Staff working at Capita will today (Monday 14 August) start voting in a strike ballot on major changes to the pensions of staff.
Unite, the union representing the workforce at Capita, is conducting an industrial action ballot following the proposal to close the current defined benefit scheme. In July Capita informed its employees of significant changes to the pension arrangements. Staff in the scheme will suffer a massive cut in their retirement income as a result of the proposals.
Dominic Hook, Unite national officer, said: “The disgraceful plans by Capita to slash the deferred pay that staff will get in retirement is utterly unacceptable. Capita’s pension proposals will have far reaching consequences for the retirement of many Unite members. Some staff will lose a shocking 70 per cent of their retirement income.
“Capita has once again put the interests of shareholders before those of their staff. Unite members want to know how a highly profitable company such as Capita can undermine the morale and loyalty of hard working staff by proposing to remove their defined benefit pension? There is no justification for highly profitable Capita to treat its workforce in this manner.
“Capita must urgently rethink these pensions proposals in order to prevent industrial action.”
If Capita is able to implement this proposal, then Unite has a real concern that it will open the door to further attacks on the other company pension arrangements. The Capita sites where Unite members are impacted are:
- Birmingham (two locations)
Unite members who are affected are employed by Capita Life & Pensions Regulated Services Ltd, there are also some employed in Capita IT Services Ltd. The following Capita contracts will be affected by the industrial action:
- Royal London CIS
- Phoenix / Royal London (Birmingham)
- Friends Life
- Specialist Services (all sites)
- IT Programmes /projects (all sites)
For further information contact Saba Edwards on 07768 693 953.
- Unite is Britain and Ireland’s largest trade union with over 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey