3.1 The following principles underpin the more detailed guidance provided in this protocol
a) Procurement decisions should reflect quality criteria as well as other value for money factors. The procurement process should promote improvements in efficiency, effectiveness, and delivery of service. Procurement decisions should not be dependent upon dilution of employees' pay and conditions of employment, and sub-paragraphs e), f) and g) below are intended to safeguard that outcome in local negotiations.
b) Where a public sector organisation decides that a PPP should include services which are currently being provided by directly-employed staff, the PPP process is, in principle and in practice, open to bids incorporating the use of such staff, for example DSO/DLO. Such bids would be considered on the same value for money criteria as other bids and overall the PPP would have to meet all the requirements of extant PPP guidance and any Scottish Executive funding conditions.
c) The quality of public services is enhanced by fair employment practices. All potential service providers should be required to demonstrate commitment to fair employment practices and a constructive employee relations ethos, including positive attitudes to trades union recognition and demonstration of best practice in health and safety and equal opportunities.
d) In all potential PPP situations the employees and trades unions affected should be fully informed and consulted in advance of, and throughout, the process.
e) The terms and conditions of transferred employees shall be safeguarded by application of the principles and accepted practice of TUPE. Changes to the terms and conditions of transferred employees should only be achieved by agreement between employer and trades unions.
f) Public sector organisations are expected to ensure no two-tier workforce in PPPs. The terms and conditions for any new appointee to the workforce should therefore be no less favourable overall than for transferred employees.
g) There can be flexibility for negotiation between employers and trades unions to agree local adjustments to working practices and terms and conditions for transferred employees and new appointees to provide an overall package which is better suited to the needs of the service.
h) Transferred employees and new appointees to a PPP workforce should have access to the same or broadly comparable pension arrangements to those currently available to employees. Where possible, this shall be achieved through admitted body status.
i) The Protocol shall be applied to all PPP contracts. Its implementation will be jointly monitored and enforced.