But what's important today is the effect of the spending cuts, and for A4e it must be mixed news. There will be a lot more unemployment, so no shortage of clients, but it may be harder to get job outcomes, so harder to make a profit. While the reforms of the benefits system will not be evident for a long time, the various blows to the out-of-work will be felt very quickly. However, the slashing of the money given to local authorities will bring opportunities to A4e and other outsourcing companies, which can employ people more cheaply than can the public sector. If we see the government's actions today as ideologically driven (and I do) then the privatisation of the remnants of our public services is part of the project.
Wednesday, 20 October 2010
Cuts
Earlier this week there was one of those business congratulating itself occasions, with the publication of the Sunday Times HSBC Top Track 250 league table, 2101. A4e is 234th. But see the table showing that in 2002 they were 23rd in the "fast track", and 95th in 2003. In 2010 they are 83rd in the "profit track" as well as 234th in the "top track". Emma Harrison, of course, is delighted, according to The Star and there was a dinner to mark the occasion.
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Unless it has changed a private contractor who gets a contract to provide a service formerly operated by a council cannot re-employ former council employees to do the same job on less favourable terms and conditions than they enjoyed with the council. I think it's called TUPE. So A4e may not find it so easy, or cheap, as the might anticipate. Then again, A4e have access to a huge army of unemployed, so perhaps they expect them to do the work?
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