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July 9, 2009

Capita Staff On Strike Today

CAPITA STAFF ON STRIKE IN BOTHWELL STREET TODAY

FRIDAY 10 JULY "I'M BACKING BOTHWELL STREET” SUPPORT DAY

Unite members working at Capita Bothwell Street will be taking strike action today (Friday 10th July) in a dispute over pay.

Life and Pensions staff can show support for striking colleagues by wearing the “I’m Backing Bothwell Street“ stickers in work today

Capita has failed to enter into negotiations with staff representatives since an initial offer of a 1.5% pay rise (with no bonus payment).

Unite members are angry that despite making massive profits Capita will not give staff a decent
pay rise.

Workers feel that they have been left with no alternative but to take strike action.

Capita have no financial excuse not to give their staff a fair pay rise:

• An 18% increase in Capita operating profit – up from £271 million to £320 million;

• A 70% increase in operating profit for the division where Bothwell Street staff work – up from
£33 million to £56 million;

• No bonus for workers but big bonuses in the boardroom.

Staff are angry that their contribution to the 70% increase in divisional profits is not been fairly recognised. The situation is further exacerbated by the fact that historically Capita has settled with a higher pay pot in recognition of the fact that members do not receive bonus payments but are refusing to acknowledge the position this year.

www.uniteincapita.org
www.unitetheunion.com

July 4, 2009

Why are Capita Staff On Strike

WHY ARE CAPITA STAFF ON STRIKE?

Unite members working at Capita, Bothwell Street are on strike in a dispute over pay.

Their employer, Capita has failed to enter into negotiations with staff representatives since an initial offer of a 1.5% pay rise.

Unite members are angry that despite making massive profits Capita will not give staff a decent pay rise.

Workers feel that they have been left with no alternative but to take strike action.

Capita have no financial excuse not to give their staff a fair pay rise:

• An 18% increase in Capita operating profit – up from £271 million to £320 million;

• A 70% increase in operating profit for the division where Bothwell Street staff
work – up from £33 million to £56 million;

• No bonus for workers but big bonuses in the boardroom.

Staff are angry that their contribution to the 70% increase in divisional profits have not been fairly recognised.

www.uniteincapita.org
www.unitetheunion.com

PLEASE SUPPORT THE STRIKE

June 4, 2009

June Newsletter Belfast Update

BELFAST UPDATE

You may have heard earlier this year that the Capita to Client (C2C) sales contract in Belfast was not renewed by Prudential. This decision could potentially put over 110 sales jobs in Belfast at risk.

Unite was shocked at the decision made by Prudential as we understand that in 2008 C2C achieved all of the sales targets set and agreed by Prudential and Capita. Members in C2C have worked very hard to achieve these results and Capita recognised this. This is one of the problems of working for an outsourcing company as ultimately Capita was not the final decision maker.

We believed that Capita has done all it could to continue with this contract however we are still at a loss to understand why the Prudential has made such a decision.

Since the decision was made Unite has been working closely with Capita to agree a way forward. Through this work we have seen a number of employees successfully relocate. Unite and Capita have also agreed that everyone affected by the decision not to renew the sales contract will have a role until 1 October 2009 at the earliest, even if an individual's work migrates before that date. Capita and Unite's first preference is obviously that all staff affected by this decision will be redeployed to suitable alternative roles and Capita is currently working on many opportunities to try and make this possible.

In the meantime please support and show solidarity for you colleagues in Belfast. For further information and future updates please visit www.uniteincapita.org

Capita Newsletter June 2009

A NEWSLETTER FOR UNITE MEMBERS IN CAPITA

PAY UPDATE
Most Capita sites in Capita Life &Pension (L&P) have now agreed pay increases and bonus amounts. However we still have two contracts where our members have rejected the offers put forward by Capita. Here is the up to date news from each contract/site.

 Belfast (Prudential) – A 1.5% pay increase paid across the board (so not based on market or performance) plus a bonus payment which is on target. 91% of members have accepted this offer.

 Bournemouth (Deutsche Bank) – A 1.5% pay increase, a ballot of the membership has taken and has been agreed by the membership.

 Glasgow & Wythall (Pearl) – Again it was a 1.5% pot but distributed partly based on performance. An on target bonus was also paid.

 Glasgow (Hartshead) – Agreement has not been reached in Glasgow Hartshead and Unite are some way from being able to reach agreement. The main issue is the fact that the offer from Capita is 1.5% with no bonus. Talks are ongoing but members have not ruled out taking action if necessary.

