Falkirk West MP, Eric Joyce, is pleased to endorse a recent Government announcement effectively ending the two-tier workforce that has emerged in some companies operating contracted out local government services.

The announcement, made recently by Minister for Transport, Local Government and the Regions, Stephen Byers MP, follows campaigning by trade unions and lobbying by MP's for safeguards to be built into contracts being awarded for the provision of local government services.

The best value regime for local government has meant that private companies have begun to win more and more contracts to provide services previously provided by local government. Whilst workers who had been transferred from local government to these private companies upon the winning of contracts had their pay terms and conditions of employment protected via TUPE legislation, any new employees recruited by the company could not be guaranteed the same pay terms and conditions as their fellow employees.

Speaking today Eric Joyce MP said

‘The best value regime in local government is about improving the quality and value of local government services to the public.

Some unscrupulous employers had abused the best value system and undermined the quality of the service being provided by gradually replacing the contracted out workforce with new employees on poorer terms and conditions.

This was an unacceptable practice and one which I have pursued since first being elected and I am delighted that the work that I, other parliamentary colleagues and my own trade union UNISON have carried out to have this practice changed has had such a successful outcome.

By ensuring blanket terms and conditions and a reasonable level of pension provision for present and future staff are agreed as part of the initial contract, no private companies will be able to win contracts by cutting the pay and conditions of staff and the quality of services will be protected.'

Notes to Editor

• Eric Joyce MP is also the convenor of the Scottish Group of MP's who are members of the local government and health service trade union, UNISON.
• A statutory code regarding employee terms and conditions and pension provision will be incorporated into contracts and will be enforceable and monitored. This code will ensure that new staff will be entitled to broadly comparable pay and conditions to local government staff and contractors will be required to offer new staff working on local authority contracts alongside transferred staff a reasonable level of pension provision.