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Wednesday, November 30, 2011

Communication Workers Union: Why TV Licensing Pay Offer is Unfair

The Communication Workers Union (CWU), which represents Capita employees working on the BBC's TV Licensing contract, has explained on its website why Capita's pay offer is unacceptable.

Hundreds of Capita TV Licensing employees are staging a fourth day of action today, timed to coincide with the largest public sector strike in a generation. The workers are enraged at Capita's recent below inflation pay offer.

An article signed by CWU leader Billy Hayes explains how an unfair two-tier system of employment has developed at TV Licensing, with workers TUPEd across from the previous Consignia held contract receiving enhanced pay and conditions over those recruited directly by Capita.

Hayes gives the following ten reasons why TV Licensing employees should reject Capita's latest offer:
  • The pay offer for both 2010 and 2011 is significantly below inflation for each year. The Retail Price Index (RPI) currently stands at 5% and has been 5% or above for the whole of 2011.  It's forecast to continue to rise due to the increase in utility bills.
  • Capita could very easily afford to improve the offer for each year. Capita made £364.2m in 2010, which was 12% up on 2009 and up 31.3% compared with 2002.
  • Capita make £1million profit a day.
  • For the half yearly result for 2011 the profit is £174m - up by 7% to the previous year.
  • Directors total remuneration in 2010 was up by 11.1%. Three directors have already had increases of £5000 to their basic pay announced for 2011.
  • £1.65m was paid out in bonuses on the Capita board in 2010 - an increase of 22.9% on 2009.
  • For TV Licensing services, the Capita annual report states that service leves have been met for 33 consecutive months and all of the key targets have been hit.
  • Capita are being opportunistic - using the economy and low pay settlement elsewhere, particularly in areas that don't have trade unions, to justify the offer
  • If Capita get away with pay offers so significantly below inflation, this will be its approach to pay bargaining every year.
  •  Capita is attempting to dismiss and ignore the 88% vote from members to reject the pay offer.
Capita is not budging an inch in what is becoming into an increasingly acrimonious disagreement.

Full details appear on the CWU website.

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