15 November 2002
The agreement, thrashed out in seven months, effectively puts the Scottish public sector ahead of its English counterpart. Civil servants in England have yet to publish the final outcome of stormy negotiations earlier this year, but the unions have now rejected initial proposals.
Tony Blair's promise at the Labour Party conference to look again at the issue is yet to materialise.
The Scottish Executive described the agreement as a 'significant breakthrough'. Unlike in England, it was negotiated without the private sector, which will be bound by the agreement.
The code, which will apply to all public-private partnerships, will be written into all new contracts, and staff will not be obliged to transfer to the private sector. Those unhappy at the prospect will be offered redeployment while transferring workers will be fully protected by Transfer of Undertakings (Tupe) regulations.
Any changes to workers' terms and conditions will require a negotiated agreement with unions, and contracts will be awarded to companies that demonstrate good employment records.
Crucially, the Scottish agreement appears to go one step further than the English proposals, stating that new staff will be employed on terms and conditions 'no less favourable' than those of existing employees. New English recruits are to be offered 'broadly comparable' terms, which unions claim is too vague a phrase and open to abuse.
Unison in Scotland said it welcomed the agreement but said it would continue its campaign against PPPs. 'It is a significant step forward in preventing future two-tier workforces,' said Matt Smith, Unison's Scottish secretary.
Finance and Public Services Minister Andy Kerr said it was a good deal for public sector staff.
But English unions confirmed that there was still no move on the two-tier review. Notwithstanding the government's defeat at the Labour conference, sources said they now feared that the much-promised review would be conducted internally by civil servants.
PFnov2002
