A NORTH East council is reassuring staff their jobs are safe after a private partner launched a review of its business – months after signing an outsourcing contract.

In August last year, Balfour Beatty signed a 10-year contract with North Tyneside Council and took on a number of business services for the authority including finance, procurement, revenues and benefits, ICT, customer services and human resources.

The company pledged to invest around £13m and help the council save £34m over the duration of the contract.

As part of the programme, around 440 council employees were transferred to the firm in January.

The Balfour Beatty Group has now announced it is carrying out a strategic review of all its businesses.

There has since been speculation that Balfour Beatty Workplace could be sold, although the firm has stressed that no such decision has been made.

However council chiefs have moved quickly to reassure staff that no jobs would be at risk and all workers transferred to Balfour Beatty were protected under the agreement.

In an internal monthly newsletter, Chief Executive Graham Haywood also informed employees that the authority had the right to terminate the contract without penalty if it had concerns.

He said: “There has been national press speculation that Balfour Beatty Workplace may be sold by Balfour Beatty Group. I met with the managing director yesterday, and he confirmed no such decision has been made. But Balfour Beatty Group are carrying out a strategic review of all their businesses.

“The council is in a strong position because we have a clause in the contract that any change of ownership can be reasonably objected to by the council and, if necessary, the council could terminate the contract without penalty.

“This gives the council control over this situation, and I have indicated that any change of ownership now, at such an early stage of the contract, would be unreasonable and the council would exercise the right to terminate.