Reed attacked by unions

Recruiter accused of underpaying staff on New Deal scheme

Recruitment giant Reed has defended its involvement with government employment schemes in the face of bitter opposition from unions.

The Public and Commercial Services Union (PCS) has submitted a report to a parliamentary watchdog highlighting concerns over the way the organisation has handled its involvement with the government’s ONE advice scheme and the New Deal employment programme.

In its report to the Commons’ select committee on work and pensions, the PCS complained that Reed had underpaid staff on the ONE scheme in Northamptonshire and failed to consult with or recognise the union.

Chris Melvin, managing director of Reed in Partnership, the branch of Reed involved with government projects, said: ‘So much of what the PCS said was not true – our pay rates were, and still are, better than those paid by the Benefits Agency and the Employment Service.’

The report stated: ‘The salaries offered by the companies have not increased over the life of the contract but the Employment Service and Benefits Agency salaries have. It is also clear that the rate paid to agency staff has not increased since the contract commenced in 1999.’

According to the report, the private sector companies also failed to innovate. One of the government’s original reasons for involving the private sector in the scheme was that they would bring in new ideas.

Instead, the PCS claimed the agencies either abandoned novel internet schemes or simply rehashed existing schemes the Employment Service put in place.

Melvin said: ‘Reed in Partnership’s delivery of the ONE pilot in North Nottinghamshire is one of the best in the country judged across all the main indicators.’

Action for Jobs and Deloitte, the two other companies that are involved with the scheme, have recognised the PCS and consulted with them on issues such as pay and working conditions.

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