Co-op agrees outsourcing principles with unions

Unions at Co-operative Insurance, the Co-operative Bank and the internet bank Smile have negotiated an "agreement of principle" with parent company Co-operative Financial Services (CFS) on future outsourcing arrangements.

Finance-sector union Amicus, the T&G general union and the National Association of Co-operative Officials agreed last month to "an approach to organisational change that may consider outsourcing".

But any outsourcing initiatives will be subject to "fundamental principles", based on best practice adopted when CFS transferred its Life and Savings Administration section to IT firm Capita last year - a process that resulted in transferred staff being protected under TUPE (see the case law section elsewhere in this issue) and working in a CFS building less than a mile away from their old offices.

"We believe that this agreement with CFS sets a benchmark for managing outsourcing agreements," said Amicus regional officer Hugh Jones Glass. "It ensures that unions are involved in the decision-making process at the earliest possible opportunity, enabling Amicus to influence the outcome of CFS's discussions with third-party partners."

He added that the deal "emphasises corporate social responsibility" for both CFS and the third party, and "maximises the retention of skills and experience in the UK".