Construction union UCATT are calling for an urgent rethink of how council services are delivered following reports that Connaught, one of the leading local government outsourcing companies, are on the point of administration.
Connaught which employs 10,000 workers has been experiencing financial problems for months.
While Connaught's future remains highly uncertain UCATT are instructing affected workers to continue to work normally unless they are formally told in writing to do otherwise. And contact UCATT for further advice on their employment rights.
Alan Ritchie, General Secretary of UCATT, said: "Outsourcing is expensive and leads to poorer services. With private contractors unlike council services, there is always a danger they could go out of business. Councils need to consider taking essential services such as housing maintenance back in house.
"The biggest losers are tenants who have a genuine fears that vital repairs and maintenance work will not be completed. Councils have a duty of care to ensure that these services are fulfilled."
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