Transfer bonus for civil service bids
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by Amanda Bradbury • The Government is prepared to bypass EC employee transfer rules which could have stopped hauliers winning millions of pounds-worth of work contracted out from the civil service (CM 1117 March).
Transfer of Undertakings regulations would not apply if a private haulier won a contract and moved the operation to a new site, so avoiding staff transfers, says a Home Office source.
The Government's stance has been welcomed by Exel Logistics, which is talking to the Ministry of Defence about a number of contracts, and by Beck & Pollitzer, which has appointed a government sales manager to look into civil service contracts.
According to Government sources they could lay off civil service workers following a successful private bid which did not transfer staff. Redundancy costs would be added to bids.
But civil service unions say they will fight redundancies made following any successful private bids which involve site but not staff transfers.
Stephen Gibbons, head of employment law services at Incomes Data Services, says there is no clear instance of the regulations applying where buildings and staff are not transferred. If the Government is right, he adds, "contractors are free to do what they want with terms and conditions".
EIJ If signed, a contract won by Beck & Pollitzer to provide computer, warehouse redesign and distribution advice will be referred to the Public Accounts Committee, say three civil service unions.