Glasgow: Combining energy saving activities and job creation policy

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Country:

a) Western Europe

b) United Kingdom

Language:
Type:	Project, Concept, 1
Area:	City/Town, District/Quarter, 100,000 - 1 mill.
Actors:	Local government, NGO, Publ.-priv. partnership
Funding:	Local government, European Union, Publ.-priv. partnership
Topics:	Employment
	Environmental education
	Housing (and new settlements)
	Urban renewal / Urban rehabilitation
Objectives:	Improve national / international cooperation
	Increase public awareness
	Reduce energy consumption
Instruments:	New financing arrangements

Abstract:

All over Europe the environmental sector is increasingly regarded as a potential field to create new employment and to bring ecological benefit to urban communities. Since the early 1980s the Glasgow-based Wise Group has played a major role as important partner in the implementation of public policy in the field of energy saving. Whereas previously draught proofing and loft insulation had been the main fields of activities of Heatwise Ltd., the energy branch of the Wise Group, a diversification of energy-based work has taken place within the last number of years. New activities are oriented towards energy advice services, energy auditing and energy education. Energy-related matters are regarded as an area where information and exchange of expertise is as important as the installing of technical measures. In addition, the innovative spectrum of energy-related activities is open to new vocational qualifications. This is also the case with new activities e.g. call centres and social care which are integrated in Heatwise Ltd.

Currently, the Wise Group is acting as a model for the new Labour government in its efforts to bring unemployment down and to improve the ecological status of urban communities. The Wise Group can be regarded as a example of good practice in urban development for the following reasons:

• integration into target areas of public renewal policy;
• wide spectrum of energy-related services;
• partnership approach to find solutions for the people and the environment;
• professional management structure with an umbrella organisation;
• international cooperation with eastern European municipality;
• high level of transferability of the organisational model.

Background and Objectives

In the early 1980s the concept of intermediate labour markets was developed in Scotland in order to create new employment slots in unexploited fields of economic activities. An intermediate labour market is characterised by a transitionary state between unemployment and employment where training and personal development are applied to improve an individual's job chances for first labour market entry. In addition, the policy of creating intermediate labour markets seeks to engage individuals in some form of value-adding work, usually in social or community-based activities. In Glasgow the environmental sector was targeted as a prime area by combining urban renewal and ecological upgrading measures with training measures and job opportunities. The newly established Heatwise Glasgow project started its main activities in the energy saving sector, namely energy conservation, building and construction, environmental urban design, security, urban forestry, recycling, environmental advice and education. Projects and activities are conducted as part of the implementation of public programmes by city councils (in the first place for Glasgow City Council) and increasingly as transfer of ideas through franchise agreement (e.g. in Inverclyde and Ayrshire in Scotland, Derby and Sunderland in England).

At the end of the 1980s the environmental activities were extended to other environmental sectors and the Wise Group was founded as an umbrella organisation to manage the financial and personnel process (cp. case study on the Wise Group's Landwise branch). The organisational set-up is intended to ensure that the Wise Group is de facto run like an 'ordinary' undertaking and that it is correctly placed in the local business community. The Wise Group’s arrangement for transitional workers is a weekly 3:1:1 ratio for work experience, training and personal development. The maximum duration of employment at the Wise Group is 52 weeks.

In 1983 Heatwise Glasgow was established as an initiative to insulate homes in target housing estates and to provide training and employment opportunities. In the early days of the Wise Group implementation of energy-saving measures was the main goal whereas later human resources have become the centre of attention. Nevertheless, the energy business is still one of the core activities. The main objectives of Heatwise Ltd. are:

• to identify the extent of, and develop solutions to, the problems of housing with minimum energy standards and low energy efficiency;
• to create employment and training opportunities in traditional crafts as well as in innovative areas of energy-related businesses;
• to integrate the local community in the process of planning and work;
• to put together funding packages to keep environmental improvement work and training activities at a high level.

