Capita strikes a possibility over “callous” choice to cut wages
COMMUNICATION WORKERS UNION
16/01/2024
FOR IMMEDIATE RELEASE
Strikes a possibility at Capita over “callous” choice to cut workers’ wages
Capita may soon be hit by strikes over a “disgraceful” decision to withdraw the Real Living Wage to its workers.
The Communication Workers Union (CWU) – which principally represents Capita employees on BBC, VM02 and Tesco Mobile contracts – are beginning to consult members about balloting for industrial action over the decision, which was announced today (Tuesday 16th January).
The decision to begin paying the Real Living Wage was announced in 2019, with company CEO Jon Lewis declaring in an article that Capita employees are the company’s “lifeblood”, and that paying them “makes commercial sense”.
It is estimated that most workers will lose approximately £850 a year as a result of this decision.
This is despite the company earning £33.1million of profit in 2023 – and Lewis and CFO Tim Weller earning a combined total of £2.92million between them in that period.
A CWU spokesperson said: “It is astonishing that Capita have moved to slash the wages of hard-working employees during the worst cost-of-living crisis of the century.
“This callous choice will massively impact on the living standards of those who have guaranteed the company’s profitability in trying times.
“We urge Capita’s leadership to change its tune or face the potential of serious industrial disruption.”
ENDS
EDITORS NOTES
In the last financial year, outgoing Capita CEO Jon Lewis earned a total of £1.76million – £803,000 in fixed wages and £897,000 in bonuses), while CFO Tim Weller (appointed May 2021) earned £1.16 million (£590,000 fixed and a £572,000 bonus);
Jon Lewis’ article defending the rolling out of the Real Living Wage for employees can be found here.
For further information, please contact CWU Press Officer Marcus Barnett at mbarnett@cwu.org.