Corporate covenant
Speech by Mark Francois, Minister of State for the Armed Forces.
Introduction
I鈥檓 delighted to be here for the first annual conference of this type between defence and employers鈥�
鈥ust one of the many signs that there has been a welcome step-change in our relationship.
For those of you who don鈥檛 know, I鈥檓 the Minister for the Armed Forces 鈥� and I鈥檓 delighted to be Stu Peach鈥檚 鈥渨arm up act鈥�.
It can be an unexpectedly hazardous occupation鈥�
鈥ut not in the way you might think
(Chicksands)
My background
But, of course, in all sorts of other ways my role is the most rewarding one imaginable.
And today we鈥檙e discussing the covenant 鈥 subject very close to my heart.
鈥ot just because I served as the departmental Whip at the time we were enshrining the principles of the covenant into law.
鈥ot just because鈥hen I became a minister鈥 had quite a bit to do with drafting the original Corporate Covenant
鈥ut because鈥s someone whose father served on a minesweeper on D-Day 鈥omeone who served as an infantry officer in the Territorial Army at the height of the Cold War 鈥nd someone who sees the incredible work of our service men and women day in day out
鈥 know how important it is that we help those who lay their lives on the line to help us
We listened to you
As suppliers of talent to our armed forces鈥s well as providers of opportunity鈥mployers have a greater stake in the covenant than most
But we knew our relationship with you left room for improvement.
So we made sure we listened to what you had to say.
In our reserves green paper consultation we spoke to many employers across the country.
鈥he message that came back was that you wanted a more open and predictable relationship.
鈥ne where you didn鈥檛 find another person at the end of the line every time you rang us up.
So we promised you a single point of contact.
And we kept our word.
Last spring we set up the Defence Relationship Management team.
鈥roviding clearer lines of communication between you and defence.
Why we came up with the covenant
Also, as part of this process鈥e in the Ministry of Defence鈥ealised that many companies large and small instinctively wanted to do their bit for service personnel鈥heir families鈥nd, indeed, for veterans.
鈥ut were unsure how to best go about it.
There were a number of initiatives but no easily accessible template.
We needed something that was simple.
鈥omething non-bureaucratic鈥�(which is鈥 know鈥sking a lot of government!)
鈥omething specifically designed so companies from the largest in the land.
鈥o the smallest and most humble .
鈥ould demonstrate their support for all those who wear the Queen鈥檚 uniform.
So we created that template.
And called it the Corporate Covenant.
鈥ith a menu of options for companies to:
鈥eclare themselves armed forces friendly 鈥rovide job advice and interviews for veterans and service spouses 鈥upport our reserves 鈥ffer exclusive discounts for members of the armed forces community 鈥r even back their local cadet unit
In true MOD style officials produced a detailed explanatory note on how it would work鈥ome 10 pages long. That swiftly became a victim of the ministerial red pen. It鈥檚 now just 4 pages!
But, actually, when you boil the Corporate Covenant down to its essence鈥� you can explain it in just a couple of lines.
It鈥檚 about stopping personnel from suffering disadvantage.
And it鈥檚 about extending opportunity to the best and brightest in our society.
鈥hose who have received a unique training. 鈥hose possessed of unparalleled leadership skills. 鈥hose who are immensely employable in their own right.
And with 83% of ex-service personnel finding a job after the first 6 months鈥any sooner than that鈥t鈥檚 not hard to see why they are such an asset to any company.
I think of it like this. Imagine a Corporal鈥erving on Op Herrick in Afghanistan鈥omeone who regularly leads a fighting patrol in a high IED threat environment.
Eventually鈥� after completing his service with the colours with honour鈥� he moves on. Now an ex-corporal he finds himself at the morning office team meeting 鈥hen a colleague rushes in 鈥nd says the 4 o鈥檆lock conference call has moved forward 鈥an you cope with that?
And the answer is yes鈥e probably can actually.
Vodafone announcement
On one wall in my office is a copy of the first Corporate Covenant ever signed鈥ith the names of the 5 major employer organisations who signed it, the British Chambers of Commerce, the Federation of Small Businesses, the Institute of Directors, the Confederation of British Industry and the Business Services Association.
They signed it way back in June 2013鈥oining the first company to come on board鈥ational Express.
I remember when we signed that document鈥itting at the Duke of Wellington鈥檚 old desk in Horse Guards鈥hat someone said we might have started something big.
And it looks like they were right. It鈥檚 astonishing to think we鈥檙e now closing in on the magic 500 mark. With鈥s of today 492鈥mployers on the list.
I鈥檓 delighted to announce that the ink is still drying on our latest signature.
