Bargaining on Shared Services Briefing No 147

December 2006

Introduction

In May 2006 the Scottish Executive published a consultation paper A Shared Approach to Building a Better Scotland- A consultation paper on a National Strategy for Shared Services. This paper is part of the ongoing Efficient Government Initiative which aims to improve services delivery and cut costs. The Executive's stated aim is for "Public Sector organisations in Scotland to receive their common business support services from a small number of highly professional, customer focussed, national and/or regional shared service operations".

The proposals contain clear delivery structures and PSOs are already on their way to implementing these changes. (See P and I briefing 137)

These proposals if implemented have serious long term implications for UNISON members. Members could find their post transferred to another employer for example a new body delivering a service to a number of local authorities. Not only does this have implications for terms and conditions of employment but the post could be relocated to another area or employer.

European procurement rules mean that the provision of shared services could be opened up to tender and therefore to privatisation.

Summary of responses to Executive

A number of groups supported the points made by UNISON during the Scottish executive consultation.

Key Points

• Executive reform initiatives not joined up
• Loss of jobs particularly from rural areas moving to centre
• Loss of local control and democratic accountability
• Tensions between local and national initiatives
• Local suppliers may be excluded from opportunities/Not enough competition to prevent large companies gaining control
• Savings figures not robust and costs underestimated

Key Concerns:

• Privatisation via sharing with private provider of services
• Privatisation via EU procurement rules forcing the shared service provider to go to open bidding
• Staff moving to new employer Change of employer, changes in terms and conditions, relocation, job losses.

Focus groups run with members of the public for the Executive also highlight these concerns

Planning ahead

Shared services are becoming central to the public sector reform agenda. Private companies are queuing up to take over services. Employers are moving quickly with a range of schemes. Moray Council has been meeting with up to eight others to discuss shared financial services. Glasgow and Edinburgh have pathfinder status; they are trying to make savings by standardising best practice within and across organisations and are looking at increased sharing of services. Orkney and Shetland are exploring many partner agencies including the NHS in their attempts to improve efficiency. There are plans to build national capacity for care procurement and online service for shared recruitment and public notices and moving the planning process to an electronic rather than paper based system. Even if there are no detailed proposals as yet in your area it is likely there will be soon. Branches need to be planning now for detailed negotiation with employers and drafting ideas for campaigns. It is vital that the key members of your branch are up to date on shared services in general and the key issues in your area with regard to potential reorganisations of departments or sharing services with external partners.

Bargaining checklist

When your employer produces plans read through the detailed proposals. Work out which service/s are affected directly and indirectly.

• Gather information in order to inform and consult members.
• Collate and discuss key points in proposals
• Decide on the make up of your negotiating team

Key information checklist

There will be differing issues depending on the choice of partner and your own local conditions.

• Who is/are the proposed partners

• Nearby authorities
• Any authority
• Any public body
• Voluntary sector
• Private sector
• What are the proposed cost savings?
• What are the costs incurred are these realistic?
• Are they taking into account all costs?
• Have these savings been realised elsewhere?
• What problems have others encountered with similar plans?

Key concerns: job losses, relocation, changes in terms and conditions, deskilling, stress de-motivation of staff. There will be others in your workplace depending on the detail of the proposal.

Organising your campaign

Branches should inform and consult with members about the proposals as soon as possible. Branches could also consider joint meetings with branches in any proposed partner organisation and other workplace unions to ensure a coordinated approach. Will the local media be interested?

It is important to use a variety of communications methods to contact members: branch meetings, newsletters notice boards etc. This will be an excellent opportunity to recruit new members so ensure you inform as many staff (and not just members) as possible of concerns about any proposals and are prepared to deal with membership enquiries.

Surveys of members can provide good evidence of how people are feeling about proposals for meetings with management.

Do not just say no: take the opportunity to offer alternative proposals. Staff delivering services are well placed to put together proposals for genuine efficiency improvements in service delivery. Consult with members to draw up alternative proposals and research other solutions. What has happened elsewhere? e.g. can IT be used to make savings without physically relocating staff.

Section 52 guidance

Statutory Guidance to Local Authorities on contracting (section 52) will apply to shared services contracts. The guidance is available from: http://www.scotland.gov.uk/Publications/2006/05/11160409/0) This intended to protect the terms and conditions of transferring employees and so reduce the scope for a two-tier workforce in the public sector. If the shared service involves PPP then the PPP protocol applies

Further reading

Department for Communities and Local Government
Rethinking Service Delivery
http://www.communities.gov.uk/pub/238/
RethinkingServiceDeliveryVolumeThree
SharedServicesandPublicPublic
Partnerships_id1501238.pdf

Structures for service delivery technical notes http://www.communities.gov.uk/index.asp?id=1501231

Structures for Collaboration & Shared services technical notes http://www.communities.gov.uk/index.asp?id=1501226

Authority examples http://www.idea-knowledge.gov.uk/idk/core/page.do?pageId=5098875

E government articles:

Scottish Executive http://www.publictechnology.net/print.php?sid=5215

Clackmannanshire & Stirling http://www.egovmonitor.com/node/6365

Surrey: http://www.egovmonitor.com/node/5863

Liverpool http://www.egovmonitor.com/node/5979

General advice

http://politics.guardian.co.uk/
publicservices/comment/0,,1811712,00.html

Contacts:

www.unison-scotland.org.uk