'Better deal' for local government staff

Thousands of local government workers are set to get new rights under a deal reached between unions and government.

It will stop companies making a profit from cutting pay, terms and conditions of staff

Joint union statement

After secret talks involving ministers and union leaders, an agreement has been reached to end so-called two-tier working conditions under which workers employed by private or voluntary sector contractors are treated differently to those employed directly.

The move will improve the rights of many workers, as they should be treated "no less favourably" than staff employed directly.

The deal will not be backdated for existing workers, but new recruits will have their conditions protected.

Eventually all transferred workers will benefit as the new deal will be a condition when contractor deals are renegotiated with the government.

Pensions

The government said it wanted to "recognise the need for flexibility but this must not result in an outcome overall that is less favourable".

However, a blanket right to the generous local government pension scheme will not be within the new code.

New joiners will be offered "reasonable pension provision", which may be either membership of the Local Government Pensions Scheme, a good quality employer pension scheme or membership of a stakeholder pension scheme with an employer contribution.

Nick Raynsford, local government minister, said: "It will retain the flexibility necessary to allow contractors to design an appropriate package of terms and conditions in order to deliver the best possible service."

A new relationship?

Last autumn, the Prime Minister said he wanted to end the two-tier workforce.

The unions promised a row with the government over the issue.

The three biggest public sector unions welcomed Thursday's news.

One leader said it could be the beginning of a new relationship with government.

In a statement, the GMB, TGWU and Unison unions said they had achieved "a major advance for thousands of today's, and tomorrow's, public service workers".

"It will stop companies making a profit from cutting pay, terms and conditions of staff."