Electing a Labour government with its close links to the trade unions raises many expectations. The King’s Speech commitment to legislate policy around workers’ rights includes tackling decades of outsourcing, with the Plan to Make Work Pay proclaiming “Labour will learn the lessons from the collapse of Carillion and bring about the biggest wave of insourcing of public services in a generation.”
This comes together with plans around how to manage the NHS as it recovers from years of neglect. How then will this commitment to insourcing play out for the current dispute over privatisation in Colchester?
Staff at East Suffolk and North Essex Foundation Trust (ESNEFT, which manages service across Colchester and Ipswich) have voted for strike action to fight plans to outsource hundreds of jobs in facilities management (cleaning, catering, porters).
Despite a laughably poor business case (which the Trust has used every trick to try and keep secret) the Trust continues to push ahead with its proposals.
It can get away with operating in secret and failing to engage with staff representatives simply because these staff are deemed not to be “front line”; the Trust treats them as second class – so much for the idea of One Team.
UNISON is opposing the move and expects that, given Labour’s manifesto pledges, the Trust will be told to stop and think again. Changes to management might be necessary to restore any semblance of trust in the Trust!
UNISON has offered to have open and honest discussions of alternatives but the Trust refuses; saying it cannot go back on its decision to outsource. But it does not deny that at no stage in its 18 months of preparations has it ever properly evaluated other options as it is supposed to do.
Outsourcing has had its day – except in Essex.
Across the NHS, organisations are bringing services back in house, not contracting them out.
In the last few years support staff have been brought back inhouse at Great Ormond Street Hospital, Imperial College Healthcare in North West London, Epsom & St Helier University Hospitals Trust in South West London, Barts Health in North East London, and North Middlesex University Hospital.
The Epsom & St Helier trust statement stated:
“We have pledged to support equality, and this move is central to that commitment. … This is absolutely the right time to welcome these teams back to the NHS family, with all of the benefits that brings.”
In stark contrast ESNEFT has similar jobs outsourced in Ipswich but won’t evaluate properly bringing them back in house alongside Colchester when the current contract expires next year.
Well now the coming legislation will mean they have to do that.
Ironically a decade ago the same jobs now facing outsourcing in Colchester were brought back in house; and the management at that time told everyone how that was the right decision – because outsourcing brought risks for patients. The hokey kokey style of management!
UNISON has tried to explain to the Trust that the government is opposed to this kind of privatisation. Labour’s policy position is clear:-
“Labour will end the presumption in favour of outsourcing and oversee the biggest wave of insourcing of public services for a generation.
“The next Labour government will also examine public services that have been outsourced as part of our drive to improve quality.
“Before any service is contracted out, public bodies must carry out a quick and proportionate public interest test, to understand whether that work could not be more effectively done in-house. The test will evaluate value for money, impact on service quality and economic and social value goals holistically.
“We will also reinstate and strengthen the last Labour government’s two tier code to end unfair two-tiered workforces”.
These requirements, which place a major obstacle in the path of any attempt to outsource have until now been entirely ignored by ESNEFT.
One of the multiple failings in its still-secret business case was that this risk (and others) was not evaluated as required. It should be obvious: if outsourcing organisations have to pay equivalent terms and conditions, as required to end the two tier workforce, then they can’t make money from exploiting their workforce. So where is their profit?
The Trust’s highly biased Business Case failed to demonstrate value for money – so when it adjusts the case for the new reality it will be even worse – but they carry on regardless of the stress this is causing for staff and their families who want to stay in our NHS.
If this deal is not stopped then the good will of the trade unions towards the government will be challenged.
This is a great opportunity for the new Ministers to show that the fair deal employment policies will be made real. And a great opportunity for Health Ministers to show who is in charge and to make sure that all NHS staff are treated as One Team
Colchester should be the last time any NHS service of this kind is considered for outsourcing.
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