Direct and Care (Cordia)
As readers know (see posts dated 2 and 11 February 2009), Glasgow City Council is planning to transfer 9,000 employees from Direct and Care Services into a new arm’s length company – to be known as Cordia.
The transfer is due to go ahead on 1 April 2009 – but what people may be surprised to learn about are some of the ambitious assumptions that underpin Cordia’s business plan.
First of all, the new company is banking on savings of 2.5% in Years 2 and 3 – which have to be found from council budgets passed on to Cordia from Direct and Care.
So, a cut of 5.0% over three years has already been built into the base budget.
But to make matters worse – much worse, potentially – Cordia’s business plan also assumes that turnover will grow by 6% over 3 years – increasing from £151,691,000 in 2009/10 to £160,124,000 in 2011/2012 (largely from generating new income).
A hugely ambitious growth forecast in the present circumstances – especially when you stop to think that the UK economy is in the worst shape for generations.
So, is the transfer all likely to end in tears – because vital services and people’s jobs are at stake here?
How much proper scrutiny has taken place – of these expert plans and forecasts? Who guards the guards, as the saying goes?
Who knows?. But according to the consultation timetable – employees transferring to Cordia should by now have had answers to all of their questions about what the future holds.
The trade unions are key players in the transfer process – they have the right to be consulted under the TUPE (Transfer of Undertakings Protection of Employment) regulations.
The timetable announced by the council says that by January 2009 there should have been effective communication and consultation with staff – through the trade unions.
But what is really happening on the ground – what meetings have been held – what are the unions doing to protect the interest of Direct and Care employees?
We’d be interested to hear – if you have any news to pass on, contact Action 4 equality Scotland on 0845 300 3 800 or drop Mark Irvine a note at: markirvine@compuserve.com
The transfer is due to go ahead on 1 April 2009 – but what people may be surprised to learn about are some of the ambitious assumptions that underpin Cordia’s business plan.
First of all, the new company is banking on savings of 2.5% in Years 2 and 3 – which have to be found from council budgets passed on to Cordia from Direct and Care.
So, a cut of 5.0% over three years has already been built into the base budget.
But to make matters worse – much worse, potentially – Cordia’s business plan also assumes that turnover will grow by 6% over 3 years – increasing from £151,691,000 in 2009/10 to £160,124,000 in 2011/2012 (largely from generating new income).
A hugely ambitious growth forecast in the present circumstances – especially when you stop to think that the UK economy is in the worst shape for generations.
So, is the transfer all likely to end in tears – because vital services and people’s jobs are at stake here?
How much proper scrutiny has taken place – of these expert plans and forecasts? Who guards the guards, as the saying goes?
Who knows?. But according to the consultation timetable – employees transferring to Cordia should by now have had answers to all of their questions about what the future holds.
The trade unions are key players in the transfer process – they have the right to be consulted under the TUPE (Transfer of Undertakings Protection of Employment) regulations.
The timetable announced by the council says that by January 2009 there should have been effective communication and consultation with staff – through the trade unions.
But what is really happening on the ground – what meetings have been held – what are the unions doing to protect the interest of Direct and Care employees?
We’d be interested to hear – if you have any news to pass on, contact Action 4 equality Scotland on 0845 300 3 800 or drop Mark Irvine a note at: markirvine@compuserve.com
