Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Rejected
Government lacks policy requiring trade union recognition in contracts, but performance remains a concern
Recommendation
We queried with the Cabinet Office if it was normal practice to let a contract to an organisation that does not recognise trade unions.42 Although unable to give us a definitive answer at the time, the Cabinet Office subsequently wrote to the Committee to confirm that there is no government policy requiring trade union recognition in contracts.43 The Cabinet Office did say, however, that if non-recognition had a direct impact on performance, then it would be a concern from a value for money perspective.44 38 Qq 20-21 39 Qq 25-26 40 Letter from PCS union, 29 July 2025 41 PCS press release, MyCSP strike to be extended, 1 August 2025 42 Q 27 43 Letter from Cabinet Office, 28 July 2025 44 Q 29 12 Capita’s readiness for the transition
Government Response Summary
The government disagrees with the recommendation to ensure suppliers give adequate recognition to the voice of employees, stating that while the Social Value Model ensures fair working conditions and the right to join a trade union, it's prohibited from forcing suppliers to recognize trade unions.
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.