Branch guide to co-operatives and mutuals

Transcription

1 Supporting members Defending services Branch guide to co-operatives and mutuals

2 Branch guide to co-operatives and mutuals Photo top right: Marcus Rose. 2

3 Introduction The coalition government wants to see public services spun out into staff-led mutuals and co-ops as part of their vision for open public services. It is clear that the government wants to drastically reduce the state and see as many services as possible provided by external providers. The desire for mutuals and co-ops to be part of this landscape is outlined in their 2011 White Paper and provisions made in the Localism Act, including the Community Right to Challenge. UNISON is very concerned at these moves which stem from an ideologically driven desire to shrink the state and cut public spending, rather than a genuine desire to maintain strong public services, empower workers and improve service quality. There is a long and positive history of small organisations like mutuals and co-ops operating to complement public services. But this has predominantly been in niche areas through grant funding. Many have struggled to survive in the long-term once financial and technical support has been withdrawn. Much of the coalition s current agenda is about outsourcing mainstream public services. The coalition have stated that where proposals for mutuals offer reduced costs or improved services they will be considered UNISON s concern is that most will look to reduce costs at the expense of the workforce and soften up public services for privatisation. This guidance has been designed for branches and aims to break through the misinformation to ensure politicians, the public, and crucially, our activists and members, understand the full implications of these models. While mutual and co-operative models are being pushed to some degree throughout the United Kingdom, some of the provisions referred to in this guidance apply to England only, in particular the Community Right to Challenge. This guidance includes: Information about spinning out, the Community Right to Challenge and procurement Definitions of mutual and co-operative models Questions for branches to use to challenge proposals Links to other sources of information 3

4 Branch guide to co-operatives and mutuals Spinning out the facts The Community Right to Challenge 1 includes a provision to enable two or more employees to request the right to take over the running of a service. This so-called expression of interest must then be considered by the local authority. Grounds for rejecting an expression of interest are set out in the Localism Act. If the local authority chooses to accept the request, then a procurement process is triggered. In a 2011 speech announcing support for staff mutuals and their right to provide public services, the Cabinet Office Minister Francis Maude sweepingly stated that where public procurement processes allow and savings are properly agreed, staff forming a mutual will be awarded a contract to continue providing services rather than going through the full tender process 2. There is no automatic right for the employees who submitted the expression of interest to simply take over the running of a service under European (EU) procurement law the contract must go out to competition if it is above a certain value 3. Branches should be aware that the Cabinet Office advises that there may be a limited number of exemptions, which the Mutuals Information Service has outlined in a guidance paper 4. Of these, we predict that councils are most likely to argue that there is no market for the service in question i.e. unlikely to attract a suitable level of competition and therefore exempt from procurement. While in some circumstances this exemption could initially be used, it could disappear later if a market for that service starts to develop. To date, most spin outs have been the result of a top-down, management-led approach. However, it is important for UNISON branches to note that even where a local authority actively encourages staff to spin out services (and no expression of interest under the right to challenge is needed), there will still need to be an open procurement process at the point at which the contract is let. The Cabinet Office is lobbying for an amendment to EU rules to temporarily exempt employee-led co-operatives and mutuals from the procurement process. This would enable them to establish themselves before being subject to full and open competition. However this has not yet happened and is unlikely to happen in the near future. Branches should be aware of these facts as many local authorities will seek to sell a co-op or mutual to staff on the grounds that it will receive a contract for a specified period of time. Generally, the only instance in which a council can award a contract as of right is to a company which is wholly owned and controlled by the local authority called a Teckal company. 1 Applicable in England only - for more detail see the Branch guide to the Community Right to Challenge (UNISON, 2012) See Cabinet Office Procurement Policy Note - New Threshold Levels for 2012 and changes in the use of the Accelerated Restricted Procedure 4 Procuring services from public service mutuals (Cabinet Office, 2012) documents/111206%20procurement%20paper%20update.pdf 4

5 By their very nature, co-ops and mutuals are very unlikely to be classed as Teckal companies. This is because Teckal requires the parent authority (the council) to exercise similar controls as it would when running an in-house service. Co-ops and mutuals, founded on a basis of employee-ownership, are unlikely to satisfy this test. Furthermore, local authorities need to be very careful that they do not breach EU regulations on State Aid. The total value of this support must not exceed 200,000 - approximately 157,000. This will depend on how they provide the support, and will apply if they decide to support staff in establishing a mutual or co-op. Anything above this could be considered to constitute state aid and could be challenged by other bidders looking to secure the contract. State Aid rules are there to ensure free and fair competition. If the council eventually awards the contract to a co-op or mutual, other bidders could make the claim that the rules have been breached and leave the local authority open to legal action. This is because the co-op will be a separate legal entity by then, but one in which the council has invested financially in establishing. 5

