Workplaceupdate

PFI – Three consultation documents are currently in circulation covering local government, education and housing. The first covers the principles underpinning the operation of the private finance initiative (PFI) for local government, highlighting the statutory regulations that have to be taken into account. It also looks at how to bid for the best value initiative within the context of a PFI contract, and puts forward a selection of model clauses that could be included.

The education consultation document separates education service PFI contracts into single and multiple schools. It also highlights relevant issues omitted by general guidance issued by the Treasury taskforce.

The (closed) housing consultation raises fundamental issues that may arise during the life of a housing contract. These include council house sales and closure of part of a local authority housing estate. A public consultation was due to follow this month.

Stakeholder pensions – The DSS has issued a consultation document on the regulations governing stakeholder pensions, which come into operation in April 2001. Employers have to offer these to staff who qualify but are not included within a company scheme.

Agency workers – Before the European Union summit in March, the European employers’ confederation, UNICE, agreed to delay negotiations on EU proposals to regulate temporary and agency workers, to allow a mandate to be drafted ensuring that flexibility in this area is not diminished in any member state.

Part-time workers – Implementation of new regulations on part-time workers, due to come into effect on 7 April, have been delayed until the summer to allow acclimatisation. The rules mean all part-time workers must be treated equally with their full time equivalents within a company. This may include access to pensions, company cars, share option schemes and other benefits. Dissatisfaction continues with the content of the regulations and the way in which the consultation was carried out. The Trades Union Congress has mounted a court challenge to them. The House of Commons employment select committee was highly critical of the regulations and the consultation.

Public private partnerships – HM Treasury published a major policy statement on public private partnerships at the end of March. It contained few new proposals but is a valuable restatement of the government’s commitment to working in partnership with the private sector.

House of Commons select committee report on PFI – Published towards the end of March, the committee’s report makes interesting and satisfying reading. It fully endorses PFI in appropriate circumstances. It expresses concern over the composition of public sector comparators and calls for their better construction. While welcoming the creation of PUK (a state-backed private sector advisory bank), the committee expresses strong reservations about its ability to take a stake in projects. This is likely to be adopted as government policy.

The committee recommends that the different terms and conditions between ‘transferred’ staff and new recruits taken on by the private sector service supplier should be investigated. This could see the employer being saddled with terms and conditions inherited from the public sector rather than being free to negotiate with new employees.