There's no denying the misery caused by contracting out.
In that particular case, the "service provider" will be punished by "the client" and is to lose the contract. This means that the workers will get yet another TUPE transfer to yet another employer.
Sow how do these arguments play out?
Unite, "The factory isn't as clean since we contracted out. Look at all the cut corners. Look at the misery they are causing for people."
Employer, "Don't worry, we know. We are getting rid of them as soon as the contract expires"
"So why are you getting rid of them?"
"Because they are rubbish".
"So who invited this rubbish service provider here?"
"So why do you think *** will do a better job?"
Most medium to large workplaces have contracted out cleaning. And because of the cut corners, there may be six or more "don't worry we are getting rid of them" moments in a ten year period.
The only way for "service providers" to make additional profit is to attack terms and conditions for workers, or cut corners. Decent cleaning products may be replaced with cheap and nasty ones etc.
When an employer sneezes, the rest soon catch a cold. It's time to contract back in the workers and numerous services that have been contracted out.
Contracting out / outsourcing has failed.
Sooner or later, common sense will prevail.
As far as I can tell, there has only been one study into this. This has found that 70% of senior bosses have had bad experiences of contracting out services such as IT. The figure of 70% would be higher again if considered from a worker perspective.
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- Section 44, ERA 1996 - very important!
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