Fujitsu workers to vote on industrial action

Fujitsu employees in the North are to hold a ballot on industrial action regarding pay and pensions, it was announced today.

Trade union Unite said some 2,000 of its members employed by the IT company across the UK would be involved in the consultative ballot over a company decision which it said would reduce workers’ pay packages by over 15%.

The union accused the company of being a successful firm seeking to take advantage of the recession to attack pay, pensions and conditions.

Around 4,000 employees in the company’s main defined benefit pension plan are being hit by the company plan to close the scheme to future accrual, said the union.

After major expansion in the past couple of years Fujitsu employs some 900 people in the North.

Unite said if the management plan went ahead the company intended dismissing employees after the end of a consultation period in September, and offering them employment on new contracts which were unchanged except in relation to pensions.

It said the move was the latest in a series of attacks on employee conditions at Fujitsu Services while it continued to record significant profits.

Recent results for 2008-2009 showed a 12.5% increase in revenue to £2.8bn (€3.3bn), £199.2m (€234.14m) pre-tax profit and an increase in gross margins to 19.9% – coupled with a payout to two directors of £1.59m (€1.87m) in compensation for loss of office.

Joanne McWilliams, Unite regional organiser for IT and communications, said: “Fujitsu Services is a highly profitable and successful company which is seeking to take advantage of the recession to attack pay, pensions and conditions.

“The company is indicating a willingness to constructively consider alternative pension options identified by representatives. We are insisting that the company should increase pay and provide decent pensions for all its employees.

“Our position is to protect the defined benefit pension scheme. Any changes which reduce financial risk to the company at the expense of members should be compensated for accordingly.”