16 November 2001
The union fears that up to two-thirds of the council's 3,000 staff could be relocated to a call centre, possibly outside London, following the management's decision to put all of its 'customer interface' services – those that involve telephone enquiries, for example – out to tender. The outsourcing plan forms part of the council's customer service initiative (CSI), a major element of its civic renewal programme.
Westminster has published a shortlist of preferred bidders – Capita Business Services, Hyder, Vertex Data Sciences, CSL and Group 4 – and will announce its choice in February. It is widely believed that Capita is the frontrunner for the tender, which is valued at £1bn and will run for 15 years.
Many London boroughs now outsource customer services to call centres beyond their boundaries. However, George Foggo, Unison branch secretary, argued that schemes in other boroughs had 'failed to improve customer service, because they undermined the link between local knowledge and quality service delivery'.
He added: 'They have also created a two-tier workforce and led to deteriorating terms and conditions for employees. We intend to ballot our members over strike action in January, unless the council reconsiders its plan.'
Under the Transfer of Undertakings (Tupe) regulations, wages, pensions and conditions are protected by law, but Foggo believes it will be in the successful bidder's best interests to relocate.
'Setting up the call centre away from Westminster will save money on wages, and fewer current staff will relocate, ensuring that employees will be recruited on cheap, unprotected non-Tupe contracts with poor pension provision,' he said.
A council spokesman told Public Finance any decision regarding the relocation of staff would involve consultation. 'CSI represents a milestone in the council's drive for improved customer care and will make a real difference to our ability to deliver services,' he said. 'We will be liaising very closely with our staff and unions throughout this process.'
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