Life and Pensions workers at Capita have voted by 88 per cent to reject a 'derisory' pay offer and have today served notice of a final ballot for strike action said Unite, the trade union for finance workers.
In an independent ballot conducted by the Electoral Reform Services, Unite members across Capita voted by 88.4 per cent to reject the pay proposal on a turnout of 72 per cent.
The dispute follows a low pay offer which would have resulted in a real terms pay cut for 75 per cent of staff. Capita had proposed a 1.5 per cent 'pay pot' which would have been distributed to staff through a flawed and opaque performance-related grading system, which only serves to divorce pay increases from the cost of living.
In contrast, Capita’s chief executive Andy Parker’s salary has increased by nine per cent to £600,000. The company's finance director has been awarded a 16 per cent pay rise, while other executive directors have received bumper pay increases of 3.4 per cent.
Unite has communicated the result to Capita's management and will today serve notice of a industrial ballot for strike action. In 2013 Capita members took successful strike action over pay following a 65 per cent rejection of the proposed deal.
Dominic Hook, Unite national officer for finance, said:
“This vote is an unprecedented rejection of Capita’s derisory offer and a rejection of a flawed 'performance' system that only serves to hold pay below the cost of living. It is an insult that the board can award Andy Parker a nine per cent pay rise on top of his very generous bonus, while handing down a real terms pay cut to staff.
"Due to their failure to return to the negotiating table, Unite has today informed the company that we are launching a ballot for strike action. There is still time for Capita to return to the table with a sensible offer reflecting the hard work of our members which has made the company so profitable."
For more information contact: Ben Norman on firstname.lastname@example.org or 07525 590 075. Alternatively contact the Unite press team on 020 3371 2065.
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.