Workers rights freeze Best Value review

21 Mar 02
Almost six months to the day since Stephen Byers announced his review of Best Value to assuage union concerns about workers' rights in outsourcing deals, progress has ground to a halt.

22 March 2002

The review group, which brought together representatives from the unions, local government and the private sector, was supposed to report its findings to the local government secretary in December. But, three months after the deadline, the panel has no further meetings scheduled and remains deeply divided on the so-called 'two-tier workforce'.

A source close to the review told Public Finance that, although the parties were near agreement on many of the issues, there was stalemate on the protection of workers' terms and conditions. The paralysis that has hit the review in recent weeks has meant that nothing has been done to resolve the continuing stand-off.

The source suggested that the review has become less of a priority for ministers and officials at the Department for Transport, Local Government and the Regions, in the wake of the ministry's recent well-publicised problems.

'No-one really knows what is happening at the moment and how things are going to move forward. We all want to find a solution to this problem, but at the moment I'm not sure how this is going to happen,' the source added.

The public sector unions are sticking to their demand for legislation to ensure that staff who join a contracted-out service receive the same terms and conditions as colleagues who transferred to the private sector under Transfer of Undertakings (Tupe) regulations.

But the CBI says such legislation would be bureaucratic and inhibit commercial freedom. CBI director general Digby Jones wrote to Tony Blair in January outlining a voluntary code of practice that its members would sign, which would promise terms and conditions that were 'fair' but not necessarily comparable to those of existing staff.

Jack Dromey, national organiser for the T&G union, reiterated the need for legislation to protect workers' terms and conditions.

'The original commitment was three months and here we are six months on with no end in sight,' he told PF. 'A pious promise will never be acceptable. We are pressing for robust and enforceable controls.'

But Amanda McIntyre, head of modernising government at the CBI, warned that a prescriptive approach risked frightening off many contractors. 'Remember CCT? This used legislation to deliver fair competition but resulted in poor service delivery, falling standards and conflict. We want a solution that will keep the best of the private sector in this market, but they will not tolerate a CCT-style environment.'


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