Unite calls for ballot on Tower Hamlets’ plans to hive off NHS services to a social enterprise

18th February 2010

Unite, the largest union in the country, is calling for a ballot of staff at NHS Tower Hamlets in east London over proposals to hive off NHS services into a social enterprise.

Unite, along with the other staff side unions, will be asking managers at the trust, which covers one of the most deprived areas in the country, to hold a ballot of staff, as to whether they are in favour of transferring to a social enterprise.

Unite described the social enterprise move as ‘semi-privatising the most deprived’.

Unite’s call comes after the Department of Health’s announcement that the NHS should be ‘the preferred provider’ of choice. This means that outside providers can only be asked to tender if a trust is deemed to be failing and has not taken remedial measures.

Managers are being asked to reconsider their plans for a social enterprise, which are commercial organisations, one step removed from the NHS proper, which can win – and lose – contracts to provide services to the NHS for a limited period of time.

Unite said that there had been an agreement with the London Strategic Health Authority that the trust would remain as a direct provider for the next two years and now government was forcing the trust into another option with a tight timescale for a decision to be made.

Unite national officer for health, Karen Reay, said: ”Tower Hamlets is one of the most deprived areas of the UK. If ever there were a case of joined-up services under the NHS, Tower Hamlets is it. What the managers and their highly paid management consultants are proposing is semi-privatising the most deprived – and that is unacceptable.

”It is clear that social enterprises are a leap in the dark in terms of provision of services and the employment conditions and pensions of NHS staff that could be severely eroded.

”Also, the viability of the financial model proposed could be jeopardised, if VAT is charged on its services not directly related to health care, such as marketing and legal fees, and treatments that may not be regarded as essential.”

If the social enterprise loses its contracts to, for example, a North American private healthcare company in five years time, jobs could be lost and services to the public could become fragmented. The ethos of a NHS providing a unified, joined-up service for patients could disappear.  

ENDS
Notes to news editors:

  • Unite has welcomed the government’s statement, made last autumn, that the NHS is ‘the preferred provider’ of choice when it comes to delivering services, rather than private sector organisations.
  • In his letter to the chief executives of the strategic health authorities and primary care trusts, NHS chief executive, David Nicholson said: “The NHS as the preferred provider is about getting the best care for patients and looking after the NHS staff who care for them. Our aim is to ensure that NHS staff are treated fairly and engaged in decisions.”
      
    The Patchwork Privatisation of Our Health Service – a special report can be downloaded from www.unitetheunion.org/health and then clicking on Health B4 Profit campaign.

For further information, please ring: Karen Reay, national officer, health 07798 531 004 or Shaun Noble, communications officer (health sector), 020 7420 8951 or 07768 693 940


Email to a friend