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Employee relationsLatest NewsEconomics, government & businessJob creation and lossesTrade unions

MoD slammed by union after transferred staff are made redundant

by Greg Pitcher 9 Jul 2008
by Greg Pitcher 9 Jul 2008

The Ministry of Defence (MoD) has been slammed after hundreds of employees it transferred into a private-sector contractor were made redundant.

The Public and Commercial Services (PCS) union hit out at the bungled Defence Information Infrastructure programme after its failings were exposed.

A report by the National Audit Office found that the project â€“ designed to reform the MoD’s IT systems from offices to battlefields â€“ was late, over budget and riddled with problems.

The MoD signed a 10-year contract in 2005 with the Atlas consortium, transferring more than 1,000 civil servants to the private sector firm.

But costs have spiralled from £5bn to £7.1bn, the first phase is 18 months late, much of the software does not work, and Atlas plans to make hundreds of workers redundant.

PCS general secretary Mark Serwotka said: “This is an all too familiar tale of public sector IT privatisation going wrong, and could have a serious negative impact for the MoD’s operations both here and overseas.

“It is appalling that the MoD transferred its staff into a redundancy situation, and we will be demanding that the department applies the recently agreed Cabinet Office guidance on considering in-house bids and staff protection.”

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Tim Burr, head of the National Audit Office, said: “It was always going to be a demanding task for the MoD to replace its diverse information technology with a single, high-quality system.

“The programme has run into difficulties, and further concerted action will be needed to increase the rate of roll out of terminals and to deliver the remaining software.”

Greg Pitcher

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