Unions attack move towards ‘privatisation’

Date: 01/06/2000

By Simon Taylor

THE European Commission is considering handing over the running of a wide range of support services to private companies and other external bodies, cutting the internal administration's workforce by around a third.

A report drawn up by internal administration director-general Horst Reichenbach suggests tasks such as printing, mail delivery, creche and restaurant management could be performed by outside bodies. But this has already prompted an angry reaction from staff unions, who see it as confirmation of their fears that the Commission is planning a large-scale privatisation of the institution's work.

Opposition to moves to hand over support services such as mail delivery to private firms was one of the main reasons for the first-ever strike by Commission officials in 1998.

The study by the internal administration department is part of the current 'peer review', under which all directors-general have been asked to identify which tasks they could shed if they were faced with a 5-15% reduction in staffing levels. These analyses will be discussed by the peer review group of Commissioners, which is due to decide by the autumn what tasks the institution should retain and which could be given to other bodies to make the best possible use of resources.

In a covering letter to staff attached to his report, Reichenbach states that he is "opposed to privatisation and the wider use of private-law contracts". But the study nevertheless concludes that 800 of his department's 2,235 full-time posts could be outsourced to private firms.

It says responsibility for services such as building management, removals, office and furniture supplies could be handed over to an implementing agency, as could all printing and copying work and mail delivery both between the Commission's numerous offices and to destinations outside - although it warns that the sensitivity of some documents could pose problems.

The report also suggests the running of the Commission's two creches could be contracted out, together with management of the catering service and the sports facility at Overijse, and another 100 posts for receptionists, archivists and maintenance staff.

Reichenbach's letter stresses that the study "is meant to provide input to the political process of the peer group exercise and does not constitute an action plan", adding: "The reduction, suppression or externalisation of activities are not decisions to be taken lightly and will need to demonstrate improved quality, greater efficiency and value for money, and offer appropriate guarantees to the staff concerned."

But FFPE staff union president Loek Rijnhoudt, said the proposals were "completely unacceptable". He added: "At one point Reichenbach says he is against outsourcing, but if you read the paper you see outsourcing all over the place."

The European Commission is considering handing over the running of a wide range of support services to private companies and other external bodies, cutting the internal administration's workforce by around a third.