Job losses likely in single HR and payroll system

Health union Unison claims that a£325m deal to create a single computerised NHS human resources and payroll system could result in job losses.

Last week the NHS signed a 10year contract with a consortium including Oracle, McKesson, PwC Consulting and IBM which will replace 29 different payroll systems and 38 different HR systems with a fully integrated system covering one million NHS staff.

The Department of Health says the move will save up to£400m by reducing administration and improving recruitment and retention. It will give the NHS a common language and data with which to manage recruitment and absenteeism, analyse skill gaps, 'recruit staff proactively and consider flexible working to improve morale and attract the best people'.

By late 2004 every NHS organisation will run Oracle's HR management system on IBM's latest 'e-servers'.

While the deal is being seen as having long-term beneficial effects on staff, a consortium insider said job losses were expected.

'There is the potential for some redundancies as the system will mean moving from staff having to manually input payroll and HR details to a fully computerised system. As it is being rolled out over two years it is hoped that redundancies can be kept to a minimum.'

A Unison spokesperson said:

'Our main concerns are for staff changes and jobs being lost in those areas - we are looking for protecting in terms of retraining, redeployment and protection from redundancy. We have got a joint forum looking at setting up a national negotiating committee which will talk with the DoH about implementation and potential effect on jobs.'

Testing the new system starts immediately at University Hospital Birmingham trust and the pilot will be extended to 16 other trusts across England and Wales for a further six months before it is extended across all NHS organisations.

NHS director of human resources Andrew Foster said the system was a 'fundamental building block for developing our most important asset - our staff - which in turn will realise more improved and effective patient care'.

'It will reduce the need for double handling of information allowing skilled staff to devote more of their time to manage services.'