A trade union has said it needs to understand more about how the Vodafone and Three merger will affect people working in the telecoms sector.
Vodafone Group and CH Hutchison Group Telecom Holdings, the owner of Three UK, have agreed to combine their UK businesses, creating one of Europe’s largest 5G networks.
They said the merged company, which is subject to approval by the Competition and Markets Authority, will invest £11bn over the next 10 years to support between 8,000 and 12,000 jobs in the organisation and the wider economy.
Ahmed Essam, Vodafone UK chief executive, said: “The combination of Vodafone UK and Three UK will bring more choice and better value to customers nationwide. With scale to invest, we will create a best-in-class 5G network, supporting the Government’s 5G ambitions, drive digital transformation and create jobs.”
Three UK CEO Robert Finnegan said: “The combination of Three UK and Vodafone UK will bring the advantages of 5G to every business and household in the UK, enabling the UK to deliver its ambitions for digital and economic growth and fully supporting the UK government’s objectives for a world-leading digital economy.”
However, the Prospect union, said it was keen to understand how the Vodafone and Three merger would affect its members and jobs in the wider telecoms sector.
National secretary John Ferrett said: “Prospect welcomes efforts within the telecoms sector to increase investment, which should hopefully lead to greater job quality and security for our members. But we are keen to understand the wider impact this merger could have for the other UK mobile networks and our members working there.
“We will follow the CMA’s review closely and support our members to ensure that their interests are at the forefront of any future business planning decisions.”
Elsewhere in the sector, Virgin Media O2 has announced plans to bring its previously-outsourced O2 mobile phone stores back in-house.
According to the Communication Workers Union, the ex-franchisee employees have the opportunity for significant pay uplifts once their store transfers to VMO2 ownership and they agree to the firm’s terms and conditions.
Last month union members at VMO2 accepted a pay deal of up to 10%, plus a £400 lump sum.
CWU national officer Tracey Fussey said: “This change of tack will not just create job vacancies in some of the stores as they come back into VMO2 ownership, but also provide for secure and direct employment with VMO2 and opportunity for transferring employees to be included within our collective bargaining unit.
“When each store transfers to VMO2 they will close for two weeks for a full store re-fit, and during that time employees will attend training at their nearest company-owned O2 store – allowing them to be trained on O2 systems, processes and procedures.”
Sign up to our weekly round-up of HR news and guidance
Receive the Personnel Today Direct e-newsletter every Wednesday
An O2 spokesperson said: “To deliver the great products and services our customers expect, we sometimes need to evaluate how our business operates. After reviewing our retail strategy, we’ve decided to bring the majority of franchise stores under company ownership over time, investing in refurbishments to enhance our customers’ high street experience and creating opportunities for franchise employees to join the O2 business.”
HR roles in telecommunications on Personnel Today
Browse more HR roles in telecommunications
