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Paying the Cost By Sanjiv Sachdev Since their inception, changing employment relations have been crucial to the perceived success of the Private Finance Initiative (PFI) and Public Private Partnerships (PPPs). The government claims that savings result from the private sector’s innovative management practices, but are not achieved at the expense of employee terms and conditions. Sanjiv Sachdev argues that there is little evidence to support this assertion, and that where comparative data is available – notably within the Prison Service – a clear picture emerges of private contractors reducing labour costs by cutting pay, extending hours, reducing holidays and downgrading pension provision. This poses a serious challenge for a government that is also committed to tackling low pay, advancing family friendly employment practices, and averting a looming crisis of inadequate pension coverage. "Here is yet another report which adds to the growing body
of evidence that these PPPs make savings by cutting the pay and conditions
of the workforce. It's way beyond time that the Government took notice
of the evidence and delivered on its pledge to end the two-tier workforce
in our public services. It cannot be the Labour way to allow such practices
to continue." Sanjiv Sachdev is Principal Lecturer in Human Resources Management at Kingston Business School. He has researched and published widely on low pay issues as well as on Public Private Partnerships and the Private Finance Initiative. “The real crime in our prisons” – The Guardian, 19 June 2004 “PFI wins on cheap labour” – The Times, 29 June 2004 |
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