12 September 2003
Unions warned the government this week that they could 'no longer drag their heels' over the two-tier workforce after Labour's favourite think-tank said the issue was stalling progress on public services reform.
The Institute for Public Policy Research, whose director Matthew Taylor is to be seconded to Number 10's policy unit, said the government's refusal to extend a deal protecting council workers was both unfair and politically unsustainable.
In a report, launched during the TUC conference, it said the issue was damaging relations between unions and the government while the uncertainty was affecting the confidence of private sector providers.
Unions have been campaigning for the extension of the local government deal since February and have expressed surprise that the government has steadfastly refused to act.
The deal, thrashed out over months of negotiations and finally imposed by the government, guarantees new workers joining a public-private partnership terms and conditions 'no less favourable' than for existing transferred colleagues.
The IPPR said there was mounting evidence that the two-tier workforce was a real problem, with low-paid female workers particularly at risk of receiving poor pay and conditions.
It urged the government to begin a 'roll-out' of the councils' Best Value code of practice across central government. However, it warned that this should not be a straitjacket but that any model should be simple and ensure 'no less favourable' terms and conditions.
The unions seized on the report and demanded action from the government, although privately most expect an announcement at the Labour Party conference.
'The IPPR report presents a powerful case for no further delay in ending the two-tier workforce through the public sector,' Jack Dromey, national organiser at the T&G, told Public Finance.
PFsep2003
