Update: Shared Services Privatisation & off shoring

To: Branch Secretaries in Efra, BIS and the DWP Groups                                                                                                                               (Please bring this briefing to the urgent attention of all your members working in HR, finance and procurement transactional processing services/shared services) All Other Branch Secretaries (For Information) 11 October 2013                   BB/04/13(R) Update:  Shared Services and ISSC2, PROTECT CIVIL SERVICE JOBS AND SERVICES NO TO OFFICE CLOSURES NO TO OFF-SHORING Your PCS representatives continue to meet with the Cabinet Office, DEFRA, DWP and UK SBS Ltd (BIS). We have made representations to the highest levels to attempt to stop any staff transfers to SSCL on 1st November. It is clear that their proposals if allowed to go ahead is driven by the need to deliver cuts, “efficiencies”, and the LEAN agenda and will mean: job losses and site closures within a year.   off-shoring work staff transferring to SSC Ltd losing civil service status We met again with management representatives from the Cabinet Office, DEFRA and DWP yesterday.  Further meetings are planned. The Cabinet Office, DWP and DEFRA view, that key issues such as job protections, location protections and off-shoring, can be handled post-transfer, is not only utterly unacceptable, but entirely contrary to established best practice on the transfer of staff from the public to the private sector.  We believe that the failure to properly carry out TUPE requirements to a reasonable timetable leaves Departments in a legally vulnerable position, and we are consulting our lawyers to explore our legal options NO CASE FOR CHANGE PCS continues to argue for sight of the case justifying the transfer of work out of the Civil Service and Public Sector to a private supplier.  We reject the need to transfer and continue to push our case that these services should be delivered from the public sector, by Civil and Public Servants. Experience tells us that it will be impossible to reconcile the commercial aims of Steria with acceptable standards of data protection and service delivery nor with protecting the wider public interest. Steria are already clear that this move will not deliver the cost savings they need to without off-shoring, site closures and job cuts. Unless and until we can be re-assured to the contrary then our position remains in opposition to these proposals.
TIMETABLE TOO SHORT PCS, together with other unions including FDA, have made direct representations to Stephen Kelly, the Governments Chief Operating Officer, to argue that the transfer date should be delayed to allow meaningful consultation with the Unions. His response, although introducing an element of doubt in that it recognises that the “planning assumption” is 1st November, that the timetable is “indicative” and “may (be) subject to change” is unacceptable.  It does not give the firm guarantees we require if we are to begin meaningful consultation and make progress in these talks. We have continually explained that we want to achieve a quality outcome for staff and shared services.  In doing so, we seek to protect the employment and best interests of the staff involved.  We remain unconvinced that the process of due diligence has been fully carried out, that a full range of job security and redundancy avoidance measures has been conducted, that discussions around pensions have been or even can be completed to the current timetable of November 1st, and that the necessary harmonisation of different employers’ T&Cs can be discussed and agreed pre transfer.  We have now requested a meeting with Minister, Francis Maude PROTECT MEMBERS JOBS AND CONDITIONS We continue to argue for a contractually binding legal agreement in place to protect any members transferring.  This has to be between the current employer, the unions and the new employer if it is to have any meaning.  The Cabinet Office, DEFRA and DWP view – that work and people can be transferred without proper protections in place to protect jobs and services - is utterly unacceptable.  It is astonishing that your current employer seems prepared to leave you vulnerable in this way. JOBS MUST BE PROTECTED It is clear that Steria plans to cuts jobs, close offices and off shore work.  That is the only way they can deliver the cost savings required by Government.  DEFRA, DWP and Cabinet Office are refusing to share with us their planning assumptions and appear to be taking little responsibility for the fate of their own staff if this transfer goes ahead. We continue to argue that job protections should be in place for at least 5 years including  the retention of Civil Service status (including exploring secondments) application of the current agreed Civil Service Protocols to avoid compulsory redundancies no compulsory redundancies   Furthermore we have argued that all staff should have on offer a choice including the availability of packages, secondments and redeployments in the event that they do not wish to transfer to SSCL. NO TO OFSHORING We have argued consistently that no jobs or functions should be off-shored.  It is clear from discussions that this is driven by savings and will result in our members losing their jobs.  What is absolutely astonishing is that Steria confirmed yesterday in our meeting that the appropriate accreditations will not be achieved for them to –offshore work in time for transfer by 1st November.  This is an outrageous state of affairs and argument alone for the timetable to now be put on hold. NO TO OFFICE CLOSURES It is clear that Steria plan to close sites.  This is another area where the Cabinet Office, DWP nor DEFRA were prepared to set out their planning assumptions.  It is not enough to sort this all out post transfer and with only a guarantee of no change for only 6 months. We must have protections in place for at least 5 years PROTECT TERMS AND CONDITIONS We continue to argue that all terms and conditions should be harmonised to the best before transfer.  This is perfectly possible if good will is shown by DWP, DEFRA and Cabinet Office.  At the moment this doesn’t seem likely and they could give us no assurances on what they feel is appropriate beyond what they have to do under TUPE law.  We also want agreements in place that nothing will be changed in the event of transfers unless and until agreements have been reached with PCS. PENSIONS We have argued for an agreement above and beyond requirements in legislation. The arrangements coming into force 8th October will mean staff transferring will be remaining in their civil service pension scheme with no change to contributions or benefits. Steria and the CO have now confirmed this, and that civil service compensation scheme should apply in any future redundancies. This is welcome and we await this confirmation in writing. However, our concerns are around members who may have to seek redeployment within Steria moving away from their current role and civil service terms.  If the move is within the SSC Ltd Company then they will still remain in the civil service pension scheme and if in future they move to a civil service contract where ‘new fair deal’ applies they will be able to stay in the civil service pension scheme. We want an agreement to extend this to other terms and conditions including redundancy arrangements. We also want confirmation that if members are forced into posts in Steria then agreed pension arrangements are in place. We are awaiting Steria’s proposals on this..  It is also vital that arrangements for auto-enrolments must be in place from day 1. CONCLUSION We are now at a vital stage.  We expect responses from the Cabinet Office on Tuesday and a meeting with the Minister later in the week.  If these are not helpful, all legal options to force a pause and rethink will be taken forward vigorously.  PCS will conduct a vigorous campaign including industrial action to defend members jobs and the services they provide. The rush to transfer shared services needs to be halted, and we need to make plain to the CO, to MPs, the media and the public that we will not stand by and let it happen.  Please be ready to support this action in any appropriate way.  Please attend any members meetings called to discuss this. Please talk to and sign up any non members – ultimately all civil servants will be affected.  Please go to http://action.pcs.org.uk/page/speakout/save-our-shared-services and send the e-action letter to your MP. CHRIS BAUGH ASSISTANT GENERAL SECRETARY MARION LLOYD NEC