星空传媒

Bids to set up arm's-length management organisations could be hit by union opposition unless a loophole in staffing rules is closed, it emerged this week.

The government is under intense pressure to clarify staffing rules for councils' arm's-length housing management organisations, amid fears that confidence in the new bodies could be undermined.

Unions at Derby, where a 拢31m arm's-length company is due to go live in April following a successful tenants' ballot this week, have told the council that it should only second staff until the issue is resolved.

'Continuity of service', covering what happens when an employee moves from the arm's-length organisation to another council, lies at the heart of the dispute.

Local authority staff keep extra annual leave, maternity benefits and redundancy cover when they move to a new council. These benefits are also kept when staff transfer to a new social landlord.

But if an employee of a stock transfer landlord leaves for another local government job, they lose continuity of service and its benefits.

Unions are now calling for the government to clarify whether an arm's-length organisation is classed the same as an RSL, or if it is still considered part of the town hall.

Councils that are setting up ALMOs are determined the new bodies should be seen as part of the local authority 'family', and want specific reference to them in the regulations. Public sector union Unison is also pressing hard on the issue.

The DTLR is taking legal advice as a matter of urgency. But the Department of Trade and Industry, which formulates the rules, has said there is no need because existing regulations deal with the issue.

Derby council housing regeneration manager John Bloxsom said: "We will take every possible step to secure continuity of employment.

"We still plan to transfer staff to Derby Homes, but if the issue is not resolved quickly we will take further advice. It is of great concern to staff and undermines confidence."

New arm's-length staff will however benefit from a government pledge to end the "two-tier workforce", which allows worse conditions for new employees than those transferring.

DTLR secretary Stephen Byers (pictured) last weekend repeated his pledge to end the practice, but admitted no alternatives suggested so far were acceptable.

Councils planning full transfers from 2003 are likely to be told that they must harmonise conditions for all staff.

But the pledge could cause serious problems for existing transfer organisations. Weymouth and Portland Housing is cited in a new Unison report on the two-tier workforce that claims different conditions are widespread.

Chief executive Graeme Stanley, as a new staff member, is among those with less favourable annual leave and sick pay entitlements.

He said: "We have to harmonise terms, but I cannot see a way without huge costs. The danger is that you end up having to buy your way out of more generous terms. "The essential thing is to negotiate and bring staff with you."