Wednesday, 4 June 2014

Your Choice Barnet Ltd - Exposed as a broken business model

There is a truly enlightening story on the Times website today. The main thrust of the story is about the strike vote by Your Choice Barnet workers, in response to a threatened 10% pay cut.

In the article a YCB spokesperson said
 “Prior to the salary reductions changes we were being paid a market rate of £18.43 per hour and it was costing us £21.81 per hour and this was not sustainable."
 This exposes the fact that YCB themselves admit that they cannot provide the services at a Market Rate. They had all of the figures they needed when writing the business case to outsource the service. Even before the cut, staff in the field were getting nowhere near the £18.43 rate. This means that the company is innefficeint and has a top heavy management structure, with executives on huge salaries.

At the task and finish group, Labour signed up to say that the service should not be brought in house. As the company now admits it cannot provide services at the market rate, this decision must be reconsidered.

1 comment:

Ron said...

when i asked in the council meeting for the market research that support their income assumption, i was told by the contractor who preprepared the business case: Oh, we don't need it, we know the market...
the truth is that there was never a valid business case. the piece of propaganda they council delivered was based on political decision to assassin the organise labour.