Care workers’ may take legal action if wages are cut
Jun 28 2007 by Jessica Shaughnessy, Liverpool Daily Post
UNDERPAID care workers may mount a wave of legal action against Liverpool care agencies if they see a 30% pay cut, it emerged last night.
Private care companies say they have no choice but to cut staff pay after contract changes by the city council – which unions say could drive some workers to industrial action.
Last night, agencies said com-plicated EU employment laws which protect staff’s rights could leave them open to legal action by employees – which they fear could push them out of business.
But the city council insisted it could not get involved in person- nel issues, and union leaders warned the buck stops with the employer.
One care agency source said: “It could get very messy. When the changes are implemented from July 1, staff know they face big pay-cuts. Contrary to what the council might say, we work by tight profit margins. If the coun- cil pays us less, we have to pay the carers less. But the council do not pay carers, we do, so we are the ones who have to sort it out.”
The agencies are concerned about a complicated European legislation called TUPE (Transfer of Undertakings), designed to protect employees when work is transferred to another firm. It means new employers cannot change their contract terms.
Another senior member of staff at a city care agency said: “No-one knows for certain exactly how TUPE is going to affect us. But, after taking advice, we have been warned that when the new contracts are implemented and a lot of clients are transferred to different agencies, the staff may be entitled to go with them.
“That would mean we would be unable to change their terms and conditions. We would have to pay what they are on now and under the new contracts it will mean we are not viable.”
GMB regional organiser Karen Atkinson said not only could the care companies face legal action under TUPE, but they may face collective industrial action.
She said: “The council may have implemented the changes initially, but it doesn’t necessar-ily follow that the companies have to follow through with them. They could put in more money of their own, they should talk with the unions.
“If the staff feel strongly enough about it, they could take a legal action under TUPE. But they could also take collective action on the grounds of change of contract.”
Executive director for social services Tony Hunter said: “Unfortunately, we just can’t get involved in staffing issues of private sector firms. The employees do not work for the council – they work for private organisations. I would certainly expect any professional and well-established company to take advice and fully investigate the implications of taking on staff from other agencies before doing so.”
Yesterday, Wavertree MP Jane Kennedy asked the Department of Health what measures were in place to protect the income of care staff working for contract-ors commissioned by a local authority and to ensure employers did not pay less than the statutory minimum wage.
Mrs Kennedy said: “Carers in Liverpool do a vital job and are already on low incomes. If wages are to be cut, it could spell disaster for the city.”
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