On 15 April 2025, Jason Strelitz, Corporate Director of Adults & Health, made a key decision regarding proposed changes to annual leave and sick pay terms and conditions for employees of Juniper Ventures, the council's wholly-owned school education cleaning and catering Local Authority Trading Company (LATCo). Following consultation with Councillor Neil Wilson, Cabinet Member for Health & Adult Social, and Councillor Sarah Ruiz, Statutory Deputy Mayor and Cabinet Member for Environment, Sustainable Transport, Children Services and Education, the Corporate Director agreed to the changes, which are detailed in the exempt appendix 8 of the report.

Juniper Ventures - Proposals on Annual Leave and Sickness Terms and Conditions

The key decision concerned proposals from Juniper Ventures to amend the annual leave and sick pay schemes for its employees. Juniper Ventures is a wholly-owned company of Newham Council, comprising Juniper Ventures Limited, Juniper Pursuits Limited, and NASPM Ltd (National Alliance of School Premises Management). It was established seven years ago from the externalisation of Newham Catering and Cleaning Services (NCCS). The company specialises in education catering (school meals) and education and public building cleaning services, primarily within the borough, 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 are Juniper's primary customers. Schools pay for Juniper's services from their budgets, which 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 and the cost-of-living crisis. To remain competitive in the market and retain business, 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.

Having a Local Authority (LA) controlled education catering and cleaning service in Newham is described in the report as:

a key tool in delivering on key priorities including children’s health, a Just Transition on climate and Community Wealth Building.

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 company also pays industry leading terms and conditions built around London Living Wage¹ and the Local Government Pension Scheme (LGPS). The report notes that 83% of the Juniper workforce are local residents, that the company recognises Unions, and that it is an industry leader on low per plate carbon food and sustainability.

Alternative Options Considered

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.

Implications

The report outlines several implications of the proposals:

• Financial Implications: The council has a £4.050m equity investment and a £0.700m working capital loan within Juniper. The proposed changes to terms and conditions are considered essential to ensure Juniper can remain financially viable and minimise any financial risk to the council.
• Legal Implications: The recommendations arise as a result of ensuring ongoing viability at the council company. The council can rely on its general power of competence under section 1 of the Localism Act 2011² and the Companies Act 2006 to make the changes to the company arrangements.
• HR Implications: The recommendations do not directly impact council employed staff. HR have been consulted and support the course of action sought to protect the council company and its staffing.
• Equalities Implications: The Public Sector Equality Duty (PSED) under section 149 of the Equality Act 2010³ requires the council to have due regard to the need to eliminate discrimination, advance equality of opportunity, and foster good relations between those who share protected characteristics and those who do not. The council is committed to this in the provision, procurement and commissioning of its services, and the employment of its workforce.