Thomas Bridge 03 March 2015

Outsourcing causes workers and service users to ‘suffer’, says report

Falling wages and soaring working hours under outsourced public services are impacting on staff and quality of care, a report claims.

Research conducted by the New Economics Foundation on behalf of the Trades Union Congress (TUC) found staff working in privatised services were more likely to receive less pay, be on insecure or temporary contracts and work longer hours than public service employees.

Warnings were raised that such conditions could affect the commitment of staff and impact upon the quality of service provided.

The last Care Quality Commission report into the quality of care delivered by different sectors found services run directly by councils and voluntary organisations in 2010 had the same proportion of good and excellent ratings (91%) while privately run services had a smaller proportion (81%).

Analysis from the TUC suggests median wages for senior care workers in the public sector are £14.19 compared to £7.30 for those in the private sector. It found those working in the private sector were also 4.3% more likely to work over 48 hours per week, while median job tenure was over twice as high in the public sector.

TUC members today called for the public to be given a ‘right to recall’ contracted out services if quality or performance fell.

TUC general secretary Frances O’Grady said: ‘This research clearly exposes the damaging effect of outsourcing on the morale and working conditions of staff.

‘But it is not just the workers who are suffering, it is also service users and family members who are getting a raw deal from the break up and outsourcing of our public services.

‘Who would you rather have treating your sick relative? A low-paid, exhausted private sector worker whose temporary contract makes them unable to see the same person more than once, or a public sector employee who is paid a decent salary and is given a proper contract that allows for a long-term care commitment?’

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Ending the ‘care cliff’

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