1. Strategic Service Partnerships and UNISON Strategy Colin Meech National Officer

2. Background Public sector workers have faced extensive privatisation programmes in the UK. Medium trends have been been toward large scale capital programmes such as Private Finance Initiatives and Public Private Partnerships. Most recent developments include Strategic Service-Delivery Partnerships

3. What are strategic partnerships? A Strategic Service-Delivery Partnership (SSP) is a long- term multi-service, multi-million pound contract between a local authority, or other pubic body, and a private contractor. Usually based on ICT and/or support services including professional and management services. They may include education, property and asset management and other services. It will usually affect a large number of staff who will either be transferred to a private contractor or seconded to a joint venture company (JVC).

4. Key Issues in SSP’s  Usually include a regional business centre the successful bidder will use this to win other administrative or customer service contracts for other clients in both the public and private sector.  Long term – usually 10/20 years with an optional five year extension. Open ended – meaning that there is usually scope to add further services should the partnership prove to be ‘successful’.  Governed by a partnership board - with representation from the Local Authority and Private partner.

5. UNISON Strategy Response Continue to argue for public investment and oppose privatisation on key principles of service delivery improvement. Pursuade government to introduce legislation to protect workers interests. Seek recognition and bargaining arrangements with key companies in the public sector Consider and develop ownership strategies with the TUC and other national and international bodies

6. Legal Strategy Government code on the two-tier workforce. Allows trade unions to bargain pay and conditions for new employees. Companies must offer pay and conditions no less favourable than transferring workers. Companies are vulnerable to UK’s Equal Pay Legislation

7. Organising Strategy Selection of key companies Commitment to grow the union and company Development of recognition and bargaining agenda Setting market trends for others to follow Mapping of membership and representatives Contact groups for the selected companies and their subsidiaries are being established

8. Objectives  Increase membership  Develop organisation and capacity  Negotiate principals of Best Value code of conduct or any future statutory regulation of public sector procurement or Fair Wages resolution  Develop a bargaining agenda  Develop a communications strategy Develop Corporate Governance activity in conjunction with the TUC and ICFTU

9. Organisational Structure Strategic Joint Board (SPB) Bi-annual initially. Coverage: Relationship & strategic issues. National Joint Board (NPB) Quarterly. Clearing house for key items raised from Local forum. Forum for consultation on HR policy; change programmes etc. Local Government Code implementation Local Forum Local site issues, report against contractual targets; business site update NJB update – implementation/progress report on any NJB initiatives; report on best practice models on site and whether roll up to NJB. Local change management programmes. Local Government Code implementation

10. Working with employers Capita UNISON As Employees: Collective Bargaining Government As Citizens: Employment Law LGPS As Minority “owner” Shareholder activism TUC/ICFTU ABI/Charities Institutions Partner other “owners” Board control

11. Capita shareholders are our members Beneficial owner %Holding Shares Essex Pension Fund 0.20 1,339,600 West Sussex 0.14 965,000 Wolverhampton 0.14 930,169 South Yorkshire 0.10 668,000 Dyfed 0.11 713,933 West Yorkshire 0.11 713,826 Edinburgh 0.12 791,372 London Authority 0.05 343,902

12. Capita shareholders and potential allies Beneficial % Holding No. Shares British coal mineworkers fund 0.765,066,019 British coal staff pension fund 0.744,924,804 Post office pension fund 0.402,656,447 British telecom staff pension fund 0.241,590,014 Universities superannuation scheme 0.221,485,012 British steel corporation fund 0.181,196,660 Railways pension fund 0.14 919,900 Co-operative insurance pension 0.634,180,358 Church commissioners for england 0.563,750,000 Church of england 0.151,012,755 Helsinki local government pensions 0.583,892,360 State of connecticut fund 0.13 870,696 Us pension funds co1.167,773,575

13. Other Issues to Consider Will governments reduce private capital in public services? Do public sector unions continue to organise in the ‘Private Sector’? In order to have the maximum bargaining power with the private sector, can we exert our influence at all points of contact within its chain of command. Should we recognise that our members are owners of the companies that run public services