Case Study
Z01_JOHN2020_09_SE_EM12.QXD
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Page 613
CASE STUDY
Cordia LLP: service reform in the public sector
David Potter and Gerry Johnson
Throughout the world governments – central and local – are wrestling with how to manage increasingly pressured budgets, increase efficiency and improve quality of services. Glasgow City Council in Scotland has made structural changes to its services that are amongst the most radical in local government. Cordia is the result of one such change. Previously Cordia was a Council department. In 2009 Direct and Care became a Limited Liability
Partnership (LLP) with the remit to develop its services as a business operating at ‘arm’s length’ from the Council.
But what would be involved in developing and implementing a strategy to deliver the benefits of such a change?
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Introduction
Direct and Care Services (DACS) was a department of
Glasgow City Council. It provided school catering, home care services and facilities management to other departments of the council and more prestigious catering services to public and private sector customers through
Encore Hospitality Services. The department had been led by Fergus Chambers as Executive Director. Changes were triggered when, in 2008, Glasgow City Council settled an equal pay dispute which resulted in manual pay rates for
DACS employees increasing by an average of 20 per cent.
Fergus explained:
Our predominantly female workers were graded at the same level as the predominantly male workers in other
Council departments. But in many of those departments the male manual staff got bonuses and therefore we were open to pay disputes; we were not equal pay proof.
We had to compensate staff over the last 5 years. We also had to develop a new pay and grading structure for the future. I have to ‘break even’ over a 3 year rolling period, so the Council decided that if we did not improve upon our competitive position they may have to consider
10/13/10
9:06
Page 613
CASE STUDY
Cordia LLP: service reform in the public sector
David Potter and Gerry Johnson
Throughout the world governments – central and local – are wrestling with how to manage increasingly pressured budgets, increase efficiency and improve quality of services. Glasgow City Council in Scotland has made structural changes to its services that are amongst the most radical in local government. Cordia is the result of one such change. Previously Cordia was a Council department. In 2009 Direct and Care became a Limited Liability
Partnership (LLP) with the remit to develop its services as a business operating at ‘arm’s length’ from the Council.
But what would be involved in developing and implementing a strategy to deliver the benefits of such a change?
●
●
●
Introduction
Direct and Care Services (DACS) was a department of
Glasgow City Council. It provided school catering, home care services and facilities management to other departments of the council and more prestigious catering services to public and private sector customers through
Encore Hospitality Services. The department had been led by Fergus Chambers as Executive Director. Changes were triggered when, in 2008, Glasgow City Council settled an equal pay dispute which resulted in manual pay rates for
DACS employees increasing by an average of 20 per cent.
Fergus explained:
Our predominantly female workers were graded at the same level as the predominantly male workers in other
Council departments. But in many of those departments the male manual staff got bonuses and therefore we were open to pay disputes; we were not equal pay proof.
We had to compensate staff over the last 5 years. We also had to develop a new pay and grading structure for the future. I have to ‘break even’ over a 3 year rolling period, so the Council decided that if we did not improve upon our competitive position they may have to consider