LTB 357/24 – Capita Tesco Mobile Contract – Work Moving To South Africa
No. 357/2024
13th November 2024
Dear Colleague
Capita Tesco Mobile Contract – Work Moving To South Africa
Capita has informed the CWU that they have renewed their contract with Tesco Mobile for a further three years and in doing so the contract will move to being delivered from South Africa.
This decision puts approximately 231 operational and shared service employees who support Tesco mobile in the UK at risk of redundancy.
This is an incredibly disappointing outcome of the contract renewal and brings a huge amount of uncertainty and anxiety for our members carrying out this work. The CWU will be responding to Capita’s decision and will do everything it can to protect members’ jobs and ensure management commit to securing alternative roles where possible.
Capita has proposed that the work will fully transition to South Africa on 28th April 2025, with the proposed exit date in the UK being 27th April 2025.
In the absence of any alternative opportunities within Capita or changes identified during consultation, redundancies will potentially take place. Individual consultation meetings and collective consultation will commence this week, lasting for at least 45 days and anticipated to end on 28 December 2024. Formal notice of redundancy will be given to those eligible and unable to secure alternative work.
Concerns Team – Transfer In-House
Separately, the activities currently delivered by Capita Tesco Mobile members in the ‘Concerns Team’ will transfer in-house into Tesco Mobile in the UK. The total number of employees within the ‘Concerns Team’ is 22. TUPE consultation will take place and we will keep affected members up to date on those discussions.
The announcement reiterates the vulnerability of our members jobs, following previous off-shoring by Capita on the VMO2 contract earlier this year with the loss of hundreds of jobs.
This announcement follows the decision by Capita to withdraw from paying the Real Living Wage and also apply a pay freeze to all employees for 2024. Not only has Capita slashed the wages of our hard-working members during the worst cost-of living crisis for decades but chosen to off-shore their jobs in their desire for profit. The hemorrhaging of jobs to cheap labour countries is simply unacceptable and our members pay the price.
The CWU will be challenging Capita on their decision and raising the profile politically. The off-shoring of work is a major problem in the UK and this is a clear example of an employer showing zero regard to its loyal employees in its search for profit.
A members’ meeting will be held this week, where we will discuss Capita’s decision and listen to our members views.
Yours sincerely
Tracey Fussey
National Officer
CWU Telecoms & Financial Services
LTB 357/24 Capita Tesco Mobile – Off-shoring to South Africa 13-11-24