To:All Branches with Members in Capita / O2Contract

Final Pay Offer for Capita O2 TUPE Population Only

Dear Colleague,

It has been a while since the CWU communicated directly to you regarding pay negotiations for 2018 and we must apologise for this. Negotiations on pay this year have been frustrating andunusual in that there have been more factors to consider making the process a lot more lengthy and challenging than usual.

Members on a Capita contract received changes to their pay as a result of the introduction of a Pay and Reward Structure early in the year and therefore had already received the Annual Pay Review as part of that Structure. We also needed to get clarity that the negotiations covered the TUPE population across both the Preston Brook and Leeds ABC sites.

Negotiations were then stalled for some weeks by the Capita Group announcements of financial uncertainty and transformation that itself had an impact in negotiations and subsequently lead to the tabling of an offer of 1.75% increase in pay at the time. After some deliberation the CWU National Team led by the CWU National Officer Brendan O'Brien rejected the offer as falling short of the aspirations of the membership.

Back in early February we were advised that the Capita Group were to push on with plans announced by the CEO Jon Lewis in Investing in the Future and Strengthening the Finances. This also meant looking at individual business costs with respect to support functions and non-front line services. We were told that the Group problems were not meant to impact the front line or reduce customer facing roles but in our view it was clearly reflected in the pay offer. Although we understood there was an increased focus on cost control against all budgets.

Since those announcements a considerable number of meetings and exchanges of correspondence have taken place with an increased intensity in recent weeks. This has resulted in an increased offer of 2% across pay bands. This offer is above the pay pot allowance expected by Group and, therefore, it is the view of the CWU National Team that this offer constitutes the best deal that can be achieved through negotiation. The offer of 2% willbe recommended to members via a consultative ballot exercise.

Our thanks go out to those members in the TUPE population who have kept interest by maintaining pressure in meetings and conversations with both the union representatives and management.

Details of the ballot timetable will follow shortly but if accepted in the ballot, the increase in pay will be backdated to 01 January 2018.

Any views or questions can be addressed to your local rep or sent to: .

Yours sincerely

Brendan O’Brien

Assistant Secretary (T&FS)