Hospital trusts looking to farm out their support staff to subsidiary companies will be met with a wave of opposition and industrial action, UNISON general secretary Christina McAnea will say today (Sunday).
Speaking in the opening session at the Trades Union Congress, she will warn ministers there will be nowhere to hide if they don’t clamp down on NHS trusts trying to parcel off health workers to subsidiary companies, known as SubCos*.
Christina will tell the audience in Brighton that proposals for more outsourcing are a direct contradiction of Labour’s pre-election pledge** to bring privatised public services back in house.
Promising a robust response from unions, Christina will say health trusts had turned to subsidiary companies in the past, looking to save cash by exploiting a VAT tax loophole and cutting staff pay and conditions.
Vowing to fight SubCos wherever their raise their head, she will say that, like zombies, SubCos need to be killed off properly.
UNISON general secretary Christina McAnea will say: “It’s less than 500 days since the general election.
“We all knew there was one hell of a mess to clean up after 14 years of Tory failure. And it wasn’t going to happen overnight.
“In some areas there’s been real progress. The Employment Rights Bill is the best example. A once-in-a-generation game-changer. It represents a massive step forward for workers who have been on the receiving end for too long.
“But we have to speak up when progress is too slow. And we’ve seen far too little on Labour’s commitment to bring about the ‘biggest wave of insourcing in a generation’.
“Given the damage done by decades of outsourcing and privatisation, action is desperately needed.
“Subsidiary companies in the NHS have been tried before. Trusts seeking to save cash by exploiting a VAT loophole and cutting back on staff pay, terms and conditions.
“This was all the rage towards the end of the last decade. Until union campaigning forced NHS England to rethink.
“Unfortunately, it appears that SubCos – like zombies – aren’t that easy to kill off. NHS England is apparently keen to reanimate a seemingly dead policy.
“Staff farmed out to subsidiary companies are almost exclusively low-paid. The vast majority are women. And large numbers of them are Black workers.
“Just like the last time SubCos were on the agenda, we won’t take this lying down. The response from UNISON and other unions has been uncompromising.
“The NHS needs to be rebuilt, not dismantled and parcelled off.
“Ministers cannot hide behind this being an NHS England policy. These developments are happening on their watch. They’re in charge, not NHS England, and they have the power to put an end to this right now.
“If they don’t, then they should be prepared to be met with a wave of opposition and industrial action.
“We will fight SubCos wherever they raise their head. Because zombies need to be killed off properly.”
Notes to editors:
– The annual Trades Union Congress runs from today (Sunday 7 September) to Wednesday (10) in Brighton. The full UNISON motion can be found here.
– Christina McAnea is due to speak at 6.30pm in the debate on public services and the economy.
– * SubCos are companies owned by NHS trusts but set up at arms-length as non-NHS bodies. NHS trusts set up SubCos to allow them to outsource support services and their staff, like those in facilities or administration. NHS England reportedly sees them as a quick fix for trusts to slash VAT costs and make savings to reduce their deficits.
– ** In its New deal for working people, Labour promised to “bring about the biggest wave of insourcing of public services in a generation.” The Labour manifesto said the new deal would be implemented in full.
– UNISON has written to all NHS trusts highlighting the dangers of setting up SubCos and reminding senior managers of campaigns fought and won by unions the last time these companies were being used by desperate health bodies.
– Staff employed by Dorset HealthCare NHS Trust, Dorset County Hospital NHS Trust and University Hospitals Dorset NHS are currently being balloted for industrial action over plans to shift hundreds of the lowest paid health workers to a SubCo. That vote closes on 24 September.
– UNISON is the UK’s largest union, with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy.
Media contacts:
Dan Ashley M: 07508 080349 E: d.ashley@unison.co.uk
Anthony Barnes M: 07834 864794 E: a.barnes@unison.co.uk
The article NHS cannot be rebuilt by slashing pay and conditions of the lowest paid, says UNISON first appeared on the UNISON National site.
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