The union Unite says it will fight the transfer of around 1,100 staff into a new 'in house' company created by East Kent Hospitals Trust.

It has branded the move "a wolf in sheep's clothing" and claims it could lead to their pay and conditions being eroded.

The transfer, announced today and due to be completed in August, involves 850 Serco employees in cleaning, catering and portering and 250 NHS staff working in estates, procurement and facilities.

The trust, which runs the hospital sites in Canterbury, Thanet, Ashford, Dover and Folkestone says it will be a new not-for-profit social enterprise and insists there will be no job losses all staff affected will have their current employment terms and conditions legally maintained under TUPE regulations.

Chief executive Susan Acott said: “Many of the staff who are transferring from Serco used to work directly for East Kent Hospitals so it’s great that they will be more closely connected to the trust again.

"Our aim is to have an organisation with a social purpose that is rooted in its local community and gives stability.

"The 25-year contract for east Kent will provide this stability for these crucial services.”

Transferring services into the NHS wholly-owned company will allow support services to remain in the NHS family, says the trust, and enable the teams currently employed by different organisations to work together more efficiently.

They will have the freedom to run their own budgets, make their own decisions to improve standards based on local need, and drive up standards for east Kent patients, it adds.

Savings the company makes will be invested in frontline clinical services, the social enterprise and its staff.

The trust has confirmed that the current director of estates Finn Murray is to head up the new company as managing director.

It says it is discussing the transfer with numerous representatives but would not comment on Unite's claims that Mr Murray has refused to commit to guaranteeing continued recognition with it and other unions in the new private company.

Regional officer Kathy Walters said: “This plan is a wolf in sheep’s clothing and the public needs to know that this is the thin edge of the wedge towards privatisation, with the prime aim of cutting costs and eroding NHS workers’ pay, terms and conditions.

“Rather than bringing Serco workers back in-house, East Kent Hospital bosses are seeking to avoid paying nationally agreed NHS pay rates by setting up an arms-length company and transferring long-serving direct employees into it.

“It is an underhand way to treat hospital staff who play an invaluable role in delivering the best possible patient care to the communities of East Kent."

Unite is working with Unison and the GMB unions on the transfer plans in the hope of stopping it.

She added: "Unite has successfully campaigned to stop the outsourcing of estates and other staff in the past and we fully intend to do so again.

“In the coming days we will be working with our partner trade unions to consult with members, patient groups and concerned members of the public on taking forward a campaign to stop what is effectively privatisation via the back door.”