CAPITA TVL: PAY 1STJANUARY 2022 – IMPASSE REACHED

CAPITA TVL: PAY 1STJANUARY 2022 – IMPASSE REACHED

Further to LTB081/22 dated 22ndFebruary.  Branches are advised that a further meeting was held with Paul Johnston, Managing Director, Capita TVL on 9thMarch.  During the meeting I reiterated the Union’s position, which is that we are seeking a fair and reasonable pay rise in line with the rising cost of living and in particular the huge increases in utility bills along with the imminent 1.25% increase in National Insurance contributions.  A cordial and constructive discussion was held around various pay related matters along with a suggestion for a couple of general improvements to ways of working for our members.  However, despite both parties wanting to reach agreement, it is clear that the pay offer currently on the table falls significantly short of our aspirations, especially with inflation forecast to continue rising.

Annual Report & Accounts for 2021 – Significant Profit Growth

Capita Group yesterday announced its results for the year to 31st December 2021.  The company has undertaken an extensive transformation programme, with total cost savings of more than £425m (£123m of this being in 2021).  This restructuring is now complete and Jon Lewis, CEO stated in the Group’s financial statement “These cost savings were a major driver of our profit improvement in 2021”, profits which now stand at £285.6m having risen significantly from a £49.4m loss in 2020 – an increase of 678%.

A summary of yesterday’s financial results drawn up by our Research Department is attached for information.

Jon Lewis also noted Capita “…will continue to focus on driving investment in our people….” And crucially he admitted “None of this would have been possible without our people, whom I would like to thank for all their hard work, commitment and professionalism.”

The BBC contract extension (announced in February – refer to LTB077/22) was also highlighted in the financial report as a positive under the heading “Growth” as follows:

“Good start to 2022 in Experience with £456m five-year BBC TV licensing extension announced in February”

Clearly, our members working on the TV Licencing contract are playing a vital part in the growth strategy of the newly streamlined Capita Group and it naturally follows they should be rewarded in a meaningful way for their hard work and commitment.  Unfortunately, the pay offer as it stands doesn’t do this.  Therefore, if the CEO genuinely believes in “driving investment in our people”, he should ensure they are given a decent pay rise to enable them to cope with the extreme cost of living.

Next Steps

In view of the prevailing situation, whereby achieving an agreement is looking problematic, we have organised a meeting with our Capita TVL Reps on Monday 14th March to discuss next steps.

Further developments will be reported.

Yours sincerely

Andy Furey
Assistant Secretary

22LTB115 Capita TVL – Pay 1st January 2022- Impasse Reached

Attachment 1 to 22LTB115

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