14 September 2001
Ministers have ordered an examination of their pledge that workers providing soft facilities management services, such as cleaning and catering, would remain employees of the health service in PFI deals. The staff would go on secondment to and be managed by the private sector consortium.
The promise was included in the Labour manifesto and was due to be put into action at three pilot sites – Stoke Mandeville, Romford and Roehampton – but negotiations with private sector bidders have stalled.
Mike Davis, chief executive of Catalyst Healthcare, a consortium bidding for all three schemes, said he believed the operational difficulties in the arrangements were surmountable but that the legal problems may be more difficult to overcome.
'All the bidders have worked closely on this, together with the NHS trusts to look at the practical management arrangements. We made good progress on the practical issue of managing people employed by somebody else.'
However, problems arose over the definition of which staff were managers. These workers would be transferred under Transfer of Undertakings Regulations to the private partner. There was also confusion over whether private sector managers or the NHS employer would be responsible for discipline and handling grievances.
'There are more questions about the legal issues. Do trusts have the power to contract for the secondment of employees collectively? What can you do if an individual does not want to be seconded? It is most unlikely you could force them,' Davis added.
It is understood the trusts will move the bids on to a 'best and final offer' basis once the department has revised the terms of employment for NHS staff involved.
PFsep2001
