Coalition further opens door for private companies to take-over public services

13 December 2010

A further chipping away at the public service ethos, and the pay and conditions of public sector employees was condemned by Unite, the largest union in the country, today (Monday, 13 December).

Unite, which has 250,000 members in the public sector, was responding to the coalition’s announcement that it was withdrawing the code of practice on workforce matters, which is also known as the "two-tier code".

This code had ensured that new employees working alongside former public sector workers in outsourced services got public sector benefits, such as the same pay and pensions – but this will no longer be the case.

Unite’s Assistant General Secretary for Public Services, Gail Cartmail said: ‘This is further evidence that the government is progressively chipping away at the public service ethos and we are now faced with private companies putting downward pressure on wages and terms in the race to gain contracts.’

‘Today's announcement applies to central government contracts. Cabinet Office minister, Frances Maude is writing to all relevant Cabinet members and we are expecting a domino effect. The biggest issue is on comparable pensions for new starters.’

‘This is all part of the coalition’s bigger agenda of privatising and outsourcing as many government services as possible in the misguided belief that by private firms squeezing workers’ conditions to make more profits, a better service will ensue. The very opposite is likely to happen.’ 

-ends-

Note to news editors:

For further information, please ring Shaun Noble, Unite communications officer on 07768 693940

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