Article: Judges deal blow to competitive tendering

THE Government's policy of contracting out public services suffered its most serious blow yesterday when the Court of Appeal made a critical decision in favour of a group of hospital cleaners.

Using European law, the judges over-ruled industrial tribunal findings and ordered that the employees at Orsett Hospital, Essex, were due compensation because they had been re-employed by new contractors on inferior terms.

The ruling, under the "acquired rights" directive, calls into question the degree to which the British government can avoid European legislation by simply opting out of the social chapter of the Maastricht treaty.

It also undermines the ability of private firms to undercut publicly ...

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