Unite campaigns for Medway ‘to stay in the NHS’, as social enterprise threat looms

23rd October 2009

Unite, the largest union in the country, is launching a campaign for the health services in Medway ‘to stay in the NHS’, as managers push for the creation of a social enterprise.

One of the key planks of the campaign will be to explain to the 250,000 people living in the Chatham, Gillingham and Rochester areas the impact that a social enterprise - a body one step removed from the NHS proper – will have on the delivery of care.

Unite, along with the other staff side unions, will be asking managers at Medway Community Healthcare to hold a ballot of the 1,350 staff by the end of the year, as to whether they are in favour of transferring to a social enterprise.

Social enterprises are commercial organisations that can win – and lose – contracts to provide services to the NHS for a limited period of time.

If the social enterprise loses its contracts to, for example, a North American private healthcare company in five years time, jobs could be lost and services to the public could become fragmented. The ethos of a NHS providing a unified, joined-up service for patients could disappear.  

Unite also argues that these moves to effectively privatise the trust goes against current government policy, which is that the NHS is ‘the preferred provider’ of choice. This means that outside providers can only be asked to tender if a trust is deemed to be failing and has not taken remedial measures.

There is also the issue about whether a social enterprise would pay VAT – a tax from which the NHS is currently exempt. Such an additional financial burden could question the whole viability of the social enterprise experiment.

Unite’s lead officer for health in the south east region, Sarah Carpenter, said: "We have had a very productive meeting with our members and, as a result, we will be actively campaigning to keep Medway’s services in the NHS.

"It is clear that social enterprises are a leap in the dark in terms of provision of services; the employment conditions and pensions of NHS staff that could be severely eroded, or even lost; and the viability of the financial model proposed, if VAT is charged on its services.

"You could get a situation where a visit by a health visitor to a young mum suffering from postnatal depression will result in the organisation having to pay 17.5 per cent VAT when it comes to internal accounting. That’s unacceptable.

"We want to make the public aware of what a social enterprise will actually mean for families and communities in Medway. Social enterprises can’t be imposed by stealth. We need the widest possible consultation."
 
ENDS

NOTES TO NEWS EDITORS:

  • Unite has welcomed the government’s statement, made last week,  that the NHS is ‘the preferred provider’ of choice when it comes to delivering services, rather than private sector organisations.
  • In his letter to the chief executives of the strategic health authorities and primary care trusts, NHS chief executive, David Nicholson said: "The NHS as the preferred provider is about getting the best care for patients and looking after the NHS staff who care for them. Our aim is to ensure that NHS staff are treated fairly and engaged in decisions."
      
    The Patchwork Privatisation of our Health Service – a special report can be downloaded from www.unitetheunion.com/health and then clicking on Health B4 Profit campaign.

For further information, please ring: Sarah Carpenter 07768 931 303


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