Identifies five forms of fragmentation – institutional fragmentation which involves the formation of new institutions or transfer of responsibilities to companies or trusts; organisational and managerial fragmentation by transferring duties to business units; service fragmentation by outsourcing; employer fragmentation as a result off institutional, organisational an service fragmentation leading to multiple employers; workplace fragmentation with separation to different offices and depots. This report examines the effect on services, users, staff and trade unions and the key policy issues (35 pages – 1997).