6 Branch guide to co-operatives and mutuals What s in a name? There is a lot of confusion about the actual definition of a co-operative or a mutual, with terms often being applied incorrectly and inter-changeably. Some local authorities may try to pass off straightforward outsourcing as a co-op or mutual in order to make it more palatable to service users and staff. To complicate matters, in the UK there is no legal definition of either a co-op or a mutual. Broadly speaking, co-operatives and mutuals are both enterprises run by - and for - the benefit of their members. Members can be workers, employees, service users, other organisations, or the community. Both co-operatives and mutuals can take different legal forms 5 : Private limited company (by shares or by guarantee) Community interest company Industrial and provident society (as either a co-operative society or community benefit society) Limited liability partnership Charitable incorporated organisation. What is a mutual? Co-operatives UK state that mutuals are organisations which are majority owned and controlled by their members on a fair and equitable basis 6.The Cabinet Office definition of a public service mutual is one which has: Left the public sector (also known as spinning out ) Continues to deliver public services And in which employee control plays a significant role in their operation 7. What is a co-operative? Co-operatives must sign up to a set of values and principles outlined by the International Co-operative Alliance (ICA). They state that a co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise. Co-operatives are based on the values of self-help, selfresponsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness social responsibility and caring for others. The seven principles which help co-operatives put their values into action are: 1. Voluntary and Open Membership 2. Democratic Member Control (one member, one vote) 3. Member Economic Participation 4. Autonomy and Independence 5. Education, Training and Information 6. Co-operation among Co-operatives 7. Concern for Community These definitions show clearly that the coalition s view of co-ops and mutuals falls far short of accepted definitions and practice. 5 For more information see Mutual Benefit? Should mutuals, co-operatives and social enterprises deliver public services? (UNISON, 2011) 6 Practical tools for defining co-operative and mutual enterprise (Co-operatives UK, 2012) co-operative_id.pdf 7 Public Service Mutuals: the next steps (Cabinet Office Mutuals Taskforce, 2012) 6

7 Challenging proposals Many people, our members, the public and local authorities, are still unclear about what mutuals and co-ops in the public sector will look like, how they are formed and what the long-term effects of setting one up are. The terms are often used loosely so the exact implications will vary, depending on which model and legal structure is proposed. However, the bottom line is that setting up a new co-op or mutual means outsourcing the service - with all the issues and problems that are evident in outsourcing to date. The Cabinet Office recommends that local authorities which are considering a staff spin out should undertake early and sustained engagement 8 with staff and the trade unions. If the proposal for a co-op or mutual has come from two or more staff through an expression of interest under the Community Right to Challenge, then there is a requirement on the local authority to engage with staff affected by the proposal. However, the statutory guidance is clear that a ballot is not required, and that any such consultation should be proportionate to the extent of the outsourcing. There are ten key areas branches should focus on when a mutual or co-op is proposed: 1. Why a mutual or co-op? 2. Procurement issues 3. What are the equality implications? 4. Is it sustainable? 5. What if it goes wrong? 6. Do the finances work out? 7. Will services still be accountable to the public? 8. Impact on service delivery 9. Impact on the workforce 10. Impact on UNISON At the earliest opportunity, branches should try and get the employer to agree to a ballot of all affected staff on the issue, when the final proposals are available. The council should include sufficient time for staff and the unions to examine the proposals, discuss them and have questions answered. 8 Cabinet Office Mutuals Taskforce,

