Unite to ballot members in Fujitsu on attacks on pay and pensions

3 August 2009

Unite, the largest union in the UK, is to conduct a consultative ballot on industrial action over pay and pensions involving up to 2000 of its members in Fujitsu.

Some 4000 employees in the main defined benefit pension plan are being hit by the company's plans to close the scheme to future accrual. If the proposal goes ahead, the company intends dismiss employees after the end of the consultation period in September, and offer them employment on new contracts which are unchanged except in relation to pensions.

The union estimates that the proposed pension scheme change would reduce the total pay package of each employee by at least 15 per cent, and is the latest in a series of attacks on employee conditions at the company.

However, Fujitsu Services continues to make significant profits, with its recent 2008-2009 results showing a 12.5 per cent increase in revenue to £2.8bn, £199.2m profit before taxation, an increase in gross margins to 19.9 per cent and a pay out to two directors of £1.59m in compensation for loss of office.

Peter Skyte, Unite national officer 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.”

Fujitsu employs around 12,000 people in the UK.

ENDS

For further information please call Peter Skyte on 07768 931302 or Ashraf Choudhury in the Unite Press Office on 020 7420 8914 or 07980 224761.

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