The company has been ordered to explain itself by the Cabinet Office after pledging not to squeeze suppliers to deliver some of the £800m of savings the Government is demanding from the industry.
Despite the assurance, Serco – which runs prisons, nuclear facilities and ports for the Coalition – has demanded a blanket 2.5pc cash rebate from suppliers and threatened them with the loss of future contracts.
Well, for a start, it\’s not a cash rebate, it\’s a credit note to be applied against future invoices.
But what\’s got me confused is why is everyone complaining about this, insisting that Serco are some form of super bastards?
What the hell does anyone think a prime contractor is going to do to subcontractors when there\’s pressure to reduce costs?