CWU hails transfer deal

Intense negotiations by the CWU communications union last month resulted in a deal with Telefonica O2 on “the biggest outsourcing deal in British history”, worth £1.2 billion over 10 years.

The union refused to concede important principles in return for extending what was a very short 41-day consultation period, but withdrew its strike ballot after reaching an agreement.

While fiercely contesting plans to transfer over 3,000 jobs to Capita, along with hundreds of redundancies, the union was faced with the need to protect terms and conditions, pay, pensions and union recognition, in the knowledge that Capita has lower pay rates for its own call centre staff (around £7 per hour instead of £10) and a history of cutting jobs.

Despite rumours of O2’s outsourcing plans back in April, staff were not allowed the 90 days of consultation usually allowed in TUPE cases of this kind.

And with the publication of leaked Capita plans to close two of the four sites — at Bury and Glasgow (like those at Leeds and Preston Brook near Warrington, these are important local employers) — a deal was badly needed.

With a strike ballot underway, the employers finally conceded a job security agreement, protection for terms and conditions in their entirety (unless the employee moves to a new job in Capita), a framework for redeployment and a comprehensive recognition agreement.

CWU deputy general secretary Andy Kerr said the union had secured “far better protections” than were originally on offer.