8 Branch guide to co-operatives and mutuals 1. Why a mutual or a co-op? Whenever a new service delivery model is proposed, UNISON branches need to ask their employers the simple question: Why? Traditionally councils have sought to outsource services in order to make cost savings and efficiencies. Many people feel that mutuals and co-ops are simply a more acceptable face of outsourcing. Claims about increased employee control and empowerment will be made alongside the case for savings and efficiencies. It is important that branches are able to cut through some of the rhetoric about co-ops and mutuals to see what the facts are. Is setting up a whole new structure, with all the associated costs, the best use of public funds? How will a co-op or mutual be able to deliver a service better than the local authority? If the council wants to empower staff, why not think about working more effectively and co-operatively in-house and devolving more responsibility to staff? There are a number of actions which branches can take, beginning with asking to see the options appraisal that should have been completed. This should detail a number of different options that have been considered for the service and give some idea as to why the mutual / co-op model has been chosen over others. Crucially, the in-house model should have formed part of these considerations. Keeping a service in-house does not mean keeping the status quo. UNISON branches should be pushing for an in-house service improvement plan to be considered as a viable option. If the process is further advanced, ensure you get hold of a copy of the business case. This should contain more detail on the council s rationale for the model and structure proposed. Here the detail of the proposals will be very important: What model is proposed and which legal structure? Who will own the company and what will the governance structure look like? Will all staff be able to have a say in the running of the company? How? Will there be any external partners involved? Will they be part of the board? Can the co-op or mutual be taken over or turned into another type of organisation at a later date? Will it have an asset lock? The whole ethos behind genuine co-ops and mutuals is democratic employee ownership and control members have to want to be part of a new enterprise. To this end branches should talk to the employer at the earliest opportunity about holding a ballot of all affected staff. Key considerations will include: Advance agreement in conjunction with the branch about the wording of the question being put to staff in the ballot 8

9 A possible two stage process one ballot to determine if there is staff interest in examining the option to spin out (without obligation) and a second before the final decision is made Ensuring that a workplace ballot takes place in secret to enable staff to express their views freely That the ballot be organised and run by an independent administrator, such as the Council s Returning Officer or Electoral Reform Services What level of staff support constitutes agreement with the proposal One final consideration for branches will be to press the council on what their intention for the service is should staff not be supportive of the proposal. Here the danger of privatisation will loom large, but this also presents an opportunity to talk to the employer about keeping the service in-house, drawing up a staff-led improvement plan and enabling staff to work more co-operatively. 2. Procurement issues There are many unanswered questions when it comes to the position of co-ops and mutuals in the open market. Many local authorities thinking of setting up co-ops and mutuals may not be aware that they cannot just award a contract as of right. Councils can only award a contract to a company in this way if it is one which is owned and controlled by the local authority - or authorities. This is called a Teckal company. As previously discussed, the government believes that there are other exemptions to EU procurement law which local authorities can invoke. Your employer may use the argument that there is no market for the services in question and hence no need to go out to open competition when the mutual or co-op is first established. In the case of the no market argument, we strongly advise branches to conduct their own assessment of the market for that particular service as soon as possible both in terms of local and national providers. Conducting such an assessment will help in the short term in assessing whether the council s decision not to tender the contract is likely to be challenged by a private company, and opened up to full procurement. It will also assist in the longer term when the contract is eventually let in the open market to have an assessment of how vulnerable the service is to takeover by a private provider. 9

10 Branch guide to co-operatives and mutuals Any service will not be immune to competition forever under this regime, it is just a question of when, and it is very important to ensure members are aware of this. In the majority of cases, the contract will have to be advertised and go out to open procurement to comply with EU rules. How long will the contract be for? Realistically if a new mutual or co-op is going to stand any chance of success it needs time to establish itself if it wins the contract in the first place. If the contract is only for a couple of years, its chances will be lessened. How solid is the contract? Contracts typically include break clauses and mechanisms to enable councils to pull out of deals that are no longer working or favourable to them. The contract with a co-op or mutual will be drawn up in the same way and there are no guarantees. A recent case in Kent showed that even with a contract in place, a local authority can choose to withdraw funding at any time. Former council children s services employees were encouraged to leave their jobs and join Project Salus on the back of Kent s decision to provide the company with a three-year grant. But in December 2011 the council announced that it was terminating the grant after just six months 9. bids and have legal and financial expertise at their disposal. How will a small co-op or mutual compete? Procurement is a complex and costly process, and once the contract is awarded, the cost of monitoring it continues. These are additional costs. Branches should highlight that these will have an impact on the council s planned savings. In the longer term, what happens when the contract expires? EU procurement rules will mean that it has to be advertised again. It is likely that large private companies will bid for the contract. These companies are experienced at submitting 9 Local Government Lawyer Social enterprise run by ex-council staff launches JR over axing of grant after just six months

