Proper and fair handling of employment issues is essential to achieving Best Value, says the Government in its new guidance Best Value and Procurement: Handling of Workforce Matters in Contracting published by local Government minister Beverley Hughes.

She said: “This new legislation recognises that a well-trained and motivated workforce is critical to delivering quality public services. The guidance sets out how workforce issues, particularly the track record of potential business partners on training issues and employment practice, can be considered in local government contracting.”

The Local Government Association (LGA), the Confederation of British Industry (CBI), the Trades Union Congress (TUC) and Business Services Association (BSA) welcomed the new guidance.
Sir Jeremy Beecham, chair of LGA, commented: "These provisions offer a win-win-win situation: for councils, business and employees. The benefit for local government - and the communities it serves - is that councils can choose to specify quality services with much greater certainty of picking a contractor who can deliver them."

Director-general of CBI, Digby Jones, added: “The CBI is firmly behind this legislation, which stresses that Best Value is all about quality services and not lowest price tendering. Contractors want the opportunity to show that they can deliver high quality services for a fair price - and that includes demonstrating that they can handle the workforce issues well.”

John Monks, general secretary of TUC said: “It is right that local councils should consider workforce matters when they make decisions about procurement. High quality public services depend upon valued and well-motivated employees. The best way to achieve this is to make sure that all staff are treated fairly.”

BSA director-general Norman Rose commented: “This guidance places the emphasis firmly on the crucial importance of the workforce in the delivery of high-quality services. Implemented properly and even-handedly between in-house providers and external contractors, it will enable the client to make realistic decisions. Both cost-effectiveness and commitment to staff must now be built into the equation.

“For the future, those who are not committed to quality cannot expect to get the business. Quality service and quality staff relations have always been the prerequisite for successful companies; from now on, they will be an essential for all those looking to provide outsourced services.”

Jessica Jarlvi

www.detr.gov.uk