NHS staff are fighting back against outsourcing to ‘arms length’ companies

Up to 1,650 local hospital staff across two different NHS trusts face transfer to subsidiary companies, where unions worry their employment rights could be eroded away.

NHS staff are considering strike action over outsourcing at several UK hospitals. 

In Gloucestershire and Wigan up to 1,650 hospital staff face transfer to separate subsidiary companies, set up by the local NHS trusts for non-clinical functions such as estates and facilities, capital investment and sterilisation services.

Unions are opposing the plans because they are concerned the move to the new companies, proposed to reduce tax, could “erode” workers’ rights such as sick pay, pensions and wages.

In Wigan, Unison is holding a consultative ballot over Wrightington, Wigan and Leigh (WWL) NHS Foundation Trust’s decision to switch 900 employees to new subsidiary company WWL Solutions.

The trusts have both insisted that current staff would retain their existing conditions including NHS pensions, but new employees will be brought in on different terms.

Speaking to local media Unite, which has 100,000 members in the health service, called on staff in Gloucestershire to petition the trusts to scrap the plans.

Colenzo Jarrett-Thorpe, Unite’s national officer for health, said:

“We believe the creation of these wholly owned subsidiary companies within NHS trusts throughout England could open a Pandora’s box of the Carillion type collapses across the health services, resulting in poorer patient care and a bad deal for patients and staff.”

The union has written to Health Secretary Jeremy Hunt asking that he close the tax loopholes which enable and incentivise the creation of these companies.

The hospitals trust said it is “scaremongering” to compare its plans to privatisation.

In Wigan a spokesman for the trust told reporters:

“Numerous similar companies have been established within the NHS and have been proved to be both efficient and effective.

“There is no truth in rumours regarding degradation of terms and conditions or the introduction of zero-hours contracts for current staff, who are covered under TUPE regulations.”

In Gloucestershire the trust said it had given written assurances to staff that their existing terms and conditions including pay and pension rights will be protected.

But it admitted to developing separate terms and conditions for new recruits “that would allow us to recruit and attract a different type of skill set which is important for the long-term sustainability.”

The Royal College of Nursing has said it supports union action, echoing concerns about a lack of transparency from the two trusts, little clarity over the motivation behind setting up the new companies, and the principle of taking staff out of agenda for change contracts and NHS terms and conditions.

Charlotte England is a freelance journalist and writer at Left Foot Forward. Follow her on Twitter.

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