Workers union Unite is urging Capita to rethink its pension proposals including the closure of the current defined benefit scheme.

According to the union, staff began voting in a strike ballot yesterday, 14 August 2017, on the major changes to staff pensions.

In July, Capita informed its workforce of significant changes to their pension arrangements, with the closure of the DB scheme and employees set to suffer a considerable cut in their retirement income as a result.

If Capita implements its proposal in the current form, further attacks on other pension arrangements are likely, Unite has said. The Capita sites where Unite members will be affected are: Birmingham (two locations), Reading, Bristol, Belfast, Manchester and Stirling.

Affected unite members are mainly employed by Capita Life & Pensions Regulated Services and some work for Capita IT Services.

Capita contracts that will be affected if industrial action takes place are: Prudential, Royal London CIS, Phoenix / Royal London (Birmingham), Friends Life, Belfast, Specialist Services (all sites) and IT Programmes / projects (all sites).

Unite national officer Dominic Hook said: “The disgraceful plans by Capita to slash the deferred pay that staff will get in retirement is utterly unacceptable. Capita’s pension proposals will have far reaching consequences for the retirement of many Unite members. Some staff will lose a shocking 70 per cent of their retirement income.

“Capita has once again put the interests of shareholders before those of their staff. Unite members want to know how a highly profitable company such as Capita can undermine the morale and loyalty of hard working staff by proposing to remove their defined benefit pension? There is no justification for highly profitable Capita to treat its workforce in this manner.

“Capita must urgently rethink these pensions proposals in order to prevent industrial action.”

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