Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Rejected
Set out approach to ensure suppliers adequately recognise employee voice, including union recognition
Recommendation
In order to ensure a smooth transition from MyCSP to Capita it is important that appropriate consideration is given to the rights of staff members transferring across. MyCSP staff who are members of the PCS union have been on strike over the summer in protest at the lack of PCS involvement in Transfer of Undertakings (Protection of Employment) (TUPE) negotiations. MyCSP told us that the PCS union is not recognised by MyCSP for collective bargaining or otherwise, which it states is due to MyCSP being a part-mutual organisation with an elected, formal employee works council which is involved in negotiating terms, conditions and pay. It did, however, state that there were ongoing discussions between itself, Capita, the Cabinet Office and PCS about this issue. The Cabinet Office acknowledged these discussions too, while claiming that given it was not the actual employer it could merely advise and support where appropriate. It does however list staff retention as a key risk to be managed as part of the transition and identified staff shortages as being partly responsible for performance failures in 2024 and the decline in contact centre response times. recommendation The Cabinet Office should set out in its Treasury Minute response what its approach is to ensure that suppliers that it contracts with are committed to giving adequate recognition to the voice of employees, for example, through union recognition.
Government Response Summary
The government rejects the recommendation, stating it is prohibited by the Employment Act 1982 from forcing suppliers to recognise trade unions. It clarifies that its Social Value Model requires suppliers to ensure workers are informed of their right to join a trade union and have access to independent representation and grievance mechanisms, but does not mandate union recognition.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. The Cabinet Office utilises the Model Services Contract for contracts of significant value (over £20 million). Within the contract there is a clause for Social Value that successful bidders must comply with. The Social Value Model was updated in March 2025, The Social Value Model is a menu of options from which In-scope Organisations select the most appropriate social value outcomes and criteria for their contract. Under the Social Value Model on GOV.UK the first mission covers fair working conditions and makes reference to trade unions in 2 sections under ‘Model award criteria’: • Fair working conditions. • Identifying and managing the risks of modern slavery. These sections ensure that new workers are informed of their right to join a trade union and demonstrating that the contract workforce: has access to an independent democratic trade union or other forms of worker representation and has access to grievance mechanisms to report incidents or suspected incidences of modern slavery relating to the contract through whistleblowing and reporting. In conclusion: • Under the Employment Act 1982 it is prohibited from forcing suppliers to recognise trade unions. • The Model services contract states that suppliers must abide by Employment law. • The Social Value Act states that workers must have fair working conditions including the right to join a trade union or other forms of worker representation but does not mandate that suppliers have to recognise a trade union.