A clash between two European directives could force a revision of government policy on compulsory competitive tende...
A clash between two European directives could force a revision of government policy on compulsory competitive tendering by councils, the Financial Times reports (p10).
The paper says that many councils now advertise contracts on the basis that Transfer of Undertakings (Protection of Employment) regulations, known as Tupe, apply. In effect these require a bidder to maintain the same workforce on the same wages and conditions of service.
The EC believes, however, that this could clash with the procurement directive which forbids councils from forcing bidders to use local labour forces. The Financial Times, referring to an article in today's Local Government Chronicle (see LGCNet section G 'EC directives clash under investigation') says that the EC raised the issue after it saw an advertisement in the EC Official Journal for Croydon borough council's financial services work. The ad stated the councils existing staff must be transferred.