11 3. What are the equality implications? Any local authority considering setting up a co-op or mutual needs to ensure they have considered all the possible equality implications on both users and staff of outsourcing the service. Has there been an equality impact assessment of the proposal? If so branches should ensure they get a copy and scrutinise it fully. If the authority commits to going ahead with the proposal, there are other equalities considerations. A co-op or mutual will not be covered by the public sector equality duty as it is not a public body, but only the general equality duty. Will equality considerations be included as part of the contract that is advertised? How will the diverse needs of the local community be met? 4. Will it be sustainable? There is still very little evidence of successful co-ops and mutuals within the public sector. However, research suggests that making them sustainable in the long-term requires a combination of factors: 1. A long term contract 2. Buy in from all stakeholders including staff 3. Ongoing support, advocacy and expert advice 10. Without these in place, a mutual or co-op is likely to struggle from the outset. Branches should make these points clear to members affected and raise these issues with the local authority. How long will the initial contract be awarded for? Will they commit to holding a ballot of affected staff and users before going ahead with any proposals? Where will the mutual or co-op s support services come from? (Payroll, finance, legal and HR) Is the cost of this accounted for within the financial projections? Will the council be in danger of breaking EU State Aid rules if it gives this support? 10 Proof of delivery? (APSE, 2011) 11

12 Branch guide to co-operatives and mutuals 5. What if it goes wrong? Careful thought needs to be given to what happens if it goes wrong - whether a local authority is actively pursuing staff spin-offs or reacting to an expression of interest from staff under the Community Right to Challenge. One of UNISON s concerns about setting up co-ops and mutuals is that initially they are inexperienced players in a much larger market. Local authorities need to be made to think about all eventualities when planning to spin out services. What happens to service users if the co-op or mutual goes bankrupt? This is a particular concern for services which deal with vulnerable members of the community, such as children or older people. If a service fails, will the council commit to taking it back in-house? If so, this commitment should be clearly stated within the spin off s governance documents. What will be the financial and political cost to the local authority of stepping into pick up the service if it fails? 6. What financial assumptions are being made? The current round of proposals to establish co-ops and mutuals are being made in response to the massive cuts to local government funding imposed by the Tory-led Coalition government. Getting hold of the business case will help branches to understand what financial assumptions are underpinning the proposals. The largest area of expenditure in any public service is the staff well trained, experienced and knowledgeable employees deliver quality public services and are the greatest asset a service has. Would the co-op or mutual seek to cut spending on staff either through redundancies or cuts to pay, conditions and working hours? Will future staff be brought in on poorer terms and conditions creating a two-tier workforce? The cuts to local government funding mean that many local authorities are seeking to increase revenue generation activities. Is the business plan making the assumption that the spin-off will be revenue generating? Is this a feasible claim given the current financial climate? One of the biggest stumbling blocks to the success of mutuals and co-ops, whether in the public or private sector, is a lack of access to capital. 12

13 How will the co-op or mutual access capital to enable it to purchase equipment or pay for building repairs? 7. How will mutuals and co-ops be accountable to local people? Local councillors are responsible for local services and local people can raise any concerns about services with them. Councillors are accountable at the ballot box in elections; with many a local politician being voted out if local people feel they have not delivered for the community. Outsourcing has removed this direct accountability and elected members are relegated to the position of distant scrutineers when a service is privatised. If co-ops and mutuals are just another form of outsourcing, how will this be any different? Furthermore, to be a true co-operative the enterprise must comply with the principle of autonomy and independence therefore it must be free from local authority control. A co-op or mutual may or may not have good community links and support but it will not be accountable to the electorate in the way that councillors with responsibility for council services are. Will accountability be compromised when a service is outsourced to a staff spin off? What steps will the council take to address this? 13

