Swansea City Council could face renewed industrial action
over its planned £150m outsourcing deal with Capgemini, according
to officials of the Unison union.
Union representatives said there was a 50/50 chance of further
industrial action after the council said it would transfer 70% of
IT staff to Capgemini under Tupe rules.
Members of the IT department walked out for 10 weeks in protest
over the council's outsourcing process last autumn. There was
further anger earlier this month when the council rejected staff
calls to be seconded, rather than transferred, to Capgemini. It had
earlier rejected a bid by council IT staff to remain
in-house.
Unison regional organiser Jeff Baker said the council had approved
the Capgemini deal and employment transfer "on the nod" without
considering alternatives. He said this was causing resentment among
IT staff as the deal goes ahead.
"I do not think there is a shred of goodwill [among staff]. After
the efforts they have made, people now think, 'what do we owe the
authority?'"
A council spokesman said the IT department's proposals were
considered but the plan to transfer IT staff to the supplier was
preferred because it offered better value and faster return on
investment. In addition, secondment created greater legal
risks.
Alex Blue, director at outsourcing consultancy Orbys, said there
were examples of successful secondment, or co-sourcing, deals.
Although the initial cost could be greater, these arrangements
could offer greater value in terms of knowledge transfer, he
said.
Nigel Roxburgh, director at the National Outsourcing Association,
warned of the risk of failure in projects where staff did not have
a positive view of the deal.
"The worst that can happen is that you end up with a team that is
so dispirited that they fight [the contractor] tooth and nail.
Everything that the supplier puts up may be attacked by the client
account team."
Capgemini said it could not comment during negotiations.