IT staff to vote on strike ballot over offshoring plans

Unite is balloting members at Steria

Staff at an IT vendor working on an outsourcing deal with Co-operative Financial Services (CFS) are being asked to vote on potential strike action over the threat of jobs being offshored to India.

Trade union Unite is to ballot 176 members at IT services supplier Steria in Manchester and Skelmersdale in a bid to prevent compulsory redundancies and the transfer of their work to India.

Most of the employees are ex-CFS staff outsourced to the supplier in 2007. According to Unite, they were told in the summer that a third of the IT support work for the Co-op was being offshored, with a loss of 90 jobs. Voluntary redundancy was offered, but 30 of the roles are now expected to be pushed through as compulsory redundancies.

Unite said CFS wants to accelerate the offshoring done by Steria, with 70 per cent of the work eventually to be undertaken in India.

The union opposed the moves and is beginning an industrial action ballot among members this week.

“We are appalled that work is being transferred to India, forcing workers out of their jobs at this time of economic downturn and rising unemployment, ” said Unite officer Richard Lynch.

“We do not consider this either fair or ethical and we have had no option but to recommend to members that they vote for action to prevent current and future redundancies and to put the brakes on the increasing transfer of UK jobs to other countries.”

Steria spokeswoman Andrea Hawkins said the supplier is making every effort to make sure that compulsory redundancies are reduced and that alternative roles are available.

“A very small number of UK posts have been identified as at risk of redundancy. This represents just 0.6 per cent of our 5,000 UK workforce,” she said.

“The challenge of continually delivering an industrious, leaner business model for our clients and their customers is crucial in today's economic environment. As part of that programme our Co-operative Financial Services account has been reviewed to ensure we strive to develop and maintain our high levels of competitive service and efficiencies.”

Hawkins said the firm was "disappointed" that Unite felt it necessary to ballot its members.

“Steria is in close talks with Unite and redundancies are identified not in terms of potential profit but in the real business context of making this business unit more competitive and streamlined, thereby safeguarding other crucial UK based roles,” she said.