The FT reports that Cabinet Office Minister is scrapping the two-tier code with ‘immediate effect’. Under the code new recruits on outsourced contracts have been offered terms and conditions no less favourable than staff transferred to a new employer under TUPE. http://www.ft.com/cms/s/0/d44afe86-061e-11e0-976b-00144feabdc0.html#axzz17yv1eQJb
The adoption of the code was seen as a major safeguard against undercutting of pay and conditions by contractors bidding low to win tenders. Predictably the move was welcomed by private companies mouthpiece the CBI and voluntary sector organisation ACEVO – both had lobbied for the change:
‘John Cridland, director-general designate of the CBI, said the move was “good news for taxpayers”. The two-tier code “has long been a barrier for smaller companies and social enterprises wanting to enter the public services market”,’ according to the FT report.
UNISON and the TUC had lobbied the Cabinet Office and major contractors against the code abolition. Dave Prentis condemned the decision as "another attack on mainly low paid women workers. The two tier code is essential to stop companies that are in the process of bidding for public sector contracts, competing on how low they can pay their staff”
http://www.unison.org.uk/asppresspack/pressrelease_view.asp?id=2085
