Hundreds of cleaners, gardeners and porters at Huddersfield Royal Infirmary are set to have their NHS contracts torn up.

Calderdale and Huddersfield NHS Foundation Trust (CHFT) is pushing ahead with a plan to transfer about 380 non-clinical facilities staff into a separate company.

The news has emerged on the day that unions claimed victory in a similar dispute at Mid Yorkshire Hospitals, which controls Dewsbury and District Hospital .

A strike was called off at Mid Yorkshire after bosses scrapped their proposals to transfer 900 non-medical staff to a new company.

Leeds hospitals have also shelved their plans and unions say Bradford is about to, although that is not confirmed.

But staff at HRI have lost the battle and are due to be transferred to a “wholly owned subsidiary” on August 31.

Facilities and maintenance workers at Calderdale are not included as they were already employed by an outside firm as part of the PFI arrangements that control the Halifax building.

Calderdale Royal Hospital, Halifax.

Hospital bosses have been tight lipped about their motives for the transfer but unions say the move saves them huge amounts as they can claim back VAT for all the supplies purchased. It also allows them to recruit new staff on terms and conditions outside of the NHS ones.

Unison has accused CHFT of privatisation and creating a “two tier workforce”, and said new staff would be getting considerably worse pay, sick pay, holiday entitlement and pension contributions.

Lesley Hill, who will be the boss of the company, told the Examiner that existing employees’ pay and perks would be guaranteed for 15 years.

Rob Demaine, a regional organiser for Unison, told the Examiner that a ballot for industrial action at CHFT held in June had failed after insufficient numbers of staff took part.

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He said 98% of those who did vote, agreed to a strike, but it did not meet the legal thresholds to allow industrial action to be valid.

“Unfortunately, they are going ahead with it,” he said.

“We can’t move forward with industrial action which gives them the green light.

“It’s disappointing and unfortunate as we’re already seeing different terms and conditions for new starters.

“The whole business leaves a nasty taste in the mouth; we’ve had reps thrown off site and members intimidated into not taking part in the official ballot.

“This move will put members’ jobs and terms and conditions in jeopardy and already they’re not the highest paid workers.”

Mr Demaine said it was his understanding that the government was going to close the tax loophole that saved the company cash and so it would purely be about offering inferior employment terms and being able to bid for contracts at other health providers.

When the plan first emerged last year, Colne Valley MP Thelma Walker, whose constituency includes the infirmary, said: “I am deeply concerned that Calderdale and Huddersfield NHS Foundation Trust is planning to privatise services involved in health care, through backroom deals.

“There is no need for the Trust to be siphoning off teams.

“These plans could pave the way for further privatisation in the future.”

Lesley Hill, the subsidiary’s new Managing Director, said: “The prime objectives of the wholly owned subsidiary are to drive improvements in service provision and to improve efficiency .

“All profits it makes will go back into the Trust to be invested in frontline clinical services.

“It will be accountable to the CHFT Board for doing so and all employees who transfer to it will have their pay, pensions and conditions guaranteed for the next 15 years.”

Lesley Hill of Calderdale and Huddersfield NHS Foundation Trust

Meanwhile, in North Kirklees, Batley and Spen MP, Tracy Brabin, has hailed the u-turn at Mid Yorkshire, whose Dewsbury site is in her constituency.

She said: “This is a victory for the hard-working staff at Mid Yorks who have a right to keep their status as NHS employees and it is a victory for the principles of our NHS .

“I am delighted that the trust has recognised the strength of opposition to the plans and have come to a decision that will safeguard our NHS for both staff and patients.

“While I realise that Mid Yorks are under incredible pressure to cut-costs as the Tory Government continues to underfund local NHS services, it cannot come at the expense of workers’ rights.

“Under no circumstances should NHS staff be facing a future where the terms and conditions of their employment are inferior to that of their colleagues.

“This victory sends a clear message in the NHS’ 70th year that we reject the path to privatisation and will continue to fight for a properly funded health service that is publicly owned and free at the point of use.”

Mark Braden, Director of Estates, Facilities and IMT, at The Mid Yorkshire Hospitals NHS Trust, said: “Our Trust Board has made the decision to cease all work on the formation of a Wholly Owned Subsidiary. Despite the uncertainty, our staff have continued to provide a quality service to patients, staff and visitors, for which the Trust board is very grateful.”