Fujitsu employees vote for industrial action over jobs, pay and pensions

2 November 2009

Members of Unite, the largest union in the UK, have voted to take industrial action on jobs, pay and pensions at the Fujitsu IT services company in the UK. There was a majority of 74% voting for strike action and 92% voting for industrial action short of a strike in the ballot, the results of which are announced today.

Unite senior reps in Fujitsu will meet today (Monday, 2nd November) to determine what action will take place. Some 4000 employees in the main defined benefit pension plan are being hit by the company's plans to close the scheme to future accrual. The company intends to force this through by dismissing employees after the end of the consultation period in November, and offering them employment on new contracts which are unchanged except in relation to pensions. The union estimates that the proposed pension scheme change would reduce the total pay package of each employee by typically around 20 per cent.

The company imposed a pay freeze on UK staff earlier this year just a week before it was due to take effect, withdrawing promised pay rises to employees. In late August, Fujitsu announced proposals for 1200 redundancies in the UK and has since put 6000 people at risk of redundancy, amounting to 50% of its UK workforce.

Peter Skyte, Unite national officer for IT and communications, said: “Unite members are asking why they should lose their jobs and tighten their belts when last year the company paid out about £150m to shareholders and around £1.6m to two directors as compensation for loss of office.

“Fujitsu remains a highly profitable company and our members are insisting that the company must treat them fairly and increase pay, provide decent pensions, and consult meaningfully to minimise job losses and avoid compulsory redundancy.”

Fujitsu Services continues to make substantial profits, with a £200m profit before taxation last year, while the parent company is cash rich, having raised over $900m from a share sale.

Announcing the latest results on 28 October, the Fujitsu President highlighted that for the first half of the year, the company beat its earnings target despite a very challenging business environment.

Fujitsu employs around 12,500 people in the UK. Fujitsu’s main sites are at Bracknell, Stevenage, Manchester, Crewe, Belfast, Staines, Basingstoke, Wakefield, Sheffield, Solihull, Slough, Lewes, Warrington, Cardiff, Bristol, Newcastle and London.

ENDS

For further information contact Peter Skyte on 07768 931302 or Ashraf Choudhury in the Unite Press Office on 020 7420 8914 or 07980 224761.

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