New code for private contractors taking employees from public sector

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
provide a “welcome protection for new recruits”.

Announcing the proposals, secretary of state for transport local
government and the regions 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







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