Housing association in row over worker rights

A PUBLIC spat has broken out between a Liverpool housing association and the maintenance contractor it has dumped, with the affected workforce writing to all Liverpool Mutual Homes tenants.

EnterpriseLiverpool – a joint venture between Leyland-based maintenance services company Enterprise and Liverpool City Council – has held LMH’s housing maintenance contract for nearly five years.

But now all 300 people who work on that LMH contract, which will end in March 2009, have been issued with a redundancy notice.

LMH is required by EU procurement regulations to put contracts over a certain value that are due for renewal to tender to all bidders via the European Journal.

But a spokesperson for Enterprise told TheBusinessDesk: “The tender documents required several bids, one in which TUPE [Transfer of Undertakings Protection of Employment Regulations]  would apply, thereby protecting continuity of employment rights and others in which those rights would not or might not apply.”

TUPE Regulations mean employees that are transferred from one employer to another have their pay, terms and conditions protected.

The spokesperson added: “EnterpriseLiverpool is unable and unwilling to propose a tender to LMH which would not protect employees’ rights. 

“Enterprise has a strong, long term relationship with the City of Liverpool, its people and its loyal workforce. Enterprise is disappointed that its JV has been excluded after some five years of serving the tenants’ requirements successfully.”

Trade union Unite has entered the row, sitting firmly on the side of Leyland-based contracting company Enterprise.

It is concerned that LMH may be trying to circumvent existing employment law concerning the transfer of workers between contractors.

It added that by encouraging possible future contractors to bid for the contract without agreeing to protection for workers, LMH is giving a green light to 300 people having their pay and terms and conditions worsened.

“Unite and our fellow unions are very concerned about what we regard as LMH’s cavalier attitude to employment law,” said Tony Hayes, Unite’s local official.

“LMH should not be misleading future bidders for the service over their duties to the existing workforce. The law states that workers transferred to the new contractor should have their terms and conditions protected.

“It is simply wrong of LMH to think they can entice future contractors by suggesting labour costs can be cut and services provided on the cheap.”

Liverpool Mutual Housing told TheBusinessDesk it has complied with procurement regulations in relation to this contract. It added that it cannot enter into discussions about any one bidder until that process is complete.

Steve Coffey, LMH chief executive said: “LMH continues to be focused on delivering high-quality home improvements and housing services to its tenants. We will always aspire to excellence in service delivery and securing value for money from our contractor partners.

”We have always rigorously adhered to procurement guidelines.”