Union seeks pay rises for Capita’s O2 and Tesco Mobile staff

Capita's head office in Leeds.
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Capita has been urged to increase pay for staff who work in its O2 and Tesco Mobile customer contact centres and narrow the difference in wages that exist between staff on different contracts.

The Communication Workers Union (CWU) is seeking “a significant consolidated increase in base pay” for all of the employees it represents in Capita’s O2 and Tesco Mobile roles, regardless of which grade they are on.

The union’s assistant secretary, Brendan O’Brien, said it also wanted Capita to narrow the difference in pay between staff employed on Capita contracts and those who remained on former Tesco Mobile and O2 contracts after they transferred to the organisation under TUPE. He said the latter staff were on higher rates of pay than those who were on Capita contracts.

The CWU has not disclosed what the difference in pay might be, but it is seeking a 5% increase in the base pay bill for the employees it represents, allowing for “flexibility in negotiations” as to how the increase will be divided between the two groups.

The lowest hourly rates in both the CWU-represented Capita O2 and Tesco Mobile partnerships stand at £8.83, it claimed.

Earlier this year Capita CEO Jon Lewis committed to paying all UK staff at least the “real” Living Wage, as set by the Living Wage Foundation, from 1 April 2020. Last week, the Living Wage Foundation increased this rate from £9 to £9.30 for employees outside of London.

O’Brien said: “The CWU recognises the pledge from Capita to pay the Real Living Wage, but does not believe this goes far enough for those on low pay.

“I’m not expecting either set of pay talks to be easy or simple, but it’s essential that the huge contribution our members make in keeping both partnerships successful is recognised in this year’s pay round – regardless of whether those members are on Capita contracts or part of the TUPE population.”

Pay negotiations for Tesco Mobile Capita staff will commence on Monday 2 December, while the first Capita O2 Partnership pay meeting is expected to be scheduled shortly.

A Capita spokesperson said: “Capita has committed to pay all UK employees the Real Living Wage, as a minimum, from April 2020. This represents a significant investment in our lowest paid employees.”

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