§ Mr. Gordon Brownasked the Secretary of State for Defence if he will make a statement about the contract between his Department and Olscot Ltd for services at Rosyth dockyard previously covered by the fair wages resolution; and whether Her Majesty's Government have influenced the level of wages to be offered to Olscot employees.
§ Mr. LeeThe Ministry of Defence has no contract with Olscot Ltd for cleaning services at HM dockyard, Rosyth. It does, however, have a contract with that company for cleaning services at HMS Cochrane, which is adjacent to the dockyard.
In the latter part of 1983, the MOD asked all of its cleaning contractors, including Olscot Ltd, to submit proposals for amending their current contracts 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 were used as a basis for renegotiation of the conditions of the contracts. All renegotiations so far have been concluded on mutually acceptable terms. During the renegotiations with Olscot Ltd the MOD made no attempt to influence the level of wages that the company offers its employees.