Agreement Reached Over O2 Outsourcing to Capita

An eleventh hour deal has been reached over plans to outsource thousands of jobs from Telefonica o2 to Capita. The agreement – which includes far better protection for pay, pensions and terms and conditions – was reached after intense negotiations sparked by the union’s strike ballot. The ballot has now been withdrawn.

Andy Kerr, CWU deputy general secretary, said: “We don’t agree with the principle of outsourcing jobs to Capita, and clearly neither do many o2 workers as 1,000 have opted to leave rather than work for Capita. The situation was made worse by the way in which o2 behaved, with rumours of outsourcing rife and mixed messages from the company. One thing we’ve never lost sight of is trying to get the best possible outcome for our members.

“It was the right decision to hold a strike ballot. We were forced into it because of the unusually short 41 day consultation period – completely inadequate given that this is one of the biggest outsourcing deals in UK history. The ballot definitely focused the minds of Capita and o2 and negotiations intensified following our decision to ballot and meant we were able to achieve an agreement yesterday.

“We’ve secured far better protections on jobs, pay, pensions and terms and conditions for our members transferring to Capita than were originally on offer. People will not see their salaries suffer, they’ll still be eligible for promotion and pay increases as they would have at o2, their pensions are protected and they will keep a local job.

“This gives us greater confidence for our members. We expect Capita to honour this agreement and the protection of these staff. We will be there every step of the way pushing for the best possible working conditions for our members.”

Meetings with staff will take place on-site in Bury, Glasgow, Leeds and Preston Brook over the next week to explain the agreement, consult members and get feedback.

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David Dungay

Editor - Comms Business Magazine

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