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Press Release

CWU says Capita TVL contract win should bring pay rise

1 December 2011

The Communication Workers Union (CWU) today urged TV Licensing services provider Capita to “pay workers a fair and decent pay rise” as news broke that the company has been awarded an eight-year contract extension by the BBC.

The contract is worth around £560 million, starting in July 2012, but the company has been locked in a dispute with staff over pay for the last few months. Four days of strike action have been taken. In a statement to employees this morning (Thursday), “delighted” Capita divisional director Terry Boynes said to staff: “I would like to take this opportunity to thank you for your ongoing hard work.”

Andy Furey, CWU assistant secretary, said: “We congratulate Capita on winning the new TV Licensing contract and urge them to celebrate by giving staff a decent pay rise.

“This win is down to the hard work, professionalism and dedication of the workforce. It's good to hear My Boynes recognising the contribution of the workforce, but hard-working staff want him to prove he means it in deeds not just words.

“Only yesterday, hundreds of Capita workers took their fourth day of strike action in pursuit of a fair pay rise and I urge Mr Boynes to act now to settle this dispute, use some of the £560 million that this contract is worth to give the workers a fair share of the success they have created.”

Capita has refused to increase a pay offer worth around 2.6%. Capita makes more than £1 million profit every day and last year gave the CEO and other senior executives a 17% pay rise. Many staff earn just above the minimum wage and are struggling to cover rising food and fuel bills.

Notes:

Capita staff working on the BBC TV Licensing contract haven't had a pay rise for almost two years. They rejected the original offer from Capita by 88 per cent in a consultative ballot. This was imposed in October

Staff have staged four walkouts – on 17th and 31st October and 18th and 30th November.

CWU balloted 586 Capita workers. 301 members voted in favour of strike action, with 89 members voting against, giving a 77.2 per cent yes vote on a 66.6 per cent turnout.



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Communication Workers Union

Communication Workers Union

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