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Latest NewsTech sectorPay & benefitsPay settlements

Fujitsu tells employees they will receive no pay rise

by Adam McCulloch 14 Sep 2024
by Adam McCulloch 14 Sep 2024 Photo: Shutterstock
Photo: Shutterstock

The computer firm at the heart of the subpostmaster scandal has told employees there will not be a general pay rise this year.

Fujitsu, which was behind the Post Office Horizon system, informed staff on 10 September of the decision.

A company statement read: “Prioritising how our limited pay budget is best used this year, there will be no UK-wide pay increases as there has been in recent years, and unfortunately the majority of colleagues can expect not to receive a pay increase this year.”

ITV’s dramatisation of the Post Office Horizon scandal, Mr Bates vs the Post Office and the appearances of key employees before the public inquiry investigating the scandal has seen the company face a wave of criticism.

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Fujitsu took full ownership of the ICL Ltd in 2002 after acquiring successively larger stakes in the UK computing business since 1990. Since 1999 the firm provided the Horizon software and support to the Post Office and subpostmasters. The company has subsequently been blamed for covering up major software defects that led to subpostmasters inputting erroneous figures, which left many facing prosecution.

The scandal, called the UK’s largest ever miscarriage of justice, has damaged Fujitsu’s reputation and led to a self-imposed bidding ban amid expectations that the company will help cover the enormous costs incurred by Horizon’s problems.

In June, Fujitsu announced cuts to reduce costs and increase competitiveness and in April it told staff that about 100 sales, pre-sales and logistics jobs were to be cut, as the UK business outlook declined.

The IT giant’s contract with the Post Office to support the Horizon system is also set to end. However, according to Computer Weekly, the journal that first exposed the scandal more than 15 years ago, delays in replacing Horizon mean that Fujitsu’s contract with the Post Office could be extended another five years, with the supplier set to receive another £180m of taxpayers’ money.

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Adam McCulloch

Adam McCulloch first worked for Personnel Today magazine in the early 1990s as a sub editor. He rejoined Personnel Today as a writer in 2017, covering all aspects of HR but with a special interest in diversity, social mobility and industrial relations. He has ventured beyond the HR realm to work as a freelance writer and production editor in sectors including travel (The Guardian), aviation (Flight International), agriculture (Farmers' Weekly), music (Jazzwise), theatre (The Stage) and social work (Community Care). He is also the author of KentWalksNearLondon. Adam first became interested in industrial relations after witnessing an exchange between Arthur Scargill and National Coal Board chairman Ian McGregor in 1984, while working as a temp in facilities at the NCB, carrying extra chairs into a conference room!

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