Responding to the collapse of Carillion, Mark Turner, UNISON Cymru Wales lead official on private contractors said,
“The demise of Carillion (and the collapse of Southern Cross before that), shows claims made about outsourcing – that the private sector is more efficient, effective and there is a transfer of risk – are a complete myth. We predict other private companies will fail.
“Outsourcing is a short-term economic fix and cannot benefit people in the long term. The new private company has a free hand on profits, money that would otherwise have been reinvested in the community for the public good.
“Welsh public services are under intolerable pressure after years of savage UK Conservative Government austerity cuts but outsourcing is not the answer. Inevitably, any new company will make savings by sacking workers or not replacing staff who leave and squeeze wages and employment conditions. Typically, it is likely to make wider use of exploitative zero hours contracts. Our leisure centres, libraries, adult care and other services serve the community. Having far fewer staff affects quality of service, means public access is more restricted and entry charges increase.
“Local people want a say in how their services operate. That democratic accountability is gone forever if everything is outsourced.”
Contact
Alastair Gittins, UNISON press officer 07816 53 83 97