§ Mr. Gorst
asked the Secretary of State for Defence whether contract cleaning companies retained by his Department will be required to reduce the wages and holidays of their employees in order to comply with his Department's request for a reduction in their contract costs; and whether, if they fail to make the cuts requested by his Department, their contracts will be terminated.
§ Mr. Lee
The Ministry of Defence has made no request to companies with which it has cleaning contracts to reduce their contract costs.
However, cleaning contractors have been asked to submit proposals for amending their current contract to include firm fixed prices and, in keeping with the decision of the House to rescind the fair wages resolution, to delete any remaining obligations relating to minimum pay and holidays.
The proposals when received are being used as a basis for renegotiation of the conditions of contracts. All renegotiations so far have been concluded on mutually acceptable terms.
§ Mr. Gorst
asked the Secretary of State for Defence whether the contractual arrangements between his Department and contract cleaning companies make 426W provision for his Department to cancel contracts if the contractor declines to reduce the contract price without any corresponding reduction in the tasks that have to be performed undder his contract.