One hour ago鈥� one of the largest companies in Britain鈥 company with a market capitalisation of nearly 拢60 billion added their name to the roll call of honour.
鈥odafone now joins other FTSE 100 stalwarts such as BAe Systems, Babcock, Barclays, and Tesco鈥�.as well as major utilities such as Anglia Water鈥nd famous names such as Liverpool FC.
Yet what鈥檚 remarkable鈥s the composition of our audience today attests鈥s the spread of covenant companies across the spectrum
We have the country鈥檚 largest employers joining hands with small and medium sized companies employing less than a hundred鈥ess than 50鈥ess than even 10 people all doing their bit.
Vodafone鈥s part of its commitment today鈥re launching a career portal to engage service leavers.
They are pledging to develop their relationship with the one group of people who can always get a signal, The Royal Signals, 94 Signal Squadron.
And they have committed to a 20% discount to defence personnel and up to 5 family members.
Technical announcements
But I want to take the opportunity today鈥o make 3 other announcements 鈥f a more technical nature.
Announcements that have come about because we鈥檙e continuing to work closely with our partners and employers.
Announcements which will ultimately increase opportunity to those currently out of work.
So today I am pleased to tell you that we鈥檝e joined forces with Jobcentre Plus and the Work Programme鈥o extend a scheme known as the Armed Forces Employability Pathways鈥� across the UK.
Under this scheme, job seekers who are eligible, suitable and interested in the armed forces鈥hether regular or reserve鈥ill be identified鈥nd given a week鈥檚 course as a taster of military life.
鈥ollowed by work experience with a civilian employer.
It will help arm those without work with the confidence and experience to get on, or further up, the jobs ladder and ideally to join the armed forces.
We know reserve service itself can help the unemployed find a way to break into the labour market.
So my second announcement is that from 1 April鈥ob seekers who sign up for the reserves鈥ill be able to train for up to a total of 43 days in their first year without having to sign off, enough to complete their initial training.
Thank you to IDS and DWP.
Thirdly鈥nd I hope you鈥檙e ready for this.
鈥e are amending Statutory Instrument 859, the Reserve Forces (Call-Out and Recall) (Financial Assistance) Regulations.
Before you dash out and ring your broker鈥et me explain what this means.
At present, we only pay additional costs of a replacement employee while the reservist employee is mobilised.
In future, employers will be able to claim costs of hand over and hand back periods before and after the mobilisation.
It also means that鈥n future self-employed reservists鈥ay claim for certain business expenses鈥uch as storage or insurance costs鈥� if they have to put their business on hold when mobilised.
But this is about administrative as well as financial assistance. We鈥檙e also clearing the red tape so you can get your claim sorted quickly.
Success and momentum
Our strengthened relationship with employers is now making a real difference.
One measure of our success is the increase in reservist numbers.
Last quarter the numbers doubled over the equivalent period the year before and the next quarter should be further ahead
But what鈥檚 even more impressive to my mind is the way covenant companies across the country are now delivering on their promises. Not just supporting reserve service but working to tackle commercial disadvantage against service personnel and their families.
As part of their Corporate Covenant pledge, local HR company, Crispin Rhodes in Milton Keynes, is helping other organisations develop armed forces friendly HR policies.
Meanwhile, Ramblers Worldwide Holidays in Welwyn Hatfield have found that they can really recruit high quality holiday leaders from ex-servicemen and women. According to their MD: 鈥淭hese are people used to managing groups for extended periods of time and caring for their welfare too, ideal skills to bring to the role of a walking holiday leader鈥�
Examples of small companies doing this
Vodafone鈥檚 slogan is 鈥減ower to you鈥�. So G-d bless Vodafone and all the other companies who have signed.
More power to your elbows. Now our challenge is to maintain this momentum 鈥o keep expanding the covenant as widely as possible.
We鈥檙e looking to you to become our advocates. Pushing the message down through your own organisations and out to others across the sector
鈥hat this isn鈥檛 just about doing the right thing for the country鈥t鈥檚 about doing the right thing for your business too.
Conclusion
So ladies and gentleman. You鈥檙e doing a wonderful thing in supporting our armed forces through the covenant.
It鈥檚 genuinely heart warming to see so many keen to employ reservists and ex-service personnel.
Some of you will have already received well deserved recognition through bronze, silver or gold awards鈥ome may even have been thanked in person by the Prime Minister at Downing Street.
But鈥s the Minister involved at the start of the Corporate Covenant鈥et me say on behalf of service personal and their families鈥wo small but really heartfelt words.
鈥hank You.
In the last two years we鈥檝e come an awfully long way.
But we鈥檙e on a roll now.
So let鈥檚 accelerate.