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Unite challenges Capita CEO on pensions

Unite challenges Capita CEO on pensions destruction

13 June 2017

Unite, the union representing staff at Capita, will today (Tuesday 13 June) challenge Capita on major changes to the pensions of staff at the annual shareholders meeting.

Attending the Capita AGM in London, Unite will ask the CEO and the board: “How can the board justify a highly profitable company such as Capita undermining the morale and loyalty of hard working staff by proposing to remove their defined benefit pension? Is this not risking further industrial unrest and reputational damage following the pay dispute last year?”

Capita last week informed its workforce of significant changes to the defined benefit pension arrangement. This in effect will mean that staff will lose large a large element of their pension benefits. The workforce has reacted with anger to this brutal proposal.

Dominic Hook, Unite national officer, said: “The disgraceful plans by Capita to slash the deferred pay that hardworking staff will get in retirement is utterly unacceptable. 

“Unite is today asking the Capita CEO and board 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? This move risks further industrial unrest and reputational damage which Capita simply cannot afford following the pay dispute last year which resulted in strike action.

“Capita’s own figures show that staff could lose as much as £8,000 per year in deferred pay. There is no justification for highly profitable Capita to treat its workforce in this manner.”

Unite is now consulting with its members about these major pensions changes. The union is calling on Capita to withdraw these unacceptable proposals and reassure its staff that their pensions are safe.

ENDS

For further information contact Saba Edwards on: 07768 693 953. 

Notes to editors:

  • 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.