21 January 2005
Unions are to challenge the government over a decision to exempt the higher and further education sectors from the 'two-tier' code to protect workers after reclassifying them as 'private sector'.
In a letter sent to unions last month, the then Cabinet Office Minister Ruth Kelly said the two sectors would not be included in guidance, due to be rolled out across the rest of the public sector this year, as 'both are in the private sector'.
The Cabinet Office has been consulting the Social Partners – unions, associations and businesses – on a code to ensure workers in outsourced contracts have the same terms and conditions as those transferred from the public sector, after a three-year fight from unions.
Natfhe, the university and college lecturers union with 67,000 members, said the Cabinet Office had 'misunderstood' the status of higher and further education institutions. 'Colleges remain largely centrally funded. The secretary of state has the sole power to dissolve higher education institutions and staff are covered by the local government modification order that allows lecturers continuity of service,' said Andy Pike, national officer for higher education.
'When you look at all those factors we are scratching our heads as to why the Cabinet Office thinks we are in the private sector.'
Pike said Brendan Barber, general secretary of the Trades Union Congress, would be raising the issue with new Cabinet Office minister David Miliband on behalf of the union.
But Natfhe would seek to challenge the ruling if it goes ahead. 'Being classified as private sector would have implications for the future funding of further and higher education and I doubt the Cabinet Office is intending that.'
Unison, with around 40,000 members in higher and further education, expressed its surprise at the letter.
A source said officials had already protested and that there was no justification for the decision, which could lead to staff doing the same jobs but on differing pay and conditions.
'The commitment from government was very clear. It said the two-tier code would apply to all sectors and we will continue discussions on this,' said the source.
A spokesman for the Cabinet Office refused to be drawn on the issue. He said: 'We have received the views from the Social Partners and an announcement will be made in due course.'
PFjan2005
