G4S is just the latest in a long line of outsourcing disasters

When will we learn?

The left has long understood many of the many problems of outsourcing: the fact that it typically replaces at least semi-decently paid, full-time staff, with career paths and a commitment to the service ethic, with a casualised, often minimum wage, rapidly-changing group of workers who are struggling to survive – often working two or three jobs. (Even in “professional” areas such as GP surgeries and IT, relatively low pay and casualisation is the norm.) The cash not going to the work force is redirected into shareholders' pockets, all too often through off-shore, tax haven companies that fail to contribute tax to the society in which they're based, from which they’re extracting profits.

But most of all, we’ve understood that it doesn’t work. We’ve seen it fail again and again. The outsourcing of hospital cleaners contributed to a rise in hospital-acquired infections and super-bugs. Multiple government IT projects have gone seriously and expensively off the rails. Then there’s the still unfolding scandal of the ruinously expensive PFI scheme for hospitals (and other public institutions such as schools) which has just claimed its first victim, with the South London Healthcare NHS Trust going into administration. And railways and the Tube, and call centres…. the list goes on and on.

And now we’re finding, with G4S unable to guarantee that it will provide the contracted staff for the Olympics, that we’re calling on the army to help. So visitors to London will see a militarised Olympics, with expensively trained soldiers doing work that they have no training, and possibly no inclination, for. It’s difficult to know which is worse soldiers doing jobs they aren’t suited for or for that work to be done by some of the many £2.60/hour security “apprentices” that we learnt about during the Jubilee security outsourcing scandal. These arrangements for Olympics security may not be a recipe for public safety or confidence.

The writing is on the wall, but a lot more still has to be done to highlight the basic flaw of outsourcing, the reason why it does not, cannot work: the supplier of outsourced services and the purchaser have different objectives. It's as though your service is balanced on a rubber band held by two people running in different directions. Sooner or later it is going to snap, or one side be dragged back.

One small example from my working life, details anonymised for contractual reasons. At one time a widget producer had staff security people, who understood their job to be assisting in the smooth production of widgets. They knew the company, they knew the staff, they understood at least a bit about making widgets, and they used their common sense, their knowledge and some flexibility in applying the security rules to assist in the making of widgets. Then they were outsourced. New staff came in, employed by the security firm, for the purposes of security. They applied the rules as laid down by their company rigidly and inflexibly (indeed they were at risk of losing their job if they didn’t).

They didn’t know or care about the production of widgets, or that they were actively hampering their production. One told me – while I was trying to get a freelance widget worker through the system: “We’re subject to penetration tests you know.” (And no this wasn’t MI5 or Scotland Yard.) Cue rampant frustration, many wasted hours of staff time and a considerably less pleasant working environment. And fewer widgets produced.

As with so many aspects of our neo-liberal, hypercapitalist economy, outsourcing doesn’t work even in its own terms. It is a disaster, on financial, service and social grounds. We've got a government now that's ideologically wedded to it, as part of the "market knows best" religion, despite the obvious collapse of the case for that creed in the past few years, and the main opposition party that finds itself too close to its past failures to publicly recant – even if it wanted to, which given the return of Tony Blair you’d have to conclude it doesn’t. On top of that, we've got a whole generation of people in senior public service and private sector management with crisp, expensive and intellectually mediocre-to-worthless MBAs in this outsourcing "religion", who lack the knowledge of any other approach or the ability to adapt to the obvious facts under their nose.

There's a long road ahead to reverse direction from this outsourcing dead end. But we can start by saying, loudly, clearly and often, that outsourcing is a disaster. It does not, cannot, work as well as forms of organisation based on shared goals, whether they be co-operatives or public ownership at local or national level, or at least a company in which permanent, decently paid staff are working together towards the same aim.

Natalie Bennett is chair of Green Party Women and the former editor of the Guardian Weekly

 

Soldiers have been drafted in to help with security at the 2012 Olympics after G4S failed to recruit enough staff. Photograph: Getty

Natalie Bennett is the leader of the Green Party of England and Wales and a former editor of Guardian Weekly.

Photo: Getty
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Brexit could destroy our NHS – and it would be the government's own fault

Without EU citizens, the health service will be short of 20,000 nurses in a decade.

Aneurin Bevan once said: "Illness is neither an indulgence for which people have to pay, nor an offence for which they should be penalised, but a misfortune, the cost of which should be shared by the community."

And so, in 1948, the National Health Service was established. But today, the service itself seems to be on life support and stumbling towards a final and fatal collapse.

It is no secret that for years the NHS has been neglected and underfunded by the government. But Brexit is doing the NHS no favours either.

In addition to the promise of £350m to our NHS every week, Brexit campaigners shamefully portrayed immigrants, in many ways, as as a burden. This is quite simply not the case, as statistics have shown how Britain has benefited quite significantly from mass EU migration. The NHS, again, profited from large swathes of European recruitment.

We are already suffering an overwhelming downturn in staffing applications from EU/EAA countries due to the uncertainty that Brexit is already causing. If the migration of nurses from EEA countries stopped completely, the Department of Health predicts the UK would have a shortage of 20,000 nurses by 2025/26. Some hospitals have significantly larger numbers of EU workers than others, such as Royal Brompton in London, where one in five workers is from the EU/EAA. How will this be accounted for? 

Britain’s solid pharmaceutical industry – which plays an integral part in the NHS and our everyday lives – is also at risk from Brexit.

London is the current home of the highly prized EU regulatory body, the European Medicine Agency, which was won by John Major in 1994 after the ratification of the Maastricht Treaty.

The EMA is tasked with ensuring that all medicines available on the EU market are safe, effective and of high quality. The UK’s relationship with the EMA is unquestionably vital to the functioning of the NHS.

As well as delivering 900 highly skilled jobs of its own, the EMA is associated with 1,299 QPPV’s (qualified person for pharmacovigilance). Various subcontractors, research organisations and drug companies have settled in London to be close to the regulatory process.

The government may not be able to prevent the removal of the EMA, but it is entirely in its power to retain EU medical staff. 

Yet Theresa May has failed to reassure EU citizens, with her offer to them falling short of continuation of rights. Is it any wonder that 47 per cent of highly skilled workers from the EU are considering leaving the UK in the next five years?

During the election, May failed to declare how she plans to increase the number of future homegrown nurses or how she will protect our current brilliant crop of European nurses – amounting to around 30,000 roles.

A compromise in the form of an EFTA arrangement would lessen the damage Brexit is going to cause to every single facet of our NHS. Yet the government's rhetoric going into the election was "no deal is better than a bad deal". 

Whatever is negotiated with the EU over the coming years, the NHS faces an uncertain and perilous future. The government needs to act now, before the larger inevitable disruptions of Brexit kick in, if it is to restore stability and efficiency to the health service.

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