New demands on private companies bidding for public service contracts have ruffled some feathers.

A joint statement by the Cabinet Office, Trades Union Congress (TUC) and the Confederation of British Industry (CBI) says that firms working for the State will have to give all staff basic skills training and information on unions, Personnel Today (July 22) reports.

Sounds like good news for lower-skilled workers and employees who have little knowledge of their rights at work. But other business groups are not as keen on the new rights, which they say will make it even harder for firms to win lucrative government contracts. This latest pact follows hot on the heels of a deal between the CBI, government and the TUC to give temps equal rights to permanent staff after 12 weeks in a job, fuelling fears that employment law is being decided by a “cosy club”.

A spokesman for the British Chambers of Commerce says: “Tendering for public contracts is complex enough without adding further layers of bureaucracy. This complexity often discourages smaller firms from submitting tenders.” Harrumph.

On the upside, the CBI says that these guidelines will mean that public services staff in all sectors are valued and get the opportunity to develop.

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