Capita workers take strike action over paltry pay

26 July 2013

Unite Press release (photo from the Capita picket line in Bristol).Michael6


Capita’s financial services clients face disruption on Friday 26 July as workers from its life and pensions and IT services divisions intend to take 24 hour strike action in a dispute over pay.


Despite the imminent disruption to services, Capita refuses to take this dispute seriously and is yet to return to the negotiating table. 


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 below 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 dividends to shareholders by 10 per cent.


Unite national officer Dominic Hook said: “Workers from Capita will take strike action this Friday and this will cause significant disruption to the company’s clients. It is time for Capita to take this dispute seriously if it wants to avoid this imminent strike. Hardworking staff are getting a real terms pay cut when profits are up by 10 per cent. 


“We urge Capita to return to the negotiating table and recognise its workers’ contribution to the success of the business.”


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 on a turnout of 45 per cent.
  • Workers at the IT services division voted by 84 per cent for strike action 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.

Staff who were balloted are spread across the UK based at the following locations; Belfast, Bournemouth, Birmingham, Bristol, Craigforth, Glasgow, Manchester and Reading.

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