TRADE unionists have hit out at plans to launch a council-owned company for waste collection over fears staff will receive poor employment conditions.

Cheshire West and Chester Council’s cabinet agreed to go ahead with plans to set up a local authority trading organisation (LATO) last month.

It will take over the borough’s waste collection service from March 29, 2020, when Kier’s contract comes to an end, and is intended to be run with cooperative principles.

But West Cheshire Trades Union Council (TUC) claims its workers will be employed on worse pay and conditions than other CWaC employees.

Cecilia Jones, secretary of West Cheshire TUC, said: “The council says it is bringing the service into the public sector again, but it is intent on doing little more than rebadging the company while denying staff the benefit of council conditions.

“Unlike staff in other council companies these workers will even be denied access to the council pension scheme and their employment terms will be significantly inferior.

“The council promises no redundancies and the guarantee of the living wage, knowing there is no threat of redundancies and that staff are almost all paid the living wage.”

The TUC fears that the LATO’s staff will have worse pay and conditions than other council employees – such as lower allowances for occupational sick pay, annual leave or leave for bereavement, maternity and paternity.

It also points out that most LATO staff will not have access to the Local Government Pension Scheme (LGPS) – and suggests any attempts to move them over to the LGPS after the LATO is set up would be costly and time-consuming.

Instead of setting up the LATO, the TUC wants CWaC to bring waste collection wholly in-house as a council service, allowing staff equal access to employment terms as other council staff.

Kenny Cunningham, chairman of West Cheshire TUC, added: “The new operation is supposed to be based on ‘co-operative principles’.

“But the council has set out every parameter of the business – including finance, employment terms, efficiency savings of £1.4 million and various performance obligations – all before any talks with staff and trade unions.”

The TUC also has concerns around the track record of CWaC’s other council-owned companies – highlighting long delays in Edsential staff receiving the local living wage set by council policy.

CWaC says that setting up the LATO was the recommended option for running the borough’s waste collection and recycling service following a detailed appraisal of the various ways the council could take over the contract.

And it has moved to reassure staff over their future employment terms.

Cllr Karen Shore, cabinet member for environment, highways and strategic transport, said: “There may be scope for the LATO to trade and secure external work in the future. This would be far more restrictive if the service was delivered in-house.

“Under TUPE [protection of employment] regulations, staff will transfer on existing terms and conditions into the LATO.

“Some of the staff are already on local government terms and conditions and are members of the LGPS, and that will continue.

“Members of staff who are not on LGPS will continue on existing terms and conditions and will be offered a comparable pension scheme to their current one.

“This arrangement will safeguard jobs and provide staff with the assurance over their existing financial terms.

“The LATO will be committed to paying the living wage and will also reduce the number of agency staff in favour of offering more permanent contracts.”