. That relationship is reflected in productivity . . . and one major problem in construction is poor productivity.
Only connect, my friends.

We’ve asked this question before; does any client actually want a poor building? Tax avoidance apart, what would be the benefit? So what can be done to improve the confidence between client and contractor? An indication of a strategy towards good working practices sounds like a good place to start.

The People Matter Charter has eight Commitments (three of which happen to be legal requirements, in any case):

  • Equality Diversity and Inclusion (EDI) (PMC intent)
  • Skils and Training (PMC intent)
  • Workforce Culture (PMC Intent)
  • Living Wage (PMC Intent)
  • Due Diligence (PMC Intent)
  • Labour legal requirements (in law)
  • Labour Exploitation (in law)
  • Payments (in law)

Because its not often possible to deliver everything inside one basket of Good Intentions, there is a Road Map that enables signatories to evaluate where they are currently and how far along the road the company feels able to travel within a time period.

Each Commitment has five levels, from Beginner to Leader. The Road Map describes what is involved for each Commitment at each Level. Companies wishing to become signatories to the Charter are obliged to sign-up to six of the either Commitments.

And what does this have to do with the lighting industry?

At the launch of the People Matter Charter in Birmingham on 21 January 2020 there was, understandably, a lot of talk about the effectiveness of the supply chain. It is a long-standing tenet of sustainable construction that a building can only be as good as the quality of its supply chain. If a major contractor wants to demonstrate its ability to deliver a good building, it will be obliged to turn a spotlight on the supply chain and the companies along it.

Pre-Qualification Questionnaires (PQQs) will reflect the requirements of the Charter. Supply companies will be asked about their levels of commitment to the issues stated above – and the answers to those questions WILL be investigated and the scoring of the PQQ WILL be impacted by the quality of those answers.

On one hand, this is a major pain in the bum for lighting companies already struggling in a fiercely (and unfair) marketplace. SMEs in particular may find this burdensome. But on the other hand, this is one of those opportunities to demonstrate Good Practice and to put clear water between you and the Bad Guys. And hurrah to that, say I.

So – please – get involved with this at some level. Even if you don’t go as far as embracing the Charter, put yourself in a position where you can hold open the door to anyone and invite them to take a look at how well you do things . . .  and then do some things even better!

The fringe conversation – we need to talk about Procurement

Of course, over morning coffee at the Charter launch, the talk of the audience had far more to do with the appalling influence of value engineering that is fundamentally committed to reducing costs. So its excellent news that the SCSS is embarking on a 3-year programme to look at procurement practices n the industry.

We might suggest that 3 years is a hell of a long time to wait, but the growing influence of SCSS in the construction industry suggests that we can expect change a lot quicker than that. And won’t that be a good day!

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