CBI report 'fundamentally flawed' warns UNISON

UNISON, the UK’s largest union, said today that a Confederation of British Industry (CBI) report, claiming that billions could be saved by privatising public services, is ‘fundamentally flawed’.

The report is based on an assumption that savings of 11% can be made through outsourcing or privatisation – a figure that has been ‘plucked out of the air’ by the CBI. This assumption is then extrapolated and applied to more than £200bn of public spending.

The 11% savings calculation does not take into account the often huge knock-on costs associated with privatisation including procurement, tendering and contract management. It also omits to mention the huge cost to the taxpayer and local people when the private sector fails, or that some public bodies have brought public services back in-house after contracts have failed.

The report also flies in the face of public attitudes to privatisation. Recent polling by ComRes for UNISON* reveals a lack of public trust in private companies providing public services. The polling reveals a widespread awareness amongst the public that private companies fail to deliver on their contractual obligations and that privatisation leads to lower quality services.

Dave Prentis, UNISON General Secretary, said:

“This report is fundamentally flawed. Where is the proof that 11% savings can be achieved by privatising public services? The CBI has plucked this figure from the air. All the evidence shows that privatisation is a costly failure that the taxpayer can ill afford. Only last week MPs felt it necessary to call for a blacklist of firms that have failed to deliver on their contracts.

“Privatisation failures carry heavy human costs – just ask an elderly resident of an ex-Southern Cross home. And, as the G4S Olympic fiasco clearly shows, when the private sector fails, the public sector has to pick up the pieces – including the cost.

“Turkey’s don’t vote for Christmas, and the CBI is hardly going to call for less businesses involvement in public services. But recent polling has revealed that privatisation is deeply unpopular with the public. If the government pushes through with the CBI’s vision it would face the wrath of voters at the ballot box.”

UNISON is calling for an urgent inquiry into privatisation and outsourcing, including the companies that provide public services, their employment practices, the quality of services they provide, as well as the profits they make at taxpayers’ expense.

*Recent ComRes polling for UNISON* shows that

62% do not trust private companies to run public services.

Only one in five (20%) believe that privatisation has led to better quality services to the public, nearly three times as many (55%) believe that public services are of worse quality under privatisation.

81% believe that private companies either frequently or sometimes fail to meet their contractual obligations.

Privatisation failures

The CBI report features case studies including the company May Gurney that provides recycling services in North Somerset, which it holds up as a success story. However, after more than 7000 public complaints about the service, the company was recently fined more than £61,000. The company is also reportedly facing severe financial difficulties, with a recent 41% drop in its share price – leaving these vital public services in jeopardy.

Only last week it was reported that Serco, a private company running out of hours GP services in Cornwall, had given false data to the NHS on 252 occasions. This followed an inquiry, after fears were raised that the service was so understaffed, it was unsafe – concerns about the service and the effect on the public remain.

Six patients at Lister Hospital suffered irreversible sight loss after they received poor aftercare when they were treated by a private company owned by construction firm Carillion.

Despite failing to deliver on its Olympics contract, G4S boss Nick Buckles has admitted that he expects to be paid its £57 million management fee in full, despite the public sector – the army – stepping in to keep the Olympics safe.

Care home company Southern Cross collapsed in June 2011, leaving the company’s 31,000 vulnerable residents facing huge uncertainty. The company had been operated by a private equity firm that made money from a complicated sale and leaseback arrangement with its buildings.

In August this year, some workers at private care home Winterbourne View received a prison sentenced after they were caught on camera abusing vulnerable patients. The home has since been closed down.

UNISON takes fairness fight to European Court

UNISON, the UK’s leading public sector trade union, today (20 September) took its fight for fairness in the long-running Alemo-Herron & Ors v Parkwood Leisure Ltd case, to the Court of Justice of the European Union.

UNISON is arguing that 24 members transferred from the London Borough of Lewisham to Parkwood Leisure have the right to continue to benefit from nationally agreed pay and terms set by the local government pay negotiations.

The Advocate-General's opinion in this 7-year long case is expected on 31 January 2013.

UNISON General Secretary Dave Prentis, said:

“We are taking our fight for fairness all the way to Luxembourg because we believe that we have a strong case. Under TUPE regulations, Parkwood employees transferred from the London Borough of Lewisham should be entitled to nationally agreed pay rises.

“This is an important case that will have implications for the thousands of workers that have been transferred out of the public sector or are set to be transferred. This is especially important in the current climate.”

Beecroft lite

UNISON, the UK’s largest union, today warned that the ‘Beecroft lite’ proposals to slash employment rights will only fuel insecurity, making the UK’s unemployment levels higher and the recession worse.

These plans will cut unfair dismissal awards, deter people from taking claims against rogue employers, and put pressure on people to sign settlement agreements, under which people sign away their right to taking an unfair dismissal case at a later date. Coupled with new fees for Employment Tribunals due next year they represent a ‘lite’ proposal of those originally proposed by venture capitalist Adrian Beecroft in his report to Government.

Dave Prentis, UNISON general secretary, said:

“These ‘Beecroft lite’ proposals are still a blatant attack on workers’ rights. The UK already has some of the weakest labour laws in Europe. Weighing the scales heavily in favour of bosses - who can hire and fire at will - will only fuel insecurity, lengthening the dole queues and making the UK’s damaging recession worse.

“UNISON will also be campaigning hard against plans to amend the TUPE rules that protect workers’ rights when they are transferred from one employer to another. We suspect that in the name of simplification the Coalition really want to make it easier transfer public services to the private sector, and spark a race to the bottom on pay, terms and conditions.”

Notes to editors:

UNISON is backing a campaign against these measures asking MPs to vote against Enterprise and Regulatory Reform Bill – within which many of these rules will be legislated:http://www.unionstogether.org.uk/under-attack

UNISON’s evidence to the Enterprise and Regulatory Reform Bill consultation can be found here: http://www.publications.parliament.uk/pa/cm201213/cmpublic/enterprise/memo/err48.htm

31/08/2012

House price rise - UNISON response

UNISON, the UK’s largest union, is today calling on the government to start an urgent programme of building affordable homes. A survey by the Nationwide Building Society out today reveals that UK house prices have bucked the recession to rise by 1.3%.

Increasing the UK’s housing stock would not only ease pressure in the housing market, but would help turn the corner on the economic downturn. Five million people – 2 million households – in the UK are currently on housing waiting lists.

Dave Prentis, UNISON General Secretary, said:

“The government needs to be bold to help our country recover from the recession. Initiating a programme of building affordable housing would stimulate growth and give thousands of low paid families the chance of a decent home.

“But when the UK urgently needs affordable housing, the government has cut funding for social housing by more than £4 billion. What it could and should be doing is making capital funding available to housing associations and local authorities so more homes can be built as a matter of urgency.