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Capita faces storm over paltry pay increases

Capita faces storm over paltry pay increases

16 July 2013

Capita faces a storm as many of its financial services clients face disruption, after workers from its life and pensions and IT services divisions overwhelmingly voted in favour of industrial action in a dispute over pay.

The dispute centres on Capita's performance related pay policies and a decision by the company to impose a pay deal which would mean around 90 per cent of staff getting a pay increase which is less than inflation, with over a third of workers getting just 1.1 per cent.

Staff believe that Capita's pay system is neither fair nor transparent and the latest paltry pay increase follows many years of real terms pay cuts and increased pension contributions. Yet Capita's profits are up 10 per cent and the company has also increased its shareholders' dividends by 10 per cent.

The union will announce dates for action in the coming days.

Unite national officer Dominic Hook said:  "Workers from Capita have sent a clear message that the company's pay policy is not fit for purpose. It is unjustifiable to give most hardworking staff a real terms pay cut when profits are up by 10 per cent. Capita's clients now face the prospect of considerable disruption because of the company's failure to recognise its workers' contribution.

"We urge the company to return to the negotiating table or Capita and many of its financial services clients will face considerable disruption."

Unite held two separate ballots at Capita life and pensions and Capita IT services;

Workers at the life and pensions division voted by 62 per cent for strike action and 78 per cent for action short of a strike on a turnout of 45 per cent.

Workers at the IT services division voted by 84 per cent for strike action and 94 per cent for action short of a strike on a turnout of 65 per cent.

The following clients could be hit if industrial action goes ahead: Deutsche Bank (Abbey Life), Prudential, Royal London, Met Life, Phoenix and Friends Life.

ENDS

Contact Ciaran Naidoo on 07768 931 315 

  • Unite is Britain and Ireland’s largest trade union with 1.4 million members working across all sectors of the economy. The general secretary is Len McCluskey.