Unite Union has written to the Prime Minister John Key requesting the government abandon plans to run the Council through Council Controlled Organisations because of dangers to the pay and conditions of staff employed by business interests at arm’s length from the council.

We have pointed out that the argument for CCOs is based on the belief they deliver services more “efficiently” than if those services are provided directly by the council. However this is untrue because the “efficiency” comes simply from reducing pay and conditions of employment of staff. The government has already complained that it believes public sector pay rates are ahead of the private sector so the dangers to staff from Rodney Hide appointed CCOs are evident.

Unite itself represents only a small number of staff employed in the Auckland Regional Council call centre but the threat extends across all those employed at the Auckland Regional Council and the other Auckland local bodies to be demolished in the supercity restructure.

Unite has asked the government not to legislate any CCOs but to leave that decision to Auckland’s elected representatives in the new council to be elected later in the year.

The letter sent to John Key is copied below.

12 April 2010

John Key
Prime Minister
Parliament Buildings
Wellington

Kia ora Mr Key,
Request for Auckland to decide on CCOs

Unite Union represents employees in the Auckland Regional Council call centre in Auckland. Our members provide customer services for Aucklanders across the region and with the proposed changes to the delivery of local body services here it is possible these roles may be restructured to come under the control of one or more Council Controlled Organisations.

This note is to express our concern at the prospect of our members being employed in such a way at arm’s length from the new council.

Typically the argument for CCOs is based on the belief they deliver services more “efficiently” than if provided directly by the council. This is untrue. In cases where the cost to provide the service is less through a CCO it is only because the pay and conditions of employment for employees are reduced.

Before final decisions are made by the government in the next month or so we wish to express our concern and dismay at the prospect of lowered pay and poorer conditions of employment for staff who are already the poorest paid employees within the organization.

We would therefore urge the government to abandon plans to legislate and force CCOs on Auckland and leave such decisions to the people of the region to make through their council representatives to be elected later this year.

We look forward to hearing from you.

Regards,

Mike Treen
National Organiser