Capita staff prepare for strikes over pensions

Alongside Capita's labyrinthine half-year results that left many investors cold and sent the shares down 11%, the company was also forced to prepare for industrial action after unions voted to strike.

Unite, the union representing staff at Capita, reported that staff have voted overwhelmingly in favour of striking in protest at the company's proposal to close the current defined benefit scheme and transfer staff to a defined contribution scheme.

In the strike ballot, 95% of members voted for action, with almost three quarters of union members turning out to vote.

Unite members plan to take six continuous days of strike action starting on 5 October for workers based at Capita Life & Pensions Regulated Services and Capita IT Services, with affected offices including two in Birmingham, Reading, Bristol, Belfast, Manchester and Stirling.

Unite suggested Capita contracts with Prudential, Royal London, Phoenix, Friends Life, plus specialist services at all Capita sites and IT programmes and projects at all sites.

In June Capita told staff about changes to the pension arrangements, which Unite said will result in employees suffer "a massive cut in their retirement income as a result of the proposals".

Dominic Hook, Unite national officer, 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% of their retirement income."