Trade union fears that newcomers in transfer organisations will be on worse terms than existing staff have proved a stumbling block to best value, the government has admitted.

Local government minister Nick Raynsford said that fairness in staff terms and conditions was a key issue.

New safeguards thrashed out by the best value review group he chaired recently should ensure councils take a wider view on the best service procurement methods in future, he said.

In a letter to DTLR secretary Stephen Byers, Raynsford stressed the government's continuing drive for innovation. He acknowledged that making changes to the best value regime would not lead to improvements by itself.

"They will need to be complemented by actions to raise awareness, build capacity and disseminate best practice," he said.

The old compulsory tendering practice of opting for the lowest price was not acceptable, he said. But he warned that councils and their partners must keep a realistic view of what can be achieved within the funds available, and not raise false hopes.

Raynsford said staff and union involvement in procurement decisions must be encouraged, and they must be consulted before important decisions.

Unison and other public service unions have campaigned strongly against the 'two-tier' workforce in voluntary transfers that in the past allowed receiving organisations to hire new staff on worse conditions.

The unions have pledged to continue campaigning for fair employment terms.

Transport and General Workers Union national organiser Jack Dromey said: "For the first time, contractors will be obliged to negotiate with trade unions on the terms and conditions of new starters, ensuring they are broadly comparable with local government.

"The groundbreaking obligation to provide a pension to new starters is also welcome. However, the failure to provide for arbitration to resolve disputes is a significant and unacceptable weakness."

Source

Housing Today