Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Rejected
MyCSP's refusal to recognise PCS union impacts staff relations, though Capita offers hope
Conclusion
MyCSP told us that it does not recognise the PCS union for collective bargaining or otherwise, because MyCSP is a part-mutual organisation with an elected, formal employee works council who are involved in negotiating terms, conditions and pay.37 It did, however, state that there were ongoing 31 Q 75 32 Q 78 33 Q 75 34 PCS Press Release, 6-week strike announced at MyCSP, 24 June 2025 35 C&AG’s Report, Figure 13 36 Q 1 37 Letter from PCS union, 9 September; Letter from MyCSP, 15 September 11 discussions between itself, Capita, the Cabinet Office and PCS about the issue. It added that union membership and activity had increased substantially in the last six months, which it believed was due to the union seeking to be recognised when the transition to Capita takes place.38 We understand that Capita have agreed to move towards recognition with PCS and have been meeting with them to understand and agree on the precise terms and nature of the recognition. This is a positive development and underlines the importance of employers who supply contracts to government engaging meaningfully with unions including through formal recognition.
Government Response Summary
The government disagrees with the recommendation to ensure suppliers give adequate recognition to the voice of employees through union recognition. They state that the Model Services Contract has a clause for Social Value that successful bidders must comply with under the Social Value Model and that workers must have fair working conditions including the right to join a trade union or other forms of worker representation.
Government Response
Rejected
HM Government
Rejected
4. PAC conclusion: 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. 4. PAC 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. 4.1 The government disagrees with the Committee’s recommendation. 4.2 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. 4.3 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. 4.4 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. 4.5 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. 4.6 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.