Union chiefs and opposition members have called for plans to outsource council services to be scrapped — declaring the process a "sham".
UNISON spoke out after two of the three interested bidders withdrew from the running to form a Public Private Partnership (PPP) with Chesterfield Borough Council.
The authority is looking to outsource its customer services and IT departments — aff
ecting 180 employees — in a move which it says will save at least £400-500k and attract investment worth hundreds of thousands of pounds.
But UNISON regional organiser Dawn Bushnell said: "The workforce at Chesterfield is already lean and productive and it comes as no surprise that two companies have decided they cannot make a profit from the contract.
"UNISON is amazed that a council would press ahead with only one bidder left in the game. This process is now a sham and should be halted."
Kier Group, a subcontractor to the remaining bidder Arvato, is currently appealing against an £18m fine imposed by the Office of Fair Trading for illegal price fixing.
UNISON wants the PPP process dropped in favour of an in-house review of services — a call backed by the council's Labour group.
Cllr Toby Perkins said: "It is hardly credible that the borough council are going to be able to negotiate a good deal for Chesterfield taxpayers or to keep their guarantee of Chesterfield based jobs."
A spokesman for Chesterfield Borough Council said the pressure was very much on local councils to continue to make savings in response to the current economic crisis and widely publicised squeeze on local authority budgets.
She said the council would continue with Arvato's tender and assess whether their proposals offered a good deal, adding: "If it does represent a good deal, the council will continue with the procurement through to a 'go live' date in the autumn this year. If it does not, the council will abort the procurement, mindful that it will have to make the required savings through other means."
