24 February 2006
If Treasury ministers agree to the proposals later this month, almost one third of National Savings work will be done in India.The union believes that redundancies will follow leading to increasedinsecurity amongst staff over jobs, terms and conditions and pensions provision.
The proposal follows a similar move in 2004 where despite union opposition the government allowed Siemens, who run the National Savings contract, to move 240 jobs offshore. Significantly on that occasion the union's campaign delivered a no job loss assurance, unlike with this set of proposals where the company have so far said they cannot guarantee replacement work for displaced staff.
In 1999 4000 civil servants were transferred to Siemens Business Services (SBS) when it won the National Savings PPP. At the time PCS members, who campaigned against the transfer, were assured by ministers that there would be no break up of the account and that staff would not pay the price of privatisation. They now face both threats. The proposal requires the consent of Treasury minister Ivan Lewis MP with whom the union will be meeting in the coming weeks.
Danny Williamson, PCS Siemens group president, said: "There is no benefit for the UK Government, the taxpayer or National Savings customers in this proposal which is purely aimed at saving the private contractor millions of pounds over the life of the contract.
The UK Government should set an example to UK industry and reject the offshoring Government work. It should not sanction job losses in the UK nor the exploitation of workers abroad especially where it is only for the purpose of increasing the return for the private contractor."
PCS general secretary, Mark Serwotka, added: "This proposal presents a dangerous precedent for government services. We know from a leaked document that government departments such as the Department for Work Pensions are putting procedures in place to deal with requests by private companies to deliver government contracts overseas.
The fear is that we could be facing further offshoring in the future if the government press ahead with privatising key services such as job broking."