LTB 022/24 - CAPITA GROUP: COMMITMENT TO BE A REAL LIVING WAGE EMPLOYER ABANDONED

[POSTMAN]

https://www.cwu.org/ltb/ltb-022-24-capi ... abandoned/

LTB 022/24 - CAPITA GROUP: COMMITMENT TO BE A REAL LIVING WAGE EMPLOYER ABANDONED
16th January 2024

Dear Colleague

CAPITA GROUP: COMMITMENT TO BE A REAL LIVING WAGE EMPLOYER ABANDONED

Capita Group has today announced it will no longer be a Real Living Wage (RLW) employer. This is a disgraceful decision which will have a significant and detrimental impact upon many of our members working on the TV Licensing (BBC), VMO2 and Tesco Mobile contracts. Capita’s announcement by the outgoing CEO Jon Lewis included the following statement:

“Unfortunately, the proposed 2024 Real Living Wage Foundation increase of 10.1% is not affordable or one that we can realistically pass on to all our clients.”

Capita has been a RLW employer since 2020 and its lowest paid employees currently earn the Living Wage Foundation’s recommended wage of £10.90 per hour (outside of London); which was due to increase to £12 per hour from 1st April 2024 (+10.1%) in line with the Living Wage Foundation’s recommended annual increase.

Jon Lewis has confirmed that Capita Group will instead make the following increase to the lowest paid workers from 1st April:

“…from 1 April 2024, we will pay a minimum hourly rate of £11.56, which is higher than the UK National Living Wage of £11.44. Colleagues currently earning the Real Living Wage of £10.90 will receive a pay rise to at least £11.56. This equates to a minimum increase of just over 6% which is higher than the current rate of inflation at 3.9%.”

Capita’s attempt to justify this callous decision by comparing its new minimum hourly pay rate with the UK National Living Wage is appalling. In 2019, Capita announced its association with the Living Wage Foundation with great fanfare in a move to distance itself from bargain basement low wage employers; and that’s exactly what it will become again. Capita’s decision to renege on the RLW increase will be met with dismay by our members, many of whom are already facing hardship, especially as they were expecting to receive at least £12 per hour from 1st April.

With pay negotiations for the TVL, VMO2 and Tesco Mobile contracts due to commence in the near future, this development will obviously have a material impact upon pay bargaining. In this regard, we will be consulting with our Senior Capita Representatives to jointly determine next steps, which will be reported in due course.

Yours sincerely

Andy Furey

Assistant Secretary

Tracey Fussey

Assistant Secretary

[Wullie10]

I wonder how many Capita employees work from home ? How wonderful it must have been to save the commute time and money. Take the dog for a walk , watch a bit of daytime TV, sit at the desk in pyjamas, eating cheap microwave meals ? Maybe the low wages reflect the nature of the work ? After all remote work can be anywhere. I don't really know but it would be interesting to find out. No wonder they are so slow to sort out our pensions.

[NorthernBoy]

I wonder how many Capita employees work from home ? How wonderful it must have been to save the commute time and money. Take the dog for a walk , watch a bit of daytime TV, sit at the desk in pyjamas, eating cheap microwave meals ? Maybe the low wages reflect the nature of the work ? After all remote work can be anywhere. I don't really know but it would be interesting to find out. No wonder they are so slow to sort out our pensions.

Or could it be that your Capita worker has a massive workload of cases to get though for one person. Capita like RM and most other employers just want more and more out of you.

The raising of the minimum wage I believe is a good thing but it has consequences. We are effectively moving to a society where wage differentials are very narrow for a large amount of the workforce. This may actually turn out to be a good thing as it may create a more fairer/equal society long term.

Why should someone working in a care home not be paid the same as say a binman, both equally important jobs. We are living in changing times.

[Wullie10]

Speaking to a few people who have dealt with Capita well basically you get what you pay for . Not so much work load as poor or non existing training I'd say. One lady I know who tried to sort her late husbands pension out with Capita had quite a few words to say about them , and they weren't very kind.