A 12 year £267m contract from June 2001 to modernise support services with Hyder Business Services Group Limited (HBS) ( now owned by private equity group Terra Firma). 550 staff transferred from IT, finance, human resources, school support services, communications and the management of outsourced services.
UNISON campaigned for the council to keep IT services that would build council capacity, minimise risk and reliance on a single contractor, provide better employment conditions and greater staff involvement.
HBS promised to deliver: a regional business centre that would bring in new work and create new jobs; a 45 place call centre for all services; £7.8 m investment in new IT, including an integrated resource management system called SAP; £6.9 m investment in improved accommodation; a national centre for excellence in education; measurable service improvement and annual reduction of service costs of 2% ( about £900,000).
The contract was between the local authority ad HBS and there was never a question of UNISON participating in running the PPP. There was minimal consultation or trade union involvement. Trade unions are consulted prior to the quarterly Strategic partnership Management Board meetings but cannot attend meetings. A major review of the contract is underway.
HBS and Bedfordshire County Council signed up to an employment charter before the 550 staff transferred, but there has never been a review and HBS refuses to recognise UNISON or other unions either locally or nationally. The impact on jobs has been detrimental. Staff who leave are not replaced and new staff are employed on worse pay and conditions creating a two tier workforce.
The impact on services has been detrimental too. Service performance is down. There is no sign of the Regional Business Centre. The quality of school support has declined, The national Centre of Excellence in Education has been repeatedly delayed. Only a part of the investment on accommodation has taken place; and whilst the council has incurred additional costs it is not clear if the savings target has been met. The call centre and SAP have been implemented.
The lessons are that the trade union must take action before procurement starts; must recruit and organise new PPP staff; get the message across to councillors and trade union members about the limitations of PPPs; ensure the PPP is democratically accountable and is full monitored and scrutinised.