Implementation

Project date and status

The Heatwise project was started in 1983 and is currently run as an on-going core activity within the Wise Group.

Strategy

Over the years the policy of Heatwise Ltd. has gradually changed from a mere provider of technical measures for the improvement of energy standards to a service company that offers a range of energy- related goods. The business policy of Heatwise Ltd. is currently based on the following approaches in the fields of energy saving, training and work experience:

the 'traditional' energy-saving approach via installation of insulation measures;

1. the 'service-oriented' advice and auditing approach via consulting and surveying;
2. the 'promotion' approach via spreading information, education and exchange of know-how;
3. the 'security' approach via installation of safety measures.

Activities

Heatwise's activities aim to make not only an environmental impact but also economic and social impacts. Most of the activities are directed towards housing estates with minimum standards in insulation levels and other problems of poor housing (e.g. low safety standards, less green areas). Heatwise's activities therefore mainly reach low-income households which benefit from the reduction in their weekly fuel bills. Besides the rise in purchasing power the variety of measures helps to create a greater attachment to a neighbourhood among residents as the standard of living improves by installing security systems. Heatwise's activities cover upgrading of physical capital in urban areas and include an element of community involvement which in consequence leads to a greater sense of responsibility towards safeguarding the improvements. Regeneration activities and environmental rehabilitation take place in the following fields:

1. Draughtproofing and loft insulation

Draughtproofing and loft insulation has been the core business of Heatwise Ltd. since 1983. In total more than 115000 dwellings were draughtproofed, 3,000 lofts were insulated and more than 20,000 home advice visits were made. In particular the concentration on target areas lead to the implementation of substantial renovation measures within the city's urban programme, e.g. in the area of Greater Easterhouse which is one of Europe's largest housing estates. The variety of measures include external cladding, insulation of ground floors, topping up loft insulation, replacing single glazed windows, installing gas thermal store central heating systems or combined storage and direct acting heating systems etc. In particular, external cladding was conducted by squads recruited for this task offering specialised skills in an area of great demand. This field of activity finally led to the creation of an external cladding team which now operates as contractor to Heatwise Ltd. with eight full-time contracts.

2. Energy advice and auditing

Energy advice and auditing is an increasing field of Heatwise Ltd. activity. Advice is free for the tenants and Heatwise Ltd. has developed an information package dealing with matters connected with heating such as water heating, condensation, lighting, control of central heating systems, D.I.Y. insulation and paying bills.

Energy efficiency is conducted as part of the Home Energy Efficiency scheme by the national Department of the Environment. In 1994 a joint Heatwise project with Glasgow Action for Warm Homes contained the first refurbished house in Scotland to achieve a National Home Energy Rating of 10, which is the maximum that can be awarded.

3. Promotion of energy saving awareness and dissemination activities

The policy of information and consultancy is part of the Wise Group's philosophy to delivery an environmental service and to make a social impact in the urban area. Energy education in schools is a relatively new activity which completes the direct advice visit services in regeneration areas. With the support of the Scottish Office Environmental Department, Heatwise Ltd. developed an information package for teacher and pupils. Pupils' learning activities are encouraged by classroom workshop and competition (e.g. modelling of energy systems). Dissemination of local expertise is achieved by cooperation with energy projects in Dublin and the Slovakian city of Stary Smokovec. The project dealt with improvements in energy performances in residential dwellings and was co-financed by European money from Phare and Ecos Ouverture programmes.

4. Introduction of security systems

In the 1990s Heatwise Ltd. started to offer not only energy work but also social activities which help the residents to feel safer in their homes. In particular the needs of vulnerable groups in the neighbourhoods were considered, by supplying and fitting deaf alerts and installing specially-coated handrails for elderly and physically disabled people. The introduction of silent alarms systems has been described by the residents as an important improvement in Heatwise's customer service.

The integration of new activities into Heatwise services has lead to the inclusion of a greater number of training opportunities in such fields as installer, customer advisor (estimator), energy auditor, education assistant, library assistant, administrator, finance administrator, personnel administrator, trainer, call centre operator, social care assistant or job coach. In the projects the ratio between instructor or supervisor and trainee is 1:10.

Partners

In general the Wise Group aims to deal with the problem of long term unemployment by creating an intermediate labour market with the help of partnerships, combining training, work experience and personal development. These principles can be only put into practice if a wide range of clients and funders support the Wise Group' s nonprofit companies. In energy-related activities and matters of energy-saving Heatwise Ltd. is cooperating with a number of key actors in local public policy and business as well as national political bodies:

• Glasgow City Council Housing Department;
• Glasgow City Council Social Work Department;
• Glasgow Development Agency;
• Glasgow Works;
• Strathclyde European partnership;
• Scottish Council for Voluntary Organisations;
• Local economic development initiatives;
• Energy Action Grants Agency (in charge of the Home Energy Efficiency Scheme);
• Energy Action Scotland;
• Scottish Qualification Authority;
• Employment service.

International cooperation has taken place between March 1995 and May 1996 in form of an EU sponsored project. The INSULATE project was conducted by Heatwise Glasgow, the Dublin-based Energy Action project and partners from the Slovakian city of Stary Smokovec within the framework of the programmes of Phase, Ecos and Ouverture. The main priority was to improve the energy performance of residential dwellings. Activities include two exchanges of personnel, the design and upgrading of insulation and heating control in a dwelling block of 18 flats in Stary Smokovec, the construction of six new flats, the elaboration of an energy awareness programme, the monitoring of the improved residential dwelling block, the development of energy advice services in Dublin and Slovakia and a comparison of energy labelling schemes in the UK, Ireland and Slovakia.

Financing and resources used

The financial arrangements of Heatwise Ltd. are comparable to the established spending arrangements of the Wise Group model. Local public money is combined with labour market funds. The budget line reveals that wage costs are a key element of financial planning of nonprofit activities in the environmental sector. It is therefore important to set up an umbrella organisation with clear responsibilities for financial planning and networking with labour market institutions.

Break-down of costs for Heatwise Ltd.

Source: Ruth K. Adam (project development officer at Heatwise Ltd. )

Results and impacts

The 1996 figures for Heatwise demonstrate significant improvements in energy savings. 3,259 houses have been insulated, 4,737 houses have been made safer, 238 silent alarms have been fitted, 7,500 advice visits have been made. In 1996 the total number of new cases amounted to 2,893.

As a result of restructuring training timetables, trainees now have earlier opportunities to start to work which gives a boost to transitional workers' motivation and, in consequence, the figure for early leavers has dropped dramatically from 46% to 25%. Although due to greater diversification of activities the numbers of trainees in the energy-related business of the Wise Group is decreasing, there is a constantly high outcome of people who do not return to unemployment after their time at Heatwise Ltd..

Number of Heatwise Ltd. staff

Source: Ruth K. Adam (project development officer at Heatwise Ltd. )

Barriers and conflicts

Barriers in the implementation of Heatwise's activities mainly relate to the regular turnover of temporary staff. Concentration of training into programmes which last 13 or 26 weeks has proved to be a necessity in order to prepare earlier leavers more quickly and better for transfer to a permanent job.

Lessons learned and transferability

Currently the Wise Group is widely regarded as a model for the creation of a greater number of local intermediate labour markets. The following general characteristics are important lessons to be learned from Glasgow practice:

• the Wise Group has an established tradition as a ‘catalyst’ in networking partnerships in designed areas. Like other local initiatives of selected cases in Europe the local partnership or community approach is a cornerstone of growth in turnover and output;
• the Wise Group model is based on the assumption that payment at the rate for normal industrial wages values the work of the transitional workers and increases their commitment to the training programme. In consequence, quality of work has to be delivered to customers and future employers of Wise Group workers can expect a certain standard of skills;
• a wider mix of operations has proved to be an appropriate strategy in order to continue attracting public money. In 1996 as much as a quarter of the Wise Group's economic and social activities was located outside Glasgow.
  

