Outsourcing giant dubs Labour Court finding ‘inappropriate’ 

Capita has government contracts worth nearly €140 million

November 21st: Unite, which represents workers made redundant by AMT-Sybex, a subsidiary of outsourcing giant Capita, today (Tuesday 21 November) accused the outsourcing giant of displaying ‘breathtaking contempt’ for both its employees and the state’s industrial relations machinery.

In September the Labour Court recommended enhanced redundancy terms of 5.5 weeks per year of service.  The company has refused to implement the recommendation, and in a letter dismissing the workers’ appeal against redundancy Capita described the Labour Court recommendation as ‘inappropriate’ and ‘out of line with company policy’.

Replies to Dail questions show that Capita has numerous departmental contracts worth nearly €140 million, including the contract to run Eircode as well as contracts with NAMA and the NTMA.  This figure does not include other contracts with semi-state bodies.

Commenting, Unite Regional Officer Bernard Daly said:

“Capita has a highly lucrative relationship with the Irish state, benefitting from departmental contracts to the tune of nearly €140 million.  Yet they have treated our members and the state’s industrial relations machinery with breathtaking contempt.

“Those being made redundant have up to twenty years’ service yet the company is refusing to pay the enhanced redundancy terms recommended by the Labour Court, which was also critical of the process leading up to the redundancies.

“Our members have voted for a campaign of industrial action which will be taking place over the next number of weeks.  In addition, we will obviously be examining all legal avenues open to our members in light of Capita’s behaviour.

“We have also written to Finance Minister Paschal Donohoe alerting him to Capita’s behaviour and asking him to review the award of public contracts to the company”, Bernard Daly concluded.