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STUC/Scottish Executive

PPP Employment Protocol


UNISON Scotland welcomes the protocol as a major step forward in preventing future two tier workforces in PPP schemes. However, our campaign against PFI will continue, as PPP remains a costly, unaccountable and inflexible funding mechanism for Scotland's public services.

The key elements of the Protocol are:

  • The Protocol covers all Public Service Organisations (PSOs) in Scotland who enter into a PPP contract.
  • PPP is only one of several procurement options for public bodies. It is not the preferred option.
  • Compliance will be a contractual requirement in PPP contracts.
  • Emphasises the link between high quality services and good employment practices.
  • PPP contracts will not be awarded only on the basis of lowest price. The best option will involve other factors including quality and good employment practices and bids will be evaluated on these grounds.
  • Consultation with trades unions will start at the earliest stage and continue with full disclosure of information throughout the process. Openness should be the default approach.
  • It is not a requirement of PPP that public sector employees transfer. Where the contract includes services currently carried out by public service employees a range of options can be considered as part of the consultation with the trade unions including bids from DSO/DLOs.
  • If staff transfer, TUPE (or the principles of TUPE) will apply except in certain exceptional circumstances. Other options including redeployment will be considered for staff who do not wish to transfer.
  • Changes to terms and conditions require agreement between the new employer and the trade unions.
  • New staff recruited to work on a PPP contract will be employed on terms and conditions which are no less favourable overall to those of transferred employees. They must also be offered pension arrangements, which are the same, or broadly comparable using admitted body status where possible. This ends the two tier workforce for future PPP contracts.
  • There will be monitoring and review of PPP schemes and the protocol.

November 2002

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