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Capita's offshore strategy met with resistance as union members opt to stage a work stoppage

Capita IT Services' UK employees who are part of the Unite union have approved a strike due to the company's proposal to transfer jobs from the UK to India.

Capita's offshore strategy sparks strike action by union members
Capita's offshore strategy sparks strike action by union members

Capita's offshore strategy met with resistance as union members opt to stage a work stoppage

In a significant development, union members working at Capita IT Services (CIS) have voted in favour of strike action in response to the company's plan to move UK jobs to India. According to Unite, the trade union representing the employees, the vote was "overwhelmingly" in support of the industrial action.

The industrial action is driven by anger at CIS's plan to send skilled work abroad. David Fleming, the national officer of Unite, stated that the employees voted for industrial action due to CIS's plans to offshore jobs. Fleming expressed concerns that the move of jobs abroad by CIS could leave a damaging impact on local economies.

CIS, however, maintains that the proposed industrial action by its employees is not expected to impact its service delivery to clients. The company has robust processes in place to handle any potential industrial action, according to its statements.

Since March 30, 2012, CIS has been undertaking a consultation process with employees about a proposal to move limited elements of its work activity to its IT services operation in India. The exact timeframe of the ongoing consultation processes is not provided in the available search results.

The proposed job move by CIS is part of an effort to optimize operational efficiency and enhance service delivery to clients. Capita IT Services business has concluded that a revised delivery model is necessary to maintain its market position and meet its clients' needs effectively.

CIS announced a plan in March to cut around 400 jobs in the UK and move some roles to India. The company states that only 84 of its employees, which is 2% of its entire workforce, are union members.

It is important to note that CIS has robust processes in place to handle any potential industrial action by its employees. The company is disappointed that 84 employees have voted in favour of industrial action, but it remains committed to engaging with Unite and its members to find a resolution.

The consultation process with employees about the proposed job move to India is still ongoing. Fleming emphasized that once jobs are moved abroad by CIS, they do not return. Therefore, he called on the company to reconsider its decision and invest in the UK workforce instead.

As the situation develops, both CIS and Unite will continue to engage in discussions to find a resolution that is acceptable to all parties involved. The potential impact of the industrial action on CIS's service delivery to clients and the local economy remains to be seen.

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