Welcome pay boost for Capita’s lowest paid as negotiations begin for the rest

Telecoms & Financial Services, Capita April 27 2020

Longstanding CWU demands for Capita to pay a minimum of the Real Living Wage (RLW) across its the O2 and Tesco Mobile contracts are now being met – with the positive news that the company is honouring commitments made by CEO Jon Lewis last year to pay at least £9.30 per hour across all of its UK operations from this month (April) onwards.

Welcoming Capita’s decision to press ahead with the much vaunted uplift for the lowest paid people in the company – despite the financial challenges posed by Covid 19 – CWU assistant secretary Brendan O’Brien points out that the move finally fulfils a key plank of the unions 2019 pay claim that was lodged with the Capita on behalf of members in the two outsourced Telefonica contracts in December 2018.

Although that claim was rebuffed at the time, 16 months later the introduction of the RLW is now set to make a real difference to hundreds of CWU represented grade employees at the Leeds, Bury and Preston Brook sites when they receive their April pay packets.

“As well as benefiting a significant number of members in our recognised bargaining units, it’s important to remember that some of the biggest winners will be staff in the huge swathes of Capita where no union is currently recognised for collective bargaining purposes,” explains Brendan.

“These include our members in Dearne Valley, along with thousands more across the Capita Call Centre Management organisation.

“It’s nice to think that our lobbying at the end of 2018 and the start of 2019 has belatedly borne fruit – but, either way, this is a very welcome development for Capita’s lowest paid staff , and better late than never!” 

Pay talks to begin at last for the rest…

Meanwhile, the CWU has also welcomed Capita’s belated acknowledgement that pay negotiations are overdue in those parts of the company where unions are recognised for collective bargaining purposes – including on the Capita O2 and Tesco Mobile partnerships.

Four months after the relevant January 1 pay date came and went, CWU patience has been wearing increasingly thin at company stonewalling on the union’s 2020 pay claim, which was lodged well before Christmas, for:

• A 3% minimum increase for all those CWU-represented grade employees whose basic hourly rate is greater than the RLW
• A 3% minimum increase for those who, on moving up to the RLW, receive a pay rise of less than 3%.

Following months of stonewalling by Capita – during which company negotiators have repeatedly deferred and cancelled meetings on the basis that they were awaiting direction from Capita Group, last week the union was notified that “meetings are now being arranged to conclude the pay negotiations.”

Less encouragingly, however, the statement indicated that the talks would be limited in their scope, addressing “pay compression in the levels immediately above (the RLW) in order to maintain some differential,” and the company’s intention to “defer discussion” on any pay increase for those earning more than £28,000.

CWU national officer Brendan O’Brien, who will lead the forthcoming  negotiations with the company, explains: “After the long wait for any formal company acknowledgement of the fact that pay talks are long overdue, in a sense it’s helpful  to at least have some visibility of the company’s opening position – even though it’s now very plain indeed that the forthcoming these talks are going to be very challenging and complex indeed.

“For a start, we need to need to understand what exactly the company is proposing for members who are paid more than the RLW but below  £28,000 – something that applies to the vast majority of the Capita O2 and Tesco Mobile TUPE populations.

“We also require clarity on what the  ‘deferring’ of talks for those paid above £28,000 actually means , because it would be utterly unacceptable to the CWU if the company’s position is that these legacy C2 grade individuals are being expected to forgo a cost of living pay increase in 2020.

“While it’s true they represent our higher-paid members in Capita, those earning just over £28,000  can hardly be regarded as ‘highly paid’, given that the UK’s median income is stands at just over £30,000.

“Tough talking clearly lies ahead – and members can rest assured  the CWU will be robust in putting forward its conviction that all CWU represented grades deserve fair pay rise.”

• Members in Capita are urged to share this story with any colleagues who have not yet joined the union. 

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