RCM advice for workplace reps on wholly owned subsidiary

By Alice Sorby, Employment Relations Advisor on 14 March 2018 Workplace representatives

A 'wholly owned subsidiary' is an arms length organisation owned by an NHS trust. In effect it means that in-house services will be provided by a separate company employing staff who currently work for the NHS.

Trusts state that they aim to save money by setting up 'wholly owned subsidiaries' and exploiting a tax loophole. However the RCM is concerned that this could lead to the transfer of staff and accompanying threats to pay, terms and conditions with new staff being employed on non-NHS terms and conditions without access to the NHS pension scheme. The RCM opposes further fragmentation and privatisation of the NHS which could affect continuity of care in maternity services and lead to poorer care for women, babies and their families.

Concerns have been raised relating to this issue at the Social Partnership Forum (SFP) and though we are not aware that this is an issue for any maternity services, where this is happening and being opposed, do work with Staff Sides locally. Please let us know if this becomes an issue in maternity services in your trust.

If you have any queries about this please contact Alice on alice.sorby@rcm.org.uk