UNISON response to mass privatisation of 800 staff

Our report highlighting significant risks & weaknesses was submitted to Barnet Council Cabinet Resources Committee on Weds 2 March.

Our report was ignored.

See summary of Key Risk below.

1. Delivering Savings – Relentless drive for Efficiency

There is a significant risk that the Council will not achieve the forecasted £100 million savings for following reasons:

• Over reliance on the private sector to deliver savings without a proven record.

• Poor understanding of outsourcing models as reflected in the scoring.

• No evidence based economic assessment & financial projections for each service delivery model.

 

Somerset CC has decided to renegotiate the strategic partnership contract with IBM. Just three years into the ten-year £400m contract, the Council has decided to bring some services and functions back in-house, change the governance of the JVC, and simplify the contract (Cabinet Member Decision, 21 February 2011). The Council considered terminating the contract but this was ruled out because of early termination financial penalties and significant transition costs. Planned savings have already plummeted by a third.

2. Value for Money

There is a significant risk that the council will not achieve value for money for the following reasons:

• No assessment of costs and benefits for each service (business) delivery model.

• No forecast of affordability and no financial projections for each service delivery model.

• No analysis of business risks for each service delivery model.

• Little or no recognition of interdependencies between services resulting in a flawed options appraisal outcome.

• Issuing an OJEU notice in the absence of in depth business case and Gateway review.

 

The recent Catalyst dispute, which resulted in the Council bearing an additional cost of £10.3m illustrates the risks.

3. Challenge

There is a risk of external challenge for the following reasons:

• No evidence that service users have been consulted about the design of the Customer Services Organisation.

To view our Interim report click here

To view Petition signed by staff working in Reves & Bens click here

To view our Final report click here