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Article: Judges deal blow to competitive tendering
- Article from:
- The Independent (London, England)
- Article date:
- May 20, 1994
- Author:
CopyrightCopyright 1994 The Independent - London. Provided by ProQuest LLC. (Hide copyright information)
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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 ...