ESSU

Somerset County Council and Taunton Deane District Council UNISON branches have commissioned ESSU to prepare a report to draw out the lessons of the £400m contract awarded to IBM and Mouchel Parkman with an unprecedented level of secrecy and ‘commercial confidentiality’. Over 800 staff have been seconded to a Joint Venture Company with a ten-year assured employment. The study will also set out a new agenda for how UNISON will address the transformation and shared services agenda (36 local authorities and public bodies signed a framework agreement).

The report raises major questions about the way the ISiS project has been managed; the absence of any form of public impact assessment of the project; and the adequacy of the proposed retained client structure and governance arrangements. It was commissioned by Somerset County and Taunton Deane DC UNISON branches. The report is critical of the unprecedented degree of secrecy in a public sector project; the continual overuse of commercial confidentiality by the ISiS project team; the lack of public consultation and public debate; and
the lack of rigorous scrutiny of the project, to ensure the protection of public services and allay public concerns.

A detailed study of the longer-term impact of changes in the design, structure and financing of PPP/PFI projects, external economic and political drivers such as growth of the secondary market and government modernisation policies, and the effect of economic, social and employment change. The report also examines PPP/PFI performance, democratic accountability and transparency, the impact on jobs and concludes with an assessment of alternative public sector investment strategies.
80 pages, Dunstan Paper 2/2007, ISSN 1833-3613 Published by the Don Dunstan Foundation, University of Adelaide, Australia.

The report assesses the two unitary options for Bedfordshire – a unitary county and two unitary councils consisting of Bedford and Central Bedfordshire (combining Mid and South Bedfordshire District Councils). It is critical of all of the proposals and finds serious flaws in the Government’s option appraisal process, particularly the absence of an enhanced two-tier developmental option and the narrow assessment criteria. Commissioned by 4 UNISON branches in Bedfordshire and submitted to DCLG.

The European Services Strategy Unit has published a new study ‘Shared Services in Britain’ commissioned by the Australian Institute for Social Research and the Public Service Association. This comprehensive report examines various models and examples of public sector shared services, costs and benefits, employment impacts, governance and transparency and the long-term implications of shared services in the government’s transformation agenda for public services.

Shared Services in Australia: A companion study of shared services in Australia by the Australian Institute for Social Research for the Public Service Association of South Australia. It draws out the lessons learnt by state government shared services programmes.

This ESSU Research Report focuses on appraisal criteria, which are a fundamental part of the options appraisal process. It outlines out the key stages in the appraisal process. As options appraisal becomes a more common tool in public management there is evidence that ‘appraisal bias’ is leading to pre-selected options and construction of particular outcomes by the selective use of evidence and narrow evaluation criteria. Yet a rigorous and investigative approach can be very productive, directing attention to longer-term needs rather than short- term interests. The Options Appraisal Criteria Matrix has twelve sections, which cover the full range of issues that should be taken into account in appraising options.

A strategic approach to developing shared services projects based on a progressive approach, principles for shared services, a public sector shared services strategy, democratic governance and accountability, an evidence-based methodology, quality jobs and comprehensive appraisal criteria and impact assessment (May 2007).

An investigation into the transfer of 10 residential care homes by Essex County Council to Excelcare Holdings PLC for Essex County UNISON. Essex County Council sold it’s ten remaining care homes in 2005 to Excelcare Holdings Plc. Staff were assured that TUPE would protect terms and conditions and would last “indefinitely”. Less than two months later, Excelcare demanded changes in rotas and working hours, followed by radical changes to terms and conditions which included a reduction in pay rates and earnings – many staff would lose between 30% – 40% of their income, a reduction in holidays and loss of sickness benefit (only Statutory Sick Pay) and the loss of night shift rates because Excelcare imposed a 24 hour rate.

A few staff accepted the offer but most did not. In November 2006 it imposed new terms and conditions in five homes by terminating the contracts of all staff who had not accepted the offer. Those who continued working were paid at Excelcare rates and not the Essex County Council pay rates transferred under TUPE. There are now 40 tribunal unfair dismissal cases pending. Excelcare operate the homes using ten separate companies. Excelcare Holdings PLC is registered in England and Wales, which in turn is owned by the ultimate parent company, Excelcare Group Ltd, registered in Jersey, Channel Islands, a tax haven.

In July 2010 one hundred and fifteen ex-Excelcare workers received nearly £1m compensation after being dismissed for not accepting wage cuts of up to 40% and other changes to terms and conditions.

The Department of Health has rejected a KPMG options appraisal in favour of a ESSU appraisal prepared for UNISON Northern, thus saving 2,500 jobs. The Department of Health has confirmed that the planned outsourcing and offshoring of the Prescription Pricing Division of the NHS Business Services Authority will not be progressed. The PPD’s Capacity Improvement Programme will continue. It is a significant victory for the 2,500 staff and UNISON’s Northern Region, in particular the strategy and approach adopted.

The NHSBSA engaged KPMG to prepare an options appraisal which resulted in the outsourcing plan. UNISON engaged the European Services Strategy Unit to prepare an alternative appraisal and assess the implications of the KPMG report. The ESSU worked closely with shop stewards from the northern based PPD centres. The NHSBSA recommendation and both reports were submitted to the Department of Health in late 2006. The Minister for Health, Andy Burnham, stated that the “DH has now completed their review and has decided that the NHSBSA proposal should not be progressed” (April 24 2007).

Assesses Oldham’s planned Strategic Service Delivery Partnership and shows that the project falls well short of the targets and claims made for community cohesion, regeneration and job creation. Oldham Council is proposing a £170m – £260m ten-year Strategic Service Delivery Partnership contract which will transfer property, highways, information and communication technology, customer and exchequer services to a Joint Venture Company (JVC) formed with a group of private contractors. The Council proposes to transfer, rather than second, about 350 council staff to the JVC. A potential second phase of the project would include the transfer of human resources, payroll, financial services and administration to the JVC.