Council staff left in dark after EDS row

Services Wandsworth set to axe services giant in one month's time.

More than 130 EDS staff are facing an uncertain future following the decision by Wandsworth Borough Council to indefinitely suspend key elements of the services giant's £3.2 million per year contract.

A special meeting of the council's policy and resources committee on 17 September supported a recommendation to temporarily resume control of the payment of housing and council tax benefit.

Failure by EDS to meet agreed standards of service led to the decision, which will be implemented in four weeks' time.

Wandsworth rejected the option of terminating the contract in full because it is reliant upon EDS' expertise in managing the rest of the council's IT infrastructure.

The move has left staff who deal with benefits payments in limbo.

While some or all of them will be expected to transfer back to the council's pay roll, in legal terms, they could remain EDS' responsibility.

Prior to last week's meeting, the council rejected an offer of compensation from EDS which would have clarified the situation by allowing full termination of the contract.

No figures were disclosed but Simon Heywood, director of finance at Wandsworth, said: 'It falls well below the amount that would cover our additional costs.'

Philip Bradley, secretary of Staff Side, part of Unison, which is representing the legal interests of the EDS staff, did not rule out the possibility that some of the affected staff would face redundancy.

In a statement, EDS insisted the contract was still active and attacked Wandsworth's 'unsuccessful' track record of out-sourcing.