Forum Topic

New cleaning company Enterprise examined

Our new refuse collecting company is a large Lancashire-based group, Enterprise Group Holding Ltd, Reg No 05982830,with contracts with over 50 local authorities = 25% of population. Its last published accounts (Dec 2010) show a turnover of £846m, annual loss of -£30m or -£3,600 per employee.  2008-9 shows an increase in employees and a decrease in the wages bill. There is no recognised union agreement in the company. In the same year the Directors remuneration rose from £0.5m to £1.6m.Now, if I were to give a contract to such a company I would need:a)a schedule of work and workers for every street in the Borough;b)a schedule of lorries;c)a penalty clause if the company failed to properly provide a & b;d)a clear statement of working conditions of its Ealing employees;e)evidence that workers' pay is at least the Ealing living wage that applies to all Council employees.In addition, the Council officer in charge of such a massive contract must be accountable publicly for any failure to provide the service he is employed to provide. He must explain to us, his employer and the ultimate paymaster of Enterprise, how he could allow a totally under-prepared company lose on our streets. Who will pay for the extra costs of the clear-up? I wonder why Enterprise made such a large loss in 2010?

Ann Pav ● 5109d33 Comments

Jason Stacey was a bigger asset to this Borough than any other local politician this borough has had in decades.One of the few who transcended the dirt and childishness of local party politics .Losing him is tough for the tories but worse for the borough as a whole. As for this street cleaning debacle, along with the parking hikes and damage caused to local commerce and communities, I would have thought that this would be enough for any diligent and honourable person(s) responsible or involved to resign forthwith or be sacked.  It cannot be just the Councillor involved but those who supplied the advice.

Michael Brandt ● 4661d

The last two month’s street cleaning figures have been dire to say the least.  The proportion of streets cleaned right first time fell to 65% in May according to the answer to a written question (number 39) asked by me at the last council meeting. For the last year (2011/12) of the old May Gurney service the contractor very consistently managed to get 88% properly clean first time.  The Enterprise contract requires that a level of 95% is achieved.  Last year on average Enterprise was appalling, only managing to get 70% of streets right first time over the course of the year.  In April only 76% of streets were right first time.  In May this number fell to 65%.  So over 1/3rd of all the Borough’s streets were unacceptably dirty after the first clean in May.  The council inspected 28% of streets in April and 22% in May and sent the contractor back to clean them.  Of these reinspected streets 95% in April and 86% in May finally made the grade.  Astoundingly in May 14% of the streets inspected (only one in 5) were still unacceptably dirty after 2 cleans.  The original concept of the contract was that 95% of streets should be Grade A clean first time.  How far we are from that vision.  The only way the council will solve this is to increase the number of inspections it does.  Right now it is cheaper for the contractor to go back to a few streets and re-clean them than it is for them to get it right first time across the Borough.  Only when the level of inspections increases will the contractor be forced to get it right first time.  Cutting the inspections was a mistake.  Jason Stacey’s Conservatives in 2006 proved that the only way to clean up Ealing is to focus on it and hold the contractor to account.  This administration is failing to do that.

Phil Taylor ● 4661d

From the number of complaints of this nature in Acton in particular I think it must be to someone

Philippa Bond ● 4754d

I was waiting at home this morning for a delivery and was watching for the delivery van.Here's how  Enterprise performed on my part of Boston Road.Black bag moved to a pile in the street at just before 7:00 and collected no more than five minutes later.Around 7:30 the mechanical road sweeper gave it's normal high-speed (i.e. useless) pass of the gutters. Nothing much to pick up as the black bags were sealed refuse.Just after 8:00 the recycling truck arrived. Efficiently collected but with a degree of 'spillage'.Note the problem?The mechanical sweeper preceded the recycling run and 'spills' won't be picked-up until the next time it passes this way giving the perception that the street ha not been swept.Come on Enterprise, it's not rocket science. Time the sweeper to make its 'run' after the recyclers. result, a perceived swept street and happy customers.

Nigel Brooks ● 4755d

Re  At least the streets will be clean -          xxxxxxxxxxxxxxx  and that would not be the only reason. Wait till the  restriction on rate increases comes off and we have a local  Labour administration, gawd 'elp us. I well remember them increasing  the rates by 66%  one year and 27% in another , that not too long ago. So given the present pent up financial situation, they would slaughter  ratepayers given the opportunity, let's hope they are denied that!.

Tony Price ● 4756d

Maybe we should vote the Tories back in locally in 2014. At least the streets will be clean - and as quite a few folks may be living on the streets by then this could be significant.....

Eric Alan Leach ● 4756d

Vallis Way and the other street in the round had missed collection for the plastic recycling twice in the last month. the first time it was collected on the following Monday, rather than On Thursday and the second time it was collected on Friday. On top of this, most of the time, only part of the road is being cleaned and normally before rather than after refuse is collected. This means that whatever rubbish is spilled on the road by the refuse collectors stays there for another week, despite the fact that this is meant to be cleaned up by whoever spills it.