 Manchester (C.I.S) - After several meetings with management the proposal on pay distribution was £550 for managers (capped for those earning above £40,000), £440 for staff who had exceeded, £275 for achieved and £220 for progressing. However most worryingly there was no pay rise what so ever for any member of staff paid at 110% or above of the market rate. The market rate was also not increased. As a result of this around 31% of Staff will not get a pay increase. The offer was put to Ballot and was rejected by 89% of members. Further talks are now taking place.

 Reading (Prudential) A 1.5% pay increase across the board (so not based on market of performance) plus a bonus payment which was on target and was distributed based on performance. 89% of members accepted the deal on offer.

FINANCE SECTOR BRIEFING FOR THE UK GOVERNMENT

Unite has been lobbying the government about the mass job losses hitting the Finance Sector. This isn’t just about the big banks although clearly the banking sector is being hit hard. Unite is concerned that other Companies will jump on the bandwagon and will make redundancies in the UK even though they continue to make very good profits. This could include some of the UK Insurance Companies (we have already seen big announcements in Aviva and Legal and General) and also Capita.

For Capita - Unite produced the following report for the Government.

In 2009 Capita Life and Pensions has continued to rapidly expand into UK Financial Services. This year we have already seen two big new contract announcements with AXA and Abbey Life work being outsourced to Capita. This means around another 1500 finance sector workers will move into Capita. Capita also took over the administration on Prudential life and pension policies during 2008 with nearly 1700 UK workers moving from Prudential to Capita. The Prudential contract also gave Capita an increased presence in Mumbai with around 4000 employees in India now working for Capita. Most employees TUPE into Capita and in the main their key terms and conditions are protected. Capita L&P now has contracts with Pearl/Resolution Life, Zurich, Prudential, Coop Insurance Services, Abbey Life and shortly AXA employing around 12000 staff in the UK and around 4000 outside of the UK.

The Capita business model involves winning such contracts and reducing costs either through IT system improvements or through the offshoring of work. There has already been one site closure in Wythall resulting in around 500 job losses. Capita are currently undertaking a feasibility study to see if further work can be offshored from Reading & Stirling this could result in compulsory job losses which Unite will challenge. So far around 300 job roles are in scope for this feasibility study. In Belfast since Capita took over the contract in 2006 the headcount has reduced from around 500 to 250.

There is a view that if some the complex work is moved offshore this could be to the detriment of customers. The skills, knowledge and experience of workers dealing with the more complex life and pensions products cannot be easily replicated as it can take years to build up such knowledge. UK workers in the Life and pensions industry are just not worried about the impact on their jobs they are also genuinely concerned about the impact on customers. Unite are concerned that cutting costs and making ever increasing profits will ultimately be to the detriment of customers and service. Clearly our main aim is to try to protect jobs and members key terms and conditions.

March 5, 2009

Press Release from Unite re Belfast

Please see below a press statement from Unite which was issued last week re the C2C contract

Prudential betrays Belfast workers

Unite the union has today slammed Prudential for a “massive betrayal’ of workers in Belfast after it was revealed that they would not renew their contract with Capita. The 100 Capita staff in Belfast risk redundancy as a result of this decision by Prudential.

Daryl Williams the Unite officer for Capita said “Unite is shocked that the contract with Capita has not been renewed by Prudential. This is a massive betrayal of the 100 hard-working staff. There is no evidence to suggest that this sales work can be done better or more economically elsewhere.

“The Prudential must now come to Unite with clarity over their restructuring proposals and give us firm detail on plans and jobs.

“The union is convinced that the decision not to renew the contract makes no economic sense. Perhaps Prudential shareholders to question why, in the current economic climate, is Prudential making decisions that simply don’t add up.”

Unite has serious doubts about the decision since Capita have produced a healthy sales profit for Prudential and hit their sales targets in 2008. According to the figures, seen by Unite, the centre produced annual policy revenue of over £60million in 2008.

Unite is now very concerned that the Prudential will force the closure of the sales centre in Belfast with the loss of around 100 jobs and move the work to one of its other UK sites. The loss of this contract could also bring into question the longer term future for the whole site in Belfast.

Unite also understand that Prudential received government funding to set up and maintain jobs in Belfast.

