Public sector union Unison has welcomed the government's "breakthrough" proposals to ensure fair treatment of new recruits working for private companies on local authority contracts.
The union said the proposals would stop private companies from winning contracts by cutting the pay and conditions of staff and should provide a "welcome protection for new recruits".
Announcing the proposals, local government secretary Stephen Byers said they would prevent good contractors with high employment standards from being undercut by those willing to abuse the system.
Under the proposals, a new code of practice would be drawn up and written into individual contracts obliging contractors to offer new staff "fair and reasonable terms and conditions", broadly comparable to those of transferred employees.
The code would also require contractors to match employee pension contributions up to a maximum of 6 per cent, and to recognise the role of trade unions in the contracting out process.
Unison general secretary Dave Prentis said the union regarded the 6 per cent maximum pension contribution as "a floor" and would continue to press contractors and local authorities to admit new staff to the local government's final salary scheme.
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