Trade union backs Peterborough City Council plans to bring public services in-house amid pay dispute

A trade union has welcomed a recommendation from Peterborough City Council to bring some of its public services in-house.

Around 400 workers at Peterborough Ltd, a private company wholly owned by the council, could rejoin the local authority as it looks to reform the way it delivers key public services.

These services, provided under the Aragon Direct Services brand, include household bin collections, street cleaning, parks maintenance, and school transport.

The move, which could cost the council between £2.9m and £3.6m, may see staff benefit from better council pay and terms and conditions, potentially ending a current industrial dispute over pay.

However, the council insists the motivation behind the proposed transfer of hundreds of staff is to gain greater control and oversight of public services, thus improving efficiency.

GMB Union members at Peterborough Ltd have been involved in a long-running pay dispute with the company.

Gordon White, GMB Regional Organiser, said the union welcomed the council’s recommendation to insource key services.

He added: “These services constitute most of the contact between the council and the electorate, so it makes sense to bring them back under council control.

“In the meantime, we will continue to use all available avenues to resolve the current pay dispute. We will also work with the council to fully understand their plans for these services whilst protecting and improving terms and conditions for all our members.”

If the recommendation is approved, it will end an arrangement that has been in place since February 2019 in which the council commissions the services from Peterborough Ltd.

The company also provides leisure and culture services for the council, which include Flag Fen and Peterborough Museum and Art Gallery.

These services would remain unaffected and continue to be sub-contracted by Peterborough Ltd to Peterborough Culture, Heritage, Learning and Leisure Ltd (PCHLL), with 250 staff and a specialist management team.

Cabinet members will be asked to consider the move at a meeting on Tuesday, March 11.

If cabinet agrees to the recommendations, the council will serve 12 months notice on the contract with Peterborough Limited. However, it will aim to bring the transfer of some or all of the services forward to an earlier date.

Councillor Angus Ellis, cabinet member for environment and transport, said: “Peterborough Limited provides some of our most public facing services which touch the lives of everyone in the city.

“We want to have more control over how these services are provided as well as the ability to look at how they can be provided more efficiently given how crucial it is that the council achieves financial sustainability.

“The council has recently successfully reviewed other companies and contracts, including Serco and Opportunity Peterborough – and transferred employees in house.

“This has given the council more say over how these services are provided and delivered financial savings.

“I would like to thank everyone at Peterborough Limited for their continued hard work and would like to assure all staff that we will keep them informed and updated as things progress.”