14 Branch guide to co-operatives and mutuals 8. What is the impact on service delivery? Most councils which set up a new company or outsource a service will do so with claims of improved service delivery. As the largest public sector trade union it is UNISON s responsibility to scrutinise these claims and make sure they stack up. The starting point for this will be the options appraisal and the business case. What do these documents say about the ability of a co-op or mutual to deliver services better than the in-house model? Talk to members delivering the service about their views on these claims are they real improvements or a means of justifying a co-op or mutual? In-house services have a whole range of central council support services at their disposal, from legal advice to HR and payroll. What planning has been done to ensure the co-op or mutual can procure these services - either from the council or externally? For example, what might be the impact on service delivery if employees do not receive their salary on time? Branches should ensure local authorities are aware of rules and restrictions around state aid. 9. What is the impact on the workforce? The rationale for establishing co-ops and mutuals to run public services is that they put staff, as the experts, in the driving seat. UNISON has always advocated greater staff involvement in the design of services as well as the delivery. However there is a huge difference between this and handing a service over to staff wholesale giving them no option but to run their service as a co-op or mutual. Firstly there are the practical issues to consider which will be of key importance for staff. Will the workforce be transferred over to the new body by TUPE or seconded? Will there still be access to the LGPS through admitted body status? What commitments is the local authority making to staff in the case of service failure? Will the mutual or co-op be able to afford the pensions bond against LGPS liabilities? What are the implications for equal pay, following Single Status pay and grading reviews? There is advice available to branches on mass secondments of staff, which may be preferable to a TUPE transfer 11. Care needs to be taken to ensure that a set secondment process is followed, or else TUPE may be deemed to apply. 11 Secondments: Bargaining advice for local government branches (UNISON). Section 3 deals specifically with how to undertake a safe secondment 14

15 Branches should ensure that the secondment arrangements are guaranteed to last for the duration of the contract with a right to return to a comparable role in the council s employment once the contract comes to an end. Secondment agreements should ensure that the co-op or mutual is under the appropriate obligation to consult and negotiate with UNISON. Secondees who wish to take up other roles within the local authority for example on promotion should have the right to do so. Branches will also need to negotiate an agreement to cover new starters. They may also be employed by the council and seconded. However if they are directly employed by the co-op or mutual you will need an agreement about pay, terms and conditions which guards against the development of a two-tier workforce. However, alongside these crucially important points are others concerning the structure and culture of a new employee-led organisation: How will the board be set up and who will be eligible to sit on it? Who will be eligible for membership? If the business case is relying on incomegeneration to sustain the business, how will staff be supported to transition into a role that involves this type of work? How will this balance with the demands of people s day jobs? How will they ensure that all staff are able to input and that decision-making won t be dominated by certain individuals or groups? 10. What will the impact on UNISON be? Where services have been outsourced in the past UNISON has worked hard to ensure that members are followed into new organisations and that recognition goes with them. We know that it can be difficult to retain membership and effective organisation. Co-ops and mutuals are new entities and there are many questions for us as a union about how we can continue to support and represent our members. If employees are TUPE transferred, will union recognition go with them? Will there be trade union facilities? How will the union operate in an organisation that is run by staff as a whole, rather than traditional management structures? How will employees maintain a relationship with the local UNISON branch? If, despite our best efforts, services are transferred over to new co-ops and mutuals, branches need to plan ahead to ensure continued UNISON organisation into the future. 15

16 Branch guide to co-operatives and mutuals Case studies The following examples from the public sector highlight some of very real difficulties mutual models face. DA Partnership the mutual that never was 12 When the government announced the demise of the Audit Commission in 2010, staff there decided to set up their own employee-led mutual. The work of the Commission auditing councils and other public bodies was to be outsourced, and the new mutual planned to bid alongside private sector firms for 90m worth of contracts. DA Partnership was launched in September 2011, with accountancy firm Mazars holding a minority stake in the venture, which was majority-owned by staff. However, the mutual won only one out of the ten contracts advertised in the national procurement process, meaning there was insufficient work to sustain the venture. Instead, in March 2012 it was announced that DA Partnership would become a wholly-owned subsidiary of Mazars, bringing to an end the plans for an employee-led venture. The nine remaining contracts were won by Grant Thornton, KPMG and Ernst and Young. Central Surrey Health outmuscled by Virgin 13 Established back in 2006, Central Surrey Health (CSH) is a health social enterprise set up as a not-for-profit limited liability company co-owned by nurses and therapists. When the coalition government came into power in 2010, they were keen to praise the work of the organisation, dubbing it the big society in action. Despite the success of CSH, they failed to secure their first competitivelytendered NHS contract in 2011, losing out to Virgin Healthcare. One of the questions raised at the time was whether CSH had the financial muscle to compete with large players in the market and provide a multimillion pound bond as surety. CSH have since been named as preferred bidder for the re-tendering of the contract they first secured when they spun out in However, the failure of the company to secure an additional contract raises real concerns about the sustainability of small companies in a large and profitable market place. Secure Healthcare a safe bet? 14 Secure Healthcare was set up as a not-forprofit organisation providing NHS care for prisoners at HMP Wandsworth in a 5 million contract. It went into liquidation in 2009 with 1 million worth of debt, and the service had to be brought back into the NHS. Not only were the jobs of 70 employees at risk but also there was a serious threat to the continuity of service provision to the 1,600 prisoners covered by the contract. A subsequent report to Wandsworth Council overview and scrutiny committee in 2010 stated that despite the high profile organisation having received government funding and a reference from the Department of Health Social Enterprise Unit the company could not deliver on what it proposed in its tender, particularly in relation to its finances