Rosa Popham ● 4756d

Kris,In theory the streets are meant to be "deep cleaned" once or twice a week.  The old contract allowed a deep clean once a month or so and a litter pick in between.  The new contract is meant to be better and they are meant to sweep every time.

Phil Taylor ● 4757d

Banking industry pays £100B a year - which is some 40% less than they should be paying.Not unique to this country either. ONly other nations want serious reforms - including Switzerland - Bankers to the worlds tax evaders. crooks and money launderers.It's this country that's blocking serious reforms.

Michael Brandt ● 4757d

Re  How is it careers are built on a trail of disasters?              xxxxxxxxxxxxxxxxxxx            birds of a feather?, and all that that  could well entail

Tony Price ● 4757d

Re  £18M is still obscene remuneration              xxxxxxxxxxxxxxxxxx      which is what I said/ highlighted. And which was on top of his salary, THE amount he is paid for doing his job. OK, if he does perform  well and way above what would be expected of him in relation to his salary ( and perks ), give something extra  as a recognition  but NOT £18 million!!.It would be interesting to learn how he receives it, either directly and paying the appropriate tax or via some company set-up, either here or off-shore

Tony Price ● 4757d

and somehow, with a monumental cock up to his credit, Cllr. Mahfouz has brokered or conned Brent and Hounslow into a parking cartel with another great corporation of con artists ..Serco.How is it careers are built on a trail of disasters?Stranger than fiction!

Michael Brandt ● 4757d

The streets in Westridge Estate (Greenford) have rarely been litter picked on the same day as rubbish/recycling day (as has been promised). There have been many times when our street has not been litter picked for a month at a time despite numerous reports advising Ealing Council of this.

Kris Smith ● 4757d

As per Eric's post, the service in North Hanwell is also now better.The former contractors used often to ignore people's bags and boxes and be heard moaning and groaning when sent back the next day.Does anyone know if any work been done to identify whether any particular areas are better / worse than any others?

Phil Kay ● 4757d

"one guy got £18 million, disgusting, absurd , indefensible and totally unwarranted as I cannot make out what the Banks do. They lend money to almost no-one and if they do, charge exhorbitant rates. As a Premier  customer with one Bank with a High Interest account they pay me 0.10% interest but if I borrow from them via an Overdraft, they charge me 11.1%. Something ain't right somewhere."he / she wasn't in the retail banking side but in the investment banking side where it would be quite possible that this individual made several hundred £million in profit for barclays through trading activities - the majority of that profit goes in corporation tax and dividends to pension funds.to put the current "banker bashing" in perspective (and the endless calls to tell the bankers to get lost), the banking sector continues to pay more than £100B a year in tax to the UK - that's almost the entire cost of the NHS paid outright. Without bankers, we'd very likely be looking at a rise of around 50% tax for personal tax payers given thatb PAYE contributions only net just over £200B. So the choice is .... keep the bankers or 50% extra tax on your wages.Having said all that, £18M is still obscene remuneration  even if it does reflect spectacular returns on investing other people's money.

Tony Gould ● 4757d

Re  fraction of one individuals Barclays Bank bonus for a year.          xxxxxxxxxxxxxxxxxx one guy got £18 million, disgusting, absurd , indefensible and totally unwarranted as I cannot make out what the Banks do. They lend money to almost no-one and if they do, charge exhorbitant rates. As a Premier  customer with one Bank with a High Interest account they pay me 0.10% interest but if I borrow from them via an Overdraft, they charge me 11.1%. Something ain't right somewhere.

Tony Price ● 4758d

Re Another nice little earner?!!          xxxxxxxxxxxxxxxxxx were/are either of them involved in any way with the chosen Company and or is it known they could have benefited from the appointment?

Tony Price ● 4758d

It puts it ito a perverse perspective. All the work and hassle, chaos and stress of this contract to save £3million a year.A fraction of one individuals Barclays Bank bonus for a year.No wonder things are going so badly wrong in our society.

Michael Brandt ● 4758d

Re  And they continue to do so.              xxxxxxxxxxxxxxxxxx so what can be done about it, withhold  part payment to Enterprise?. A most unsatisfactory  situation, I hope this is brought home good and proper at the next election, with photographic evidences, preferably of before and after?.

Tony Price ● 4758d

It's better than it was now in South Hanwell.They picked everything up on the designated day this week except for food waste which was collected a day late. This might be acceptable when temperatures are at 4 degrees C but not in a hot summer.Was the contract change in order to save £3 million each year? Are we achieving these savings or perhaps even more because of penalties/poor performance especially during the first 8 months?

