Government announces end to two-tier agreement

The coalition government is moving closer to the abolition of the two-tier code that is an important element in the protection of the pay and conditions of public service workers. The code was negotiated with the previous Labour government and was established to ensure that private contractors providing public services would apply the minimum rates that applied in the public sector and that these rates would also apply to any new workers taken on. UNISON fears that abolition of the code will mean wages will be cut as private companies undercut the public sector and each other to win contracts

The May issue of UNISON’s Bargaining Update reports that Sheffield city council in the north west of England has told private contractor Chartwells that it must be all its staff working on the Sheffield school meals contract the same rates as those transferred from the Council in 2001. A Workforce Code of Practice was negotiated by unions, employers and the government in order to prevent the spread of a two-tier workforce in public sector contractors. The city council admits that the Code of Practice should have been applied when the contract was signed three years ago. [Read more at > UNISON

Electricity distribution workers in the Wallonia region have been involved in two weeks' of industrial action involving working to rule, in protest at pay differentials in the industry. Unions say that new pay rates introduced since 2002 mean that many new employees are paid 30%-40% less than other workers who were taken on before 2002. Although the action has been called off and negotiations started, unions haven't ruled out further action. [Read more at > Lesoir (FR)->http://archives.lesoir.be/t-20080310-00F6Z8.html?query=electrabel+greve&andor=and&when=-1&sort=datedesc] [And at > Lesoir (FR