Glasgow City Council is to turn one of its biggest departments into a Limited Liability Partnership (LLP).
The Council's Executive Committee has approved a business plan to turn Direct and Care Services, which has 8,000 staff and provides home care, cleaning, janitorial services and catering, into an arms length company.
The business plan, which shows the LLP making a profit in its first year, was produced after a review of Significant Trading Operations in Direct and Care Services, covering care and community services, and facilities services.
Leader of Glasgow City Council, Cllr Steven Purcell, said: "Our review was quite clear - if we were to protect the jobs of our employees and ensure continuation of services, then doing nothing was not an option.
"If no action was taken by the Council it's likely that we may have had to put these services out to competition, and winning contracts would be very difficult.
"Therefore, the choice facing the Council was not the status quo on one hand and a recovery plan on the other, rather than privatisation on one hand and a recovery plan on the other."
The Council already operates several LLPs including City Building (Glasgow) LLP, formerly the Building Services department.
Source: Glasgow City Council news release
