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The principle topic of debate at the TUC conference may have been Iraq, but public-private partnerships (PPPs) were also high on the agenda.

The concerns expressed at this year's TUC conference – that PPPs are a mechanism by which the terms and conditions of those employees engaged by the private sector in undertaking public sector work are eroded – are not new. This issue was debated last year.

Where staff transfer from the public to the private sector, their public sector terms and conditions of employment are normally protected by the Transfer of Undertakings (Protection of Employment) regulations (TUPE). Staff recruited by the private sector to work alongside staff who transfer do not have the benefit of this protection and are often employed by the private sector on different – and less favourable – terms.

At last year's round of conferences the government, under pressure from the unions, said it intended to ensure that new recruits engaged by the private sector were employed on comparable terms of employment to their public-sector counterparts. One year on, some would say that, despite the promises, there has been little action.

In July the Office of the Deputy Prime Minister published a draft consultation paper: Best Value and Performance Improvement. If the obligations set out in this paper are implemented, then the effect of this will be that (other than in relation to pension benefits – see below) new employees engaged by the private sector to undertake public-sector work will have to be employed on terms broadly comparable to those of staff who transferred under TUPE. What is meant by comparable terms and conditions remains to be seen. Does this mean basic salary and shift allowances only or does this extend to holiday and sick pay entitlements?

In addition, the private-sector employer will be required to offer the new recruits, as a minimum, a pension scheme in which it will be required to make employer contributions linked to employee contributions of up to 6% of salary.

While the government is committed to using the private sector as part of its plan to expand and modernise the public sector giving better value for money, these changes will have cost implications and ultimately the question will be: who is going to bear this cost?