Eric Alan Leach ● 4758d

On the positive side, however, they seem to be doing very well in my area now after a initial couple of weeks of hiccups. No missed collections for a long time now. Pavements swept after collection, thank goodness, as we still have residents who put their rubbish out days before scheduled pickup  which pleases the scavengers no end.  The recycling setup off Bollo Lane seems to be working smoothly.  In fact, much better than before.

Charles Campbell ● 4758d

They have been ill advised from the start. They have the wrong equipment with vehicles far too large for small urban streets and recycling trucks designed for wide boulevard type avenues.Whoever advised and specified requirements is at fault along with the management.The operations staff who are at the 'coal face' are far from happy either they are treated as a 'profit centre' by remote management who do not want to know about operational difficulties.It can't be just Cllr. Mahfouz who screwed this up on his own, who advised him? Dr Sahota perhaps? Another nice little earner?!!

Michael Brandt ● 4758d

The Enterprise contract is still in a crisis, almost a year in and the figures are getting worse.  My walk to school is just depressing and the streets in my neighbourhood have got visibly dirtier in the last few weeks.  I pulled out the missed collection numbers up until January, see graph below.  Almost 6,000 collections were missed in January and the figures have got worse three months running.  On average, over ten months missed collections were 4.5 times worse than they were under the old contract.  In ten months last year 10,000 collections were missed.  In the same ten months under the Enterprise contract 44,000 collections were missed, that is 34,000 more missed collections in ten months with the new contract.  The council and Enterprise have screwed up massively.  And they continue to do so. 

Phil Taylor ● 4758d

Thank you Ann for those facts and figures profiling the New Enterprise Group Holding Ltd. I hope the Council Administrators have taken note of your comments . Most New brooms, it is said sweep well. Not so with "Enterprise". Was it because they had to deal with a "Providential" occurence or Was it just an attitude of "slovenliness in the ogranisation itself .? If it was the latter ,there will be many more slip ups during the extreme weeks of winter. I hope they can pay their workers and work with a unionised work force. Look forward to your future articles on this forum.

Os A Whittle ● 5108d

Never thought I'd say this but a shot of pure uncorrupted socialism would do a lot of good.But don't expect it from Labour

Michael Brandt ● 5108d

Nobody in Government seems to want to mention that this concentration in wealth distribution is a primary driver of recession. Demand falls, growth is impossible if people are paid less, and that means more business failure, more unemployment, more demands on benefits, more pressure on remaining taxpayers. It's a cycle of despair. The only good thing about it is that it restrains the inflation that is the inevitable result of printing money. But they've even screwed that up, since almost none of it has reached the real economy, it's just fuelled restarting the financial casino which got us in this mess in the first place.Still, at least nobody can accuse Labour of being socialist.

Tony Sleep ● 5108d

Ealing should drop these people, and quick!

Simon Bell ● 5108d

Enterprise Director's pay shot up - the top dog's wages rose from £300,000 to £700,000. But workers' total wages pot fell despite their numbers increasing. Pretty typical of modern Britain.

Ann Pav ● 5108d

Re  why Enterprise made such a large loss in 2010?               xxxxxxxxxxxxx  exactly, seems they are on shaky ground to start off with. Despite the loss however, the Directors  remuneration either shot up or many more Directorships were made.  That  there is no trades union representation in their organisation may well have enticed the Council, but being Labour and supposedly all for the workers, I wonder. If they are making a loss per employee, adding to the latter will logically increase their losses, so we may well be in for a bumpy ride and possibly a short one. Be interesting to see if the person  in charge in the Council will get an increased bonus next year for his / her enterprise?.

Tony Price ● 5108d

After a closer look thise afternoon, it seems they divert staff from other contracts to their blue chip operations among others the City of London.Expect severe staff shortages during Jubilee and Olympics as staff get drafted in to service those undertakings. One reason why they do not recognise unions?

Michael Brandt ● 5108d

Therefore, if 3i is behind Enterprise expect it to be sold off to someone within three years, probably earlier if they cannot find someone to buy out 3i's share with profits. So whichever way you look at it Ealing's contract isn't with Enterprise in the medium-term.

Johann Dutch ● 5108d

I am aware of how 3i venture capital investment works. They expect profitability within one year of investing and the investment repaid within three years (plus massive interest) or they foreclose and sell what is left to someone else.

Johann Dutch ● 5108d

It's a holding company, probably constituted not to make a profit for the purpose of tax avoidance. If you look at the relationships of the directors and CEO they are  linked to 3i Investments PLC (itself a subsidiary of 3i Group PLC - a private equity consortium set up by the banks, see http://en.wikipedia.org/wiki/3i), Kwik Fit and Punch Taverns, among other companies. There is also a Chinese porcelain manufacturing company that appears to be part of the same empire.Just the usual rapacious masters of the universe crowd of 1%'ers, in other words. And this is a Labour administration's idea of the ideal partner for Ealing. Dear God...

Tony Sleep ● 5109d