In the present climate of cuts and recession there is a potentially explosive situation developing between social enterprise and the trade union movement, which if not addressed could split the social economy
With the election of New Labour in 1997, the growth of social enterprise as an alternative to direct public sector delivery became a reality. New Labour chose to use the National Health Service as a laboratory for devolved forms of public service delivery.
The social enterprise sector was given funds through the Social Enterprise Pathfinder Programme, a dedicated Social Enterprise Unit inside the Department of Health and a new corporate structure – the Community Interest Company. All of these were orchestrated by successive secretaries of state to enable social enterprises to take over NHS services.
The trade unions that have been most affected by the public sector reform agenda, Unison and Unite, have responded defensively – with Unite defeating a proposed social enterprise externalisation in Tower Hamlets but seeing externalisation to a social enterprise go ahead in mid and south east Essex.
There are genuine concerns about the growing presence of social enterprise in public services which have not been in any way addressed.
Chief among these is ensuring accountability for NHS services provided by social enterprises, which are effectively outside the NHS ‘family’ brand.
Other concerns include the disparity in pay and pensions between groups of staff employed by social enterprises. These concerns have been highlighted as challenges in the independent two-year evaluation of the Pathfinder programme and need to be addressed.
Trade union resistance to externalisation and to social enterprise is likely to grow as spending cuts bite. Also the formation of New Schools – which could be social enterprises – will bring educational trade unions into the social enterprise area.
The political environment for social enterprise is changing as unemployment increases, budgets are cut and public sector jobs are threatened. It would be useful if someone could broker a summit between trade unions and social enterprises that ensures unity, solidarity and the social economy survive these difficult times.
Dr Chris Newis, Footprint Associates
...as Susan Boyle might have sung. On SocialEnterpriselive.com this week:
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