research-report-96-coming-clean-contractual-and-procurement-practices.doc

Table 161 contract stability length renewal impact of

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Table 16.1. Contract stability Length Renewal Impact of tender on employment conditions AirportE 5 years in 2012 After 5 years the contract is expected to roll on with CleanA1 as long as there are no issues and if costs can be renegotiated New zonal arrangements outcome of tender CollegeS 3 years, first contract in 2008 Renewed once already – coming up for second renewal Sigma 6 system response to pressure to cut costs- new system of team working, led to turnover among TUPE transferred staff HotelW 3 years Renewed 3 times, now in 10 th year Limited scope in tender to improve wage level; fees based on room occupancy used as reason for zero hours HospitalE 35 years Respecified in 2011-12 – internal tender for further 10 years Change in specification led to changes in shifts and redeployment of staff CouncilL 2012 4years Not known Took out 30% of hours, led to restructuring and mobile units BankL 2010 3 years with one year extension Renewal for five years under consideration Change from night work to daytime and short evening shifts In all six cases, TUPE transfer provided a core source of recruitment for the cleaning contractor following the winning of the outsourcing contract. This provided the contractor with automatic company access to a local workforce with the required experience and knowledge of the client premises, removing the need to recruit and train a new set of workers for the acquired activities. As one cleaning company manager told us, ‘[TUPE transfer] was really good because most of the staff are familiar with the buildings so we didn’t have to recruit’ (CleanE, Contract manager). deterioration in conditions (Hartzen et al., 2008). 115
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COMING CLEAN: CONTRACTUAL AND PROCUREMENT PRACTICES In the case of the airport, the bank, the council and the hospital, many of the TUPE staff are still in employment, while for the hotel and college almost no-one remains from among those TUPE transferred. This situation is not that surprising in the hotel given the length of time since the transfer (ten years), but for CollegeS the new working arrangements following outsourcing appear to have had a more destabilising impact on staff than elsewhere. The turnover of TUPE staff has been low in the bank and the council, probably due to the payment of the London living wage. For the airport, the regular hours appear to have secured a stable workforce, although most of those due to be TUPE transferred from the airport’s direct staff chose early retirement, and only a small number of ex-airport staff remain on the night shift. Labour turnover appears to be low in four cases (the hospital also because of the decent pay conditions associated with the Two Tier Code), but high in the zero-hours hotel case and at least initially quite high at the college. Indeed, most of the cases do not fit the notion of an unstable workforce; the workforce tends either to be strongly locally based, often reflecting the local ethnic mix or reliant on women with childcare responsibilities seeking part-time work. Much of the recruitment is informal by word
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