The Wise Group's branch Heatwise Ltd. has greatly benefited from the setting up of new activities. The following features are important as lessons to be learned:

• the work of Heatwise Ltd. is providing value for money as it has a significant impact on the environmental, economic and social situation in local problem areas. Glasgow City Council can rely on a comprehensive energy employment initiative which supports the process of implementing urban regeneration programmes;
• networking and partnership building are the most important element in the Wise Group approach as no single funder could sustain the entire costs;
• diversification has to be mentioned as an important strategy as this offers not only new services for the customers but also increases the benefits for client groups. Long-term unemployed come into contact with a wider spectrum of transferable skills (e.g. communication abilities in advice, auditing and call services);
• the special client group of long-term unemployed with low skills is scheduled to have the opportunity of an extra six months training which would enable them to catch up with the working standard of quality work. Such 'activity work' with a duration of six months could help to 'heat up' their skills in order to make them fitter for the intermediate labour market and the first labour market;
• the Heatwise model - like all parts of the Wise Group - can be easily transferred to other areas and currently such franchising is taking place in East Ayrshire in Scotland. The franchise system is based on a five year involvement of the 'mother company', the Wise Group, in the local initiative and a take- over by the local partner after the end of the period. The idea is to create a local intermediate labour markets that can rely on a tested organisational and funding model.

Source of Information

EA.UE (ed.) 1997: Job creation in the environmental sector. Local employment initiatives in Europe, Berlin

Jacobs, Michael 1994: Green Jobs? The Employment Implications of Environmental Policy. A report for WWF. CAG Consultants, London

Merseyside European Liaison Unit (ed.) 1996: The Promotion of new Employment Initiatives in the Context of a Regional Development Strategy. A Challenge for Industrial and Urban Regions in France, the UK and Germany, Exchange of Experience Project October 1996, Liverpool

Schmid, Günther / Auer, Peter 1998: Transitional Labour Markets: Concept and Examples in Europe, in: EA.UE (ed.), New Institutional Arrangements in the Labour Market. Berlin

Sinclair, Alain 1992: Social Integration and Creation of Urban Activities, in: European Foundation for the Improvement of Living and Working Conditions, (ed.) 1992: The Improvement of the Built Environment and Social Integration in Cities, Dublin, pp. 221-227

Sprenger, Rolf-Ulrich 1997: Policy background paper on 'Environment and Employment' for the European Conference on 'Environment and Employment' in May 1997, Brussels

The Wise Group 1995: Annual Review 1994, Glasgow

The Wise Group 1996: Annual Review 1995, Glasgow

The Wise Group 1997: People Work. Annual Review 1996, Glasgow

Contact:

Cities:

Glasgow :

Glasgow is Scotland's largest urban centre. It has a long standing role as an industrial and commercial centre and has the infrastructure necessary to support its role as a significant European city. Glasgow has an international airport, is a hub of the national road and rail network, has a significant concentration of higher education institutions and substantial assets in the leisure, entertainment and tourism industry. The city has five institutions of higher education, 45 research institutions and 11 colleges of further education with around 105,000 students and £ 53 million of basic and near-market research, some 36 % of the Scottish total. Glasgow is also of significance in the TV and media industry some of which have their headquarters based there.

The city’s role is crucially important to the Scottish economy: Glasgow provides 18 % of the employment, 20 % of Scotland’s service sector employment and 25 % of jobs in the growing business services sector. The city maintains 14 % of its employment and gross value added in manufacturing, with key activities in food and drink, non-motor vehicle and instrument engineering.

Population:

Project was added at 27.02.1998
Project was changed at 27.02.1998