The 'open space' for trade union debate

Address:
Swinton House
324 Gray's Inn Road
London
WC1X 8DD

Email: info@unions21.org.uk

Tel: 020 7239 1224

Fax: 020 7278 8378

Beyond Privatisation: towards a new compact for the public sector

For the Unions 21 fringe at TUC Congress 2007, Paul Noon, General Secretary of Prospect, Hugh Lanning, Deputy General Secretary of PCS and Tom Wilson, the TUC's Head of Organisation and Services discussed what happens after privatisation.

The Warwick Agreement between the Labour Party and its affiliate unions had promised a new compact for when government contracts out public services. Tom Wilson was on hand to explain what discussions have since taken place between the government and unions. He noted that there was some initial reticence from the Cabinet Office, the government department tasked with public service reform, concerning the introduction of a compact. The agreement had envisaged a compact encompassing access to unions, skills and advice. The group are still establishing the terms of the debate for developing the compact further. There has been some movement on skills development but not on access to advice. Much more work needs to be put in and there is still some haggling to be done over which employees and which public services will be subject to the compact.

Hugh Lanning tried to put the efforts to produce the compact into context. There are currently no national agreements concerning the public services. Therefore, Hugh implied, the Cabinet Office may be finding a compact something of a strange concept to deal with. Paul Noon noted that privatisation was nothing new and unions had been facing it in different ways for forty years. Over that time the line has become increasingly blurred between the public and private sectors.

Opposition

Both Hugh and Paul emphasised their unions' opposition to privatisation - it is always the first and necessary action. Hugh said that one of the main problems for the UK is that it has rejected the social dialogue model of Europe. Lanning questioned "if the psychological will really exists to work with trade unions". In any privatisation it's about "process, process, process". If unions are treated with respect then they can play a central role in making change.

Paul lamented the tendency of the government to think that the private sector has all the answers but went on to explain the difficulties of "facing in two directions at once". First, the union must oppose privatisation. Prospect campaigns against privatisation have brought some success - most notably air traffic control becoming a not for profit company and the Forensic Science Service remaining in the public sector as a government-owned company.

But, facing in the other direction, unions must also prepare for the possibility of privatisation. Hugh Lanning agreed - unions have to be fully involved at every stage - first by arguing against privatisation; secondly negotiating any transition to privatisation; and finally supporting members in the "after-life".

The after-life?

PCS had successfully negotiated an agreement when part of National Savings was privatised and taken on by Siemens. Hugh emphasised the importance of unions being involved at the heart of the process of privatisation. Unions have to ensure that procedures are outlined on equality, pensions and job security. Companies can be receptive to a negotiated transition but only really if all companies have to adhere to this. If this process is successful it can sometimes lead to further work on the quality of work, skills or sustainability.

Noon said that there is life for unions and their members after privatisation but it brings significant problems. The tendency for private sector employers to opt for secondary or even further transfers of employment makes it hard to keep the assurances won in the transitional negotiations. Nevertheless, there are some positives to dealing with the private sector. The public sector can prove irrational in negotiations but private companies respond to direct economic pressure and, consequently, can be more willing to cut a deal.

There can be no substitute to strong trade union organisation within the public or private sector. A compact could be useful in ensuring some minimum standards or help unions get a foot in the door but it cannot replace the representation and support provided by a strong union.

The sweeter life?

During the debate that followed the panel presentations, a discussion began about the role of the 'third sector' of voluntary organisations. A number of questions were raised: Is the third sector a viable alternative to privatisation? Is it privatisation by the back door? Is life sweeter for workers in the third sector compared to the private sector? What can unions learn from each other about the voluntary sector?

All these questions could not be done justice to during a lunchtime fringe so Unions 21 will look into organising a full discussion as part of its forthcoming work programme.

If you would like to be added to our email database, please click below: