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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

Reading & Craigforth June Newsletter Update

READING & CRAIGFORTH UPDATE

In recent months Capita have continued to look at migrating work from Reading & Craigforth to Mumbai. These ‘feasibility studies’ are currently looking at the work of around 400 employees in Reading & Craigforth. Unite has ongoing concerns about the amount of work moving to Mumbai and the impact this has our members in Reading & Craigforth. We also have growing concerns about the potential impact on customers, certainly in the longer term, if this complex work does migrate. We are raising these issues with Capita but also require members support to do this.

We have informed Capita that these, in our opinion, will be a very difficult migrations and that Mumbai may struggle to deal with this more complex work.

Capita will continue to consult with Unite about these migrations. Our main aims through this process will be to do everything possible to avoid compulsory job losses and to make sure the employees who are impacted are treated with respect and fairness at all times. Unite will fight compulsory job losses with our members support/permission and we will defend our members’ rights. Unite now have an agreed set of principles with Capita, in Reading, which mean that employees should be able to express a preference and be redeployed into suitable alternative roles. So far this has been reasonably successful – for the most recent migration all employees were redeployed. However Unite will strongly challenge further migrations that lead to job losses.

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 24, 2009

Pay 2008 for Reading & Craigforth

Pay negotiations for this year are now complete in Reading and Craigforth and Unite have now balloted its members.

To recap, the proposal put to members was:

That all employees with a rating of 1, 2 or 3 will be awarded a 1.5% pay increase (with the exception of those earning a basic salary of over £60,000).

There will be a bonus

Capita will start to look at pay anomalies (in particular for lower paid employees)

The ballot results are as follows:

Accept = 89%

Reject = 11%

Turn out = 78%

Therefore the proposal has been accepted by our members and this has been communicated to Capita.

For Unite it is very important that we have a good turn out so that we know we are representing the majority of members. The ballot was open for 1 week (due to time constraints) and we are really pleased with the turn out of 78%.

Unite asked members for feedback who rejected the pay deal and we have been asked a number of questions. We have responded to each member individually, however if you haven’t had a response to your question, please let us know.

The key questions and responses are listed below.

Q. Why is the pay pot so low (1.5%) when Capita has had a very successful 2008?

A. Unite were disappointed at the 1.5% pay pot because Capita did have had a successful 2008. The 1.5% is low, however the country is now entering a recession and we have to be realistic. In January 2009 the Retail Price Index (RPI) fell to 0.1%. RPI is a key indicator used by trade unions and companies when negotiating pay. We are without doubt entering difficult and exceptional times and as such we feel that it is not the right time or climate to go into a dispute with Capita over the pay pot. Our key focus, in the current climate, has to be to protect jobs and other key terms and conditions. If the recession doesn’t have an impact on Capita (or its clients) and Capita continues to perform well, we do expect a much higher pay pot in future years.

For information, in recent weeks some non unionised finance sector companies have imposed pay freezes on their employees.

Q. Why did Unite push for and agree to an across the board pay rise?

A. Although we didn’t agree with the 1.5% pay pot, we did agree on the distribution. The distribution is very important and is almost as important as the pay pot. In other finance sector companies some pay pots have been higher (for example 2.5%), however due to the distribution being based mainly on market pay, the majority of employees, were not awarded a pay rise.

Given the exceptional times we face Unite wanted to avoid this. We have always argued that cost of living pay rises should be across the board and not based on market data. We have also argued previously that pay rises should be above RPI. Our pay claim this year asked Capita for an across the board pay rise. Capita have listened to our points.

Q. Surely pay rises should be based on performance?
A. Yes and no. Unite do not have an issue with performance related pay. Our position is that all employees who are performing should get a pay rise (for example based on the cost of living). Any additional money should be provided so that it can be distributed based on employee’s rating and performance. With only 1.5% available, we didn’t feel this would be possible. To base any award on performance would mean no pay rise (or very little) for the majority of employees. For performance pay to work effectively there needs to be a higher pay pot.

Capita recognised that the UK and global economy are facing exceptional times and that a 1.5% pot is low. We expect in future years that they will look to reward performance as this is their normal pay position.

Q. I didn’t get the chance to vote in ballot – I’m not a member and although I do get some communications I didn’t get this one?

A. We can only ballot members. Only members get a say on collective bargaining issues like pay. Unite have a collective bargaining agreement with Capita (for the areas/locations where we have recognition). This is important as it allows Unite to enter into talks and negotiate on behalf of employees on key issues and negotiations. Unite will ballot its members so that ultimately it is the members that have the final say.

If you are a member and didn’t get the ballot please contact us so we can make sure you are on future distribution lists.

January 29, 2009

Capita Look at Offshoring More UK Jobs

Today Monday 26th January Capita have announced that they are looking at the feasibility of offshoring more UK Work (from Reading) to Mumbai

As you will know Unite has ongoing concerns about the amount of work moving to Mumbai and the impact this has on all employees in Reading. We also have growing concerns about the potential impact on customers, certainly in the longer term, if the more complex work migrates.

Firstly we must make it clear that what Capita are proposing and have communicated is a feasibility study to see what work can or can't migrate. Clearly they believe some work can migrate but until that feasibility study is complete they won?t know the exact work or numbers.

The following work/activity will be looked at:

OB/PP/RP/Prubond/New World and RPPAP Technicians
Pensions Guarantees Calcs and Servicing
PP Unit linking
Special Products (IB, Prutrust, Loans, Prufund, Trusts and Titles)

Some of this is more specialist work and we are surprised that Capita are looking at this work. We have informed Capita that if this goes ahead it will, in our opinion, be a very difficult migration and that Mumbai may struggle to deal with such complex work. If there are any positives from the approach taken by Capita it is that they are talking to employees at the earliest stage and that employees who currently do the work should be able to have input into the feasibility study itself.

This particular feasibility study will be looking at the work of around 100 people who are currently employed in Reading. Also previously announced feasibility studies are still ongoing and we are concerned about the impact on our members should Capita decide that a large amount of work can move.

Capita have also stated that if any work does move it may take some years to fully complete the migrations. Given the UK is entering a recession and with unemployment increasing Unite is strongly of the view that the offshoring of UK jobs is morally wrong in the current economic climate.

As you may know at the point of transfer to Capita, Unite was very clear that the principles behind our security of employment must transfer. We are pleased that Capita agreed to this. These principles mean that should there be a need for redundancies then Capita should seek volunteers first and the key to treating employees with respect is to understand what all employees want (through preferences) and to allow those that want to leave to do so
whilst securing roles for employees who want to stay. However given the potential numbers involved we believe this could become very difficult. Capita also state that although they allow employees to express a preference this does not mean a guarantee of redundancy as they may need to retain key skills.

Unite have made it clear to Capita that our policy is zero tolerance of compulsory redundancies and that Unite will give full backing to members wishing to defend their jobs. Capita will continue to consult with Unite about this migration, at this stage these are feasibility studies only and it may be that Capita decide that the majority of work cannot move.

Unite can support members through this process - collectively as outlined above and individually by supporting members through the process and through redeployment into a suitable alternative role or alternative role.

We will be holding meetings in Reading over the coming weeks and we would encourage all employees to attend one of these meetings.

However if you have any questions in the meantime please contact one of your local Unite workplace reps below.

Gary Fostekew 75-56745
Graeme Hoskin 75-56708
Hubert Bowers 73-3023
Mark Trinder 73-3515
Pam Buckett 75-56705
Richard Medlycott 73-3037

.

November 4, 2008

Migrations/Offshoring announcement 3rd Nov

Today Capita have made a number of announcements/updates on migrations in Reading and Craigforth.

As you will know, Unite has ongoing concerns about the amount of work moving to Mumbai and the impact this has on employees in Reading & Craigforth. We also have growing concerns about possible impacts on customers as a result of previous migrations and in the longer term if more complex work migrates.

So what have Capita announced today?
In Reading

An update on the AVC Cash migration previously announced. Capita are
migrating 35 roles, with 25 permanent staff being impacted. Of these,
5 will undertake the AVCs work remaining in the UK and 20 will be
redeployed.

That potentially 33-34 Servicing South roles will move to Mumbai
between Q3 2009 and Q1 2010.

In Craigforth
A new feasibility study will take place on Life and Pensions to see
what, if any, additional work can be migrated.

An update on Annuities pension payments stating that the majority
this work can migrate with 11 roles being impacted.

FRIS/IPM ? The feasibility study has shown that this work should stay
in Craigforth for now.

Ongoing consultation
The new figures for Servicing South are lower than those originally announced, partly because Capita have agreed (for now) that all technical support roles should remain in the UK.

As well as trying to protect jobs and job security, Unite has raised some concerns about some of the previous migrations and the impact these have had on customers and employees. Capita have recognised some of these issues and have put new processes and checks in place. As an example Capita have now introduced an ?operational warranty period? which checks that the
migration has worked as expected.

Capita will continue to consult with Unite about the migrations. Our main aims through this process will be to do everything possible to avoid compulsory job losses and to make sure the employees who are impacted are treated with respect and fairness at all times. Unite will fight compulsory job losses, with our members support / permission, and we will defend our
members rights.

As you may know, at the point of transfer to Capita, Unite was very clear that the principles behind our security of employment must transfer. We are pleased that Capita agreed to this. These principles mean that should there be a need for redundancies then Capita should first seek alternative options to compulsory job losses. This includes finding suitable alternative work for employees.

With good planning this is possible. For example because Capita has not been recruiting permanent employees externally (and has been backfilling natural attrition with temps) when the AVCs cash work does migrate all impacted employees will be found suitable alternative roles within Capita Customer Services Reading. We hope this will happen for the other
migrations in Reading and Craigforth. Clearly if suitable roles cannot be found then Capita should seek volunteers rather than resort to compulsory redundancies. Capita state that in these circumstances they will always allow employees to express a preference but this does not offer a guarantee of redundancy as Capita do need to retain key sills and knowledge. Unite
will fully support its members both collectively and on an individual basis and we have found that through various methods that we can avoid compulsory job losses.

Your Unite reps are here to support you during this process - collectively as outlined above and individually by supporting members through the process and through redeployment into a suitable alternative role.

We will be holding a members meeting in Reading on Wednesday 5th November.
This will take place in the Restaurant between 3.30pm and 5pm. We encourage all Capita employees to attend as we will be discussing the above migrations plus any other issues/concerns you may have.

For members in Craigforth, as we do not have recognition (which means we
don't have permission to do so), we cannot hold members meetings on the site. However we can hold members? meetings off site. Please let us know if you like us to arrange this. We can, and will, also meet individual members on site if you have a concern or work related issue. Craigforth also has an information and consultation body called 'your voice' which is being
consulted.

If you have any questions in the meantime please contact one of your local
Unite workplace reps below.

Gary Fostekew 75-56745
Graeme Hoskin 75-56708
Hubert Bowers 73-3023
Mark Sherwood 73-6062
Mark Trinder 73-3515
Pam Buckett 75-56705
Richard Medlycott 73-3037

Thanks

CHRIS GRAY
UNITE SENIOR REPRESENTATIVE