21 February 2003
Unions launched a campaign this week to expand local government's deal to end the two-tier workforce into defence and health.
As the CBI and the Business Services Association savaged last week's agreement, the six defence unions, including the T&G, GMB and Prospect, began lobbying Defence Secretary Geoff Hoon to offer new workers the same conditions as their transferred colleagues in privatised contracts.
Jack Dromey, the T&G national organiser, said: 'I wrote immediately to Geoff Hoon urging early action. Next we will approach Alan Milburn. The two-tier labour market should be confined to the dustbin of history.'
Under the new code, announced on February 13, new workers in local government will be offered terms and conditions that are 'no less favourable' than transferred employees. The code also contained provision for pensions and an arbitration clause to resolve disputes. It was a major breakthrough for public sector union Unison, which had campaigned for nearly two years.
The private sector was furious. The CBI accused the government of 'moving the goalposts' and locking the private sector out of last-minute negotiations. 'The government wants to improve the delivery of public services but this is a significant step backwards and raises real questions about whether ministers are ready to take the tough decisions necessary for meaningful reform,' said CBI director general Digby Jones.
PFfeb2003
