5.1 The Scottish Executive and STUC are clear about the positive link between high quality services and good employment practices. Quality and good value will not be provided by organisations which do not manage workforce issues well. PSOs should therefore select only those service providers who offer employees a package of terms and conditions which will secure high quality service delivery throughout the life of the contract. These must be sufficient to recruit and motivate high quality employees to work on the contract, and designed to integrate those employees within the workforce transferred from the PSO.
5.2 When considering a reorganisation of services that may involve a PPP project, the PSO should review the options for an existing in-house workforce in relation to future service requirements and procurement options.
5.3 Notwithstanding the commitment within this Protocol to ongoing good employment practices being established and maintained within all PPP contracts, it is also recognised that the levels of individual pay and conditions of service within a contract are not the only determinant of total labour costs. It is expected therefore that where scope exists to improve productivity and secure service improvements through more effective, high quality management of a workforce, this will continue to be a key feature of evaluation in the competitive processes leading to the award of PPP contracts.
5.4 If it appears that a scheme may involve a transfer of undertaking as determined by TUPE regulations, and employees may be required to transfer to another employer, then the PSO should ensure that there is a level playing field and that the in-house team is provided with appropriate support to prepare an in-house bid.