17 Useful sources of information UNISON Mutual Benefit: Should mutuals, co-operatives and social enterprise deliver public services? pdf Report on the Government s proposals to increase the provision of public services by mutuals. Mutuals: questions to ask pdf This leaflet briefly outlines some questions members faced with mutual proposals should ask themselves and their employer. Branch guide to the Community Right to Challenge Available on the UNISON website APSE Proof of Delivery? A review of the role of co-operatives and mutuals in local public service provision This research publication examines whether the claims made about the value that co-ops and mutuals can add to public service delivery are matched by the evidence. The Co-operative Council Network A network of Labour Councils seeking to implement co-operative policies and ways of providing services, which give communities power and a real say over the ways they are run. Cabinet Office Mutuals Taskforce mutuals-taskforce The Mutuals Taskforce was established by the Cabinet Office to engage with, challenge and promote the policy development work of Government to support the creation and development of Public Service Mutuals. Mutuals Information Service Advisory website set up by the Cabinet Office for those looking to set up a public sector mutual. Co-operatives UK Co-operatives UK are the national trade body that campaigns for co-operation.their website contains useful news, information and guidance on co-operative models. 17

18 Branch guide to co-operatives and mutuals Co-ops and mutuals checklist This checklist outlines some of the key steps branches should take if a co-op or mutual is proposed, as well as key questions to ask. Throughout the process branches should push for the service to be retained in-house, with a service improvement plan designed and delivered by staff and service users, with an ethos of co-production at its core. Find out where the proposal has come from: The Cabinet Office recommends early and sustained engagement with trade unions how will this happen? Ask to see the options appraisal was an in-house option considered? Ask what the timescales are for the proposal this will enable you to plan ahead, particularly if you are going to launch a campaign on the issue. Is the proposal management-led? Or made by two or more members of staff under the right to challenge? Remember the community right to challenge (England only): If the proposal comes from an expression of interest does the council intend to accept it? Remember that there are a number of grounds on which an expression of interest can be refused. If the proposal comes from staff, the council is required to consult with all staff affected Inform your regional officer of the proposals: There is support available from the Local Government Team in scrutinising documents such as options appraisals and business cases Speak to your regional officer in the first instance Arrange to get reps together as soon as possible: Ask them to speak to members about their views are they sceptical or supportive? Talk to non-members too - use it as a recruitment opportunity Ask to see the business case: What assumptions are being made? Monitor the council s role: What level of support is the council giving the mutual or co-op? If this support is financial and exceeds a certain amount this may constitute State Aid, potentially leaving the council open to challenge 18

19 Look carefully at what is being proposed: Which model is proposed? Is it really a co-op or mutual? Ask why co-operative values and staff empowerment can t happen in-house? Examine the workforce implications: Which staff will be affected? Will there be a TUPE transfer or secondment? What about access to the LGPS? Will there be a staff vote? If so, ascertain the level of staff support required for the proposal to go ahead Ask to see the equality impact assessment of the proposals Think about the procurement process: Ensure that people understand that the service will have to be tendered out and can t just be given to a mutual or co-op under EU procurement law Despite what staff may be told, there are very few cases where a contract can just be handed over to a co-op or mutual Talk to friendly councillors about what they know of the proposals: When will the proposal be formally considered by councillors? Engage with service users: What do users of the service think about the proposals? If there is a public consultation, ensure people know about it Be prepared to engage with the procurement process if the service is eventually tendered out: There is advice and guidance on procurement on the UNISON website Remember that even if contract is advertised, the council can ultimately decide not to award a contract and retain the service in-house Plan ahead for the worst case scenario: If the service is awarded to another body be it a mutual, co-op or private company how will UNISON feature? Branches will need to plan ahead to ensure we follow our members 19

20 Published and printed by UNISON, The UNISON Centre, 130 Euston Road London NW1 2AY. CU/November 2012/21205/3188/UNP