John Montague exchanged life at a billion-pound turnover contractor for a career in charitably funded āsocial enterpriseā.
What exactly is Newlife?
In a sense weāre just a traditional building contractor, concentrating on refurbishment with some new build.
The difference is weāre wholly owned by an industrial and provident society that has charitable status. We gift aid our profit to them, and they distribute it. But some of that money then comes back to us to spend on training. We use construction as a means of training and investing in people.
So why did you switch from a major contractor to a social enterprise start-up?
I was tired of not paying subcontractors on time. People had been forgotten and it was all about numbers. We talked a lot about training, but we didnāt employ anyone to do the training. Then I happened to meet the chair of the Leicester Housing Association, which had already set up a social enterprise gas-servicing company, Thorpete. We thought we could do something similar in construction.
How does Newlife do that?
We have a direct workforce of more than 100, of which 25 are trainees, and 20 are ex-trainees who qualified with us. Some of the lads and lasses who come to us arenāt even on the first rung of the ladder. Some are on probation, or have been excluded from school ā Iād say that 30% have a ādifficultā background. One lad had done some painting and decorating at college, but was working as a taxi driver. With us he got an NVQ level 3 and an HND, and heās just picked up a Ā£31,000 job as a finishings foreman.
What are the differences between working for a mainstream major contractor, and running Newlife?
I became the boss and I could make a difference, but, in a sense, a cushion was taken away. There was no company car department, no accounts department. Suddenly the bank account was my responsibility and thereās no Ā£1bn firm behind you. At Mowlem, the day-to-day paying of bills wasnāt part of my life, but here I think: āWhere are we going to get the wages this week?ā
How does the salary compare?
My salary is fine. We donāt operate a bonus system, but we get company cars and health insurance. Just because weāre a social enterprise doesnāt mean we donāt pay people well. In fact, because weāre a social enterprise, if anything we have to be more professional. We price jobs at the market rate ā the difference is what happens to the profit margin.
But there must be differences compared with operating in the commercial sector.
But we are commercial ā I donāt make that distinction. Social enterprise isnāt woolly jumpers ā itās important to me to get that across. Itās about how we decide to invest in our people. We have shareholders, but they demand social justice, not cash.
How do you see your future? Would you ever return to a mainstream contractor?
I feel totally shattered and Iāve never worked so hard in all my life. But I couldnāt see myself doing anything else any more. The real kick is not making Ā£1m turnover, but seeing someone two years on from when they joined and seeing them change their lives and thinking: āI helped do that.ā I wouldnāt go back. Thereās a bit of ego in that, but itās also enjoyable to see people develop and to be part of that. But maybe in 10 yearsā time Iāll fall off my New Labour soap box!
Age 43
Job Founder of Newlife. This is a Leicester-based, Ā£6m turnover āsocial enterpriseā contractor set up by Leicester Housing Association that reinvests its profits in training local people
Employment history After graduating in 1982, he spent seven years working for French Kier in London and the Midlands. He worked for Mowlem until 1999, latterly as construction manager for the Wolverhampton office
Lives Ironbridge, Shropshire. Married with two children, eight and six
Qualifications BSc in building engineering, Liverpool University
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