- Ends -

Belfast - Unite stunned at the Prudential decision

You may have heard today that the Capita to Client (C2C) sales contract in Belfast has not been renewed by Prudential. Unite were informed, by Capita, of the likelihood of this a few days ago however we still hoped that Capita might be able to persuade Prudential that the decision is fundamentally wrong.

This decision could potentially put over 110 sales jobs in Belfast at risk.

Our understanding is that in 2008 C2C achieved all of the sales targets set and agreed by Prudential and Capita. Members in C2C have worked very hard to achieve these results and we are stunned that Prudential would make such a decision.

Capita are clearly also stunned after all it was only a few months ago when Phil Braithwaite himself who stood up in front employees in Belfast to say this contract would not be lost. However this is clearly one problem of working for an outsourcing company as ultimately Capita is not the final decision maker.

We believe that Capita has done all it can to continue with this contract however we are still at a loss to understand why the Prudential has made such a decision.

Economically is doesn’t make sense unless Prudential are going to TUPE employees back in and retain the work and workers in Belfast. Our understanding at this stage is that this is not their intention. We do not believe that this work can be done better or more economically elsewhere in the UK - certainly when you also factor in the potential costs of redundancy, training along with the risk of a loss of sales.

Even if this is not an economic decision but one of the Prudential wanting to have more direct control over its sales it would still make sense to keep this in Belfast. In Belfast we have a fully trained workforce which has proved beyond any doubt that they can do the work successfully.

So what happens next? Capita are talking to Unite and we will continue to consult with them. We are hopeful that the contract will continue into 2009. However we still need to secure a longer term future not only for C2C but for the whole Belfast site.

We are taking a strong line with Prudential as we feel this decision is wrong both morally and economically. During the current economic climate it would be disgraceful to make redundant 110 experienced sales people who have worked hard and achieved all the targets they have been set. Unite will give full backing to members wishing to defend their jobs. We are therefore urging Capita and Prudential to jointly talk to Unite over the coming weeks.

In the meantime please support and show solidarity for you colleagues in Belfast. For further information and future updates please visit www.uniteincapita.org

October 10, 2008

A case of stabilise and then hopefully expand

We are pleased that, for the majority of members, the news delivered by Phil Braithwaite, on Friday 10th Oct, appears to be positive.

Unite senior reps and your local reps have met with Phil on two occasions in the last month to express our concerns about the Belfast operation and site. We are pleased that Capita have listened and have now been very honest with employees about the Belfast operation. It clearly wasn't making sense (either morally or in terms of business) to leave employees feeling left at risk and in the dark.

The meeting we had with Capita on the Friday morning was positive for a number of reasons

Capita are now being honest about the importance of the C2C contract.

Capita are stating that the contract is close to being signed and when this happened it will mean a specialist sales area with Capita Life & Pensions based in Belfast.

The signing of the contract will also mean that the majority of Customers Services work will remain in Belfast.

Clearly there was one potential negative around the Salisbury work but Capita are hopeful that this will either remain or new work can be brought in the replace it. Even if this work does go at the end of year we have agreed with Capita that it would be the roles at risk and we would explore ways of avoiding compulsory redundancies. Capita and Unite have therefore agreed to meet again at the end of November and it has also been agreed that no employees will be put at risk until the situation is fully understood and these talks have happened.

It is also a great shame that the Thames contract was lost although clearly there was perhaps little Capita could do about this after the Prudential pulled the project completely. The stabilisation of work and the work force has come too late for some employees and clearly this may not sit well with you and it doesn't with your union. However after union meetings with the majority of members affected it was agreed to allow Capita time to try to secure the C2C contract. We applaud the members who made this decision, as it is them who are directly impacted by the loss of the Thames contract and these particular job losses.

Capita have stated that they and the Prudential acknowledge the professionalism and commitment of Belfast employees. Services levels have continued to be delivered despite the great uncertainty and C2C sales performance has grown strongly. You have shown Capita that you can deliver for them and now it is time for them to deliver for you. So Capita do now need to secure the C2C contract and secure the current work. Then hopefully together Capita and the dedicated work force in Belfast can attract new work and new contracts and grow.

Unite will continue to talk to Capita through this delicate period. We will continue to press home how hard working and professional you all are. We are sure that if we all continue to work together and Capita shows you the dedication you have shown then the long term future will be much brighter. Please also continue to support Unite and your local work place reps.

We shall also be shortly discussing pay and bonus with Capita so if you are not a member please join. The stronger our membership the stronger our collective voice.