26 September 2003
Unions are warning of a growing campaign to undermine the local government deal on the two-tier workforce, as pressure mounts to expand it across the public sector at next week's Labour Party conference.
Unison said it was 'actively dealing' with allegations that two London boroughs, Westminster and Wandsworth, were attempting to dodge parts of the Best Value Code.
Introduced in March this year after 18 months of bitter wrangling, the code gives new workers in outsourced contracts terms and conditions 'no less favourable' than those of their transferred colleagues.
Both Unison and private sector sources said the councils had actively been looking at avoidance policies for 'political and financial reasons'.
Both authorities, under Conservative leadership, have brought in the private sector to deliver whole swathes of their services, while keeping council tax levels to a minimum. Last year Westminster outsourced 67 of its administrative services in a 15-year £1bn deal to consortium Vertex.
'There will be an avoidance industry. The code's not popular and if it didn't make a difference people wouldn't try and get around it,' said Malcolm Wing, national secretary at Unison.
'We are monitoring certain situations and if weaknesses are found we'll have to plug the gaps. There are political reasons for wanting to do this – some want cheap public services.'
But a spokesman for Westminster denied the allegations and said 'contracted staff are critical to our success.' He added: 'We work very closely with contractors over staff conditions. That is in the interests of our customers and our employed or contracted staff.'
John Williams, group director of the CBI's public services division, said both local authorities and the private sector were looking positively at ways to implement the code. 'We are committed to seeing the principle applied in practice in the way it was envisaged,' he said.
Unions are anxious to smooth out any difficulties in local government in order to provide an effective model for the rest of the public sector.
Next week's Labour Party conference will be the flashpoint, with an announcement on expansion expected from Prime Minister Tony Blair.
A Unison motion has ratcheted up the pressure and the GMB has said it will press the government to expand its commitment. Ministers are openly expecting a rocky ride.
But comments by Unison general secretary Dave Prentis this week suggest that the decision could still be open, with ministers looking for a quid pro quo from unions.
Prentis told a Fabian Society meeting that aides at Number 10 had offered to extend the deal but only if Unison dropped opposition to foundation trusts.
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