Home repairs: Jobs saved in housing contract takeover
Liberal Democrat members went against officers' recommendations in awarding the contract to the most expensive bidder.
Trade unionists, who organised a vigil yesterday outside the city's Guildhall, claimed it was "a victory for solidarity and trade union pressure".
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Hide AdLabour expressed surprise, saying officers wanted the council's other two contractors to share the work between them, a move which would have saved 4.3m.
However, Lib Dem portfolio holder Coun Mike Ross said the cheapest option wasn't necessarily the best.
He said: "This option continues the arrangement as it was before, with effectively the same people doing the work with different ownership."
Mike Adamson, Hull City Unison branch secretary, said they would continue to fight for five ex-Connaught staff, all women, who had been sacked when the company went into administration. He added: "This is a victory for solidarity and trade union pressure and I am pleased for everyone involved."