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Government hospital privatisation policy in doubt as LHMU launches legal action

Wed 17 Nov 10 Comments

The Barnett government’s contract negotiations with Serco to run 31 different services at the flagship Fiona Stanley hospital have been thrown into doubt.

The LHMU has received legal advice that the government’s decision to privatise services at the hospital is illegal because it is a breach of the hospital support workers’ agreement, which features a no privatisation clause.
The government’s decision breaches clause 13.3 (Contracting Out and Privatisation) of the agreement which says:
(a) The parties recognise the importance of promoting long term job security and career development for employees subject to this Agreement.
(b) With the exception of those contracts for services currently in existence, there will be no contracting out or privatisation of functions or duties performed by directly employed workers during the life of this agreement.
As a consequence we will be starting proceedings on Thursday in the Industrial Magistrate’s Court to prosecute the state government for a breach of our agreement and we will be seeking an order from the Court preventing the state government from signing a contract with Serco pending the outcome of the case.
The Barnett government have previously said they wish to have the contract with Serco signed by Christmas.Hospital support workers at parliament
Dave Kelly, secretary of the LHMU said: “Hospital workers know how bad privatisation is for the quality of healthcare, which is why they fought very hard to ensure the anti-privatisation clause remained in their agreement.
“They are furious that the Barnett government has shown a flagrant and reckless disregard for that agreement by continuing their negotiations with Serco, who will be there trying to squeeze profit out of patient care by making cut backs to an already stretched system.
“If the government wants to avoid a lengthy and costly legal dispute over their increasingly rushed dealings with Serco, they should pull out of negotiations completely and revert back to a policy which will see hospitals in the state stay safely in public hands.”
Pressure is building on the Barnett government over its privatisation policy.
Last week, the LHMU’s executive body authorised an escalating program of industrial action that will hit every government hospital in the state. The industrial action could include work bans, stop work meetings and rallies.
Independent polling showed the government’s privatisation policy is prompting deep dissatisfaction in marginal seats.

More than 23,000 signatures have been collected on anti-privatisation petitions.
A vote on Labor’s No Privatisation in Schools and Hospitals bill, which is scheduled to happen today (Wednesday), is also likely to go down to the wire with government MP Vince Catania crossing the floor to support it along with independents Adele Carles and John Bowler.

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