Click the graphic to download report
Co-operativesUK and the TUC have just published new best practice guidance on the formation (or ‘spinning-out’) of public service mutuals. In doing so they challenge the government’s record on mutuals.
The new report says that in some cases public sector staff have been forced to join new mutuals against their will. In other instances there has been inadequate consultation.
The report also says that the “joint mutual venture” model preferred by the government offers inadequate employee ownership or control and cannot be considered a bona fide mutual.
Needless to say, the government has said these claims are “baseless”.
I think Co-operativesUK is to be congratulated on the stance it is taking on public service mutuals. It won’t have done itself any favours in government circles — but it has done the right thing, and I think we need to make sure that Co-ops UK knows this.
Third Sector online covers the story here.
Any guidance for workers faced with the spinning out of their jobs is to be welcomed but there is a very distinct ring of stable doors about this guidance. I have direct experience of being involved in a worker buyout in the 80’s. Go to http://www.footprintassociates.co.uk and click the blog button to see lessons of a worker buy out. This new guidance still sees the TUC sticking to the public services in the public sector position and the guidance does not cover CICS which has been the structure of choice for spin outs.