Enterprise Background EnterpriseMlT has achieved some really significant successes in delivering new delivery models for in work learners, NEETS, growing BZB revenue and establishing an employment placement service for students. The work of the company and staff who have been involved in this is widely acknowledged. Our Eelco Division has been impacted by having offered employment to key staff. As a result, EnterpriseMlT is unable to continue to operate this division but has contracts with third parties that we are obligated to fulfil. We have been working over recent months to identify the best way of ensuring that our contractual and moral commitments can be satisfied to the best of our ability. Our 828 and Employment Centre functions are essentially support services for key MIT functions. The engagement between these functions and Faculties has been challenging since inception. It appears to management and governance that the location of these services has created a barrier to engagement, at least in perception and has created excessive cost and complexity in maintaining two separate companies. Our PTE division, comprising both the Mahurangi Technical Institute and Keystep brands has been subject to a Review by Deloitte acting on behalf of TEC from April 2016 to determine whether administration and delivery of programmes to students has been compliant with all funding rules. As a result of concerns identified in this Review, TEC chose to extend this work to a full Investigation covering all PTE delivery in 2013, 2014 and 2015 Deloitte presented their draft report to TEC and to EnterpriseMlT in early November. Although several matters are still under discussion between EnterpriseMlT and TEC, a number of the concerns raised are sufficiently concerning that funding for 2017 for EnterpriseMlT has not been approved. It is likely that some of these concerns will be the subject of media and public scrutiny over the next month Despite this, much of the learning activity offered by EnterpriseMIT is producing good outcomes, meeting or exceeding stakeholder expectations and is relatively unique The MIT Council yesterday reached a decision yesterday that although the activities undertaken by EnterpriseMIT are of real value to the communities we serve, these activities would be better conducted directly under MIT governance and management control MIT itself has not secured funding at Level 2 at current levels and is itself currently assessing what delivery will be continued in 2017 Proposal As a result of these factors, it is proposed: - EnterpriseMIT will cease trading on 30 December 2017 Programmes and services currently conducted in the PTE, 828 and Employment Centre Divisions of EnterpriseMlT will be operated by MIT and under MIT branding in 2017 - Activity undertaken in the Eelco Division will be transferred to Mahurangi Technical Institute (Paul Decker?s company) and will continue under this entity subject to the Eel Company not successfully acquiring the interests in eel IP and equipment under a first right of refusal provision created in the original purchase of these interests by EnterpriseMlT - The programme delivery for any programmes currently offered separately by both MIT and EnterpriseMIT will need to be aligned Proposed Impact on Staffing We are proposing that: The current organisational structure will be retained and Managers will report through the Strategy Directorate of MIT. It is possible that this structure may subsequently change over time but we would consult further on any subsequent changes 0 Staff in the PTE Division on permanent employment contracts will be offered new employment on Individual Employment Agreements with MIT on the same terms and conditions as those currently offered by EnterpriseMlT Staff in the PTE division on fixed term or casual employment contracts will be offered employment on Individual Employment Agreements with MIT beginning in 2017 on the same terms and conditions as those currently offered by EnterpriseMlT to the extent that there is funding to support this delivery. This is no different than the situation that would occur if the delivery was to continue within EnterpriseMIT. We anticipate being able to indicate to individuals whether employment for 2017 will be offered by 9 December. We regret that this is much later in the year than we would prefer but the timing has been driven through circumstances beyond EnterpriseMlT or control We are currently progressing negotiations intended to facilitate offers of employment for the two non-managerial employees of the Eelco Division on the same terms and conditions as present. In the event that no such offer can be secured, we propose that these staff will be made redundant in accordance with the procedures in individual employment contracts. Staff in the 828 team and in the Employment Centre on permanent contracts will be offered new employment contracts in MIT on the same terms and conditions as those currently provided by EnterpriseMlT As both MIT and EnterpriseMlT currently offer separate programmes leading to the Skipper Restricted Limit Licence, there is a need to rationalise this into a single programme, albeit one where the block courses are offered at different sites. We are proposing that a new integrated online module will be developed and that a single mechanism will be developed to support students during their seatime phase. To facilitate this, we are proposing that the role of the SRL Administrator will be relocated to the Otara office to ensure ready access to MlT?s Canvas development team and management and to ensure that all EnterpriseMlT distance learning delivery is run directly direct Head Office senior management. As all activities will be run under MIT, the EnterpriseMlT and Mahurangi Technical Institute brands, branding and names will be discontinued from 30 December. All current branding will be removed from course material, web sites, documents and vehicles All operations, procedures will run under MIT Policies, Procedures and Guidelines. Staff will be required to comply with and apply these at all times. Staff will be expected to represent MIT positively with students and external parties and to constructively engage with other MIT functions and departments. What does this mean? We are proposing that: 0 Staff in the PTE Division on permanent employment contracts will be offered new employment on Individual Employment Agreements with MIT on the same terms and conditions as those currently offered by EnterpriseMIT Staff in the PTE division on fixed term or casual employment contracts will be offered employment on Individual Employment Agreements with MIT beginning in 2017 on the same terms and conditions as those currently offered by EnterpriseMlT to the extent that there is funding to support this delivery. This is no different than the situation that would occur if the delivery was to continue within EnterpriseMlT. We anticipate being able to indicate to individuals whether employment for 2017 will be offered by 9 December. We regret that this is much later in the year than we would prefer but the timing has been driven through circumstances beyond EnterpriseMlT or control Consultation I am genuinely interested in your feedback and will consider all feedback received from you before 4 pm on 2 December before making a final decision. You are welcome to seek support and guidance in considering this proposal and in preparing your submission Feedback should be emailed to me at tim.wilson@manukau.ac.nz I will not be able to consider anonymous submissions I am happy to answer any questions to assist you understanding this proposal and its implications further. These should also be emailed to me personally. I anticipate communicating my final decision on 5 December. At that time, I will provide my decision, a personal letter advising you of the impact of this decision on your role and employment offer letters and contracts to all permanent staff that will be offered employment in MIT Suppon 0 You have the opportunity to seek independent support and advice throughout any part of this process - If you require further information, please send specific requests to me at: 0 If you have any questions about your terms and conditions of employment email Announcement 25 November 2016 Consultation closes 1600 on 2 December 2016 My decision is announced and transfer offer documentation provided to employees 5 December 2016 Offer documentation accepted and returned to People Culture Block Otara South Campus by 1600 on 9 December 2016 Offers made to casual and fixed term staff for employment by MIT from 2017 made to the extent that funding allows Date of transfer and cessation of trading by EnterpriseMlT 30 December 2016 EAP Support Employee Assistant Programme Employee assistance is available through our Employee Assistance Programme 0 Staff can contact our external provider, Stratos on 0800 787 2867 to make an appointment with a counsellor