Glasgow outsourcing tax scam removes democratic control and attacks fair pay

STUC: by Chris Bartter

UNISON has condemned Glasgow council’s increasing reliance on outsourced trusts and Limited Liability Partnerships (LLPs) to deliver public services. Around 15,000 staff are employed by nine LLPs, trusts and partnerships in the city.

In a speech to the STUC, Mike Kirby, Scottish Convenor and Chair of Glasgow City Branch, denounced the rush to outsource services as a tax scam that abandons democratic control, and allows the council to avoid its legal duty to pay men and women equally.

Mike said, “A recent Glasgow Council report into these ‘arms length external organisations’ admits that these ALEOs are a tax scam, that they lead to loss of democratic control by councillors, and that they can avoid more equal pay claims because they have fewer comparators. “So much for the Labour Government’s public sector equality duty.”

Mike also pointed to the farce created by an earlier outsourced organisation when the Glasgow Housing Association Ltd awarded one of their repairs and maintenance contracts to a private building company - Connaught - only to find they couldn’t meet the contract specifications on covering the workforce pensions.

Mike said, “Connaught had to be sacked and that workforce returned to their previous employer, City Building, after they spent two days travelling around the city - from Hampden Park, to Connaught, to GHA, to Glasgow City Council.”

Moving the composite motion on Public Services, Mike pointed to the huge waste of taxpayers money being paid to consultants to recommend efficiencies and shared services. Billions of pounds that should have been spent on the services themselves.

The composite will set out a charter to defend and build on the public service consensus in Scotland. ..More on STUC pages

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