Capita IT staff strike over pay as profits rise 10%

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Capita IT staff strike over pay as profits rise 10%

Karl Flinders

IT workers at Capita will strike on Friday 26 July 2013 in protest at a below-inflation pay rise as the supplier's profits increase 10%.

The IT services supplier has refused to return to the negotiating table with union Unite and members. Staff in its IT services – as well as at the company's life and pensions divisions – will down tools for 24 hours.

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The dispute relates to a recent pay proposal that means 90% of staff will get a below-inflation pay increase. A third of the staff will receive a 1.1% increase.

Unite said staff are unhappy about years of real-term pay cuts and increased pension contributions. Capita increased its profits by 10% in its last financial period. 

Unite national officer Dominic Hook said workers will take strike action and 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%,” said Hook. 

"We urge Capita to return to the negotiating table and recognise its workers' contribution to the success of the business."

There were separate strike ballots for Unite members at both divisions. Two-thirds of Unite members in the IT services division cast votes, with 85% choosing to strike. 

In the life and pensions division, 45% of members voted with 65% supporting a strike. The staff involved work in various Capita locations including Belfast, Birmingham, Bristol, Glasgow, Manchester and Reading

Customers that could be affected include Deutsche Bank, Prudential, Royal London, Met Life, Phoenix and Friends Life.

Capita said it is confident customers will not experience any problems. 

“We are disappointed that Unite is planning 24 hour industrial action in relation the pay review implemented in May and June 2013," said the company.

"Less than 10% of the workforce across the affected areas voted to strike, so we are confident that service delivery to clients will not be adversely affected.”

 

 


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