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Fair Deal consultation sparks union fears



Outsourced public sector workers may be seeking an employment contract law service in future as the government seeks to change rules governing pension provision.

The government has published a consultation on reforming Fair Deal, the voluntary arrangement which means private companies provide broadly similar pension schemes to workers who have been transferred to a business when public services are outsourced.

It is thought that scrapping this policy could remove one of the key barriers to opening up public service provision to more private firms, particularly small to medium-sized enterprises.

Unions, however, have raised concern that this amounts to an attack on public sector workers.

TUC general-secretary Brendan Barber said: "The Fair Deal on pensions provides an essential safeguard for staff where public services are transferred to private sector providers.

"Removing it would allow private contractors to boost profit margins by slashing staff pensions."

Meanwhile, Unite assistant general-secretary Gail Cartmail accused the government of "lining up another attack" on pension provision.

Posted by Gaby HamertonADNFCR-1678-ID-800444010-ADNFCR
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