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18 July 2007

Openreach Service: Off-shoring

Openreach and CWU - on a collision course over off-shoring

Off –shoring is a polite way of saying that jobs are exported. In an environment where much of the administration or support work is done electronically, most jobs could be under threat. In Openreach Service this means the Management Centres, the former PSUs and a host of other admin roles.

The fact is that there has been a tiny amount of off-shoring since Openreach was created but this was one-off projects or simple key stroke work. The Union did take a pragmatic view then because the work was time specific and no jobs were being threatened in the UK. Things changed late last year when it became obvious that Openreach was building a permanent off-shored capacity. We sought then negotiations aimed at an agreement on what work could or would be considered, the amount and security of employment for Openreach employees in the UK. To date the business has failed to respond in any kind of positive manner. Indeed the reverse has been true – Openreach has told us that it “is not yet minded” to come to an agreement.

Earlier this year we were told about Project Fleet. This affected a small number of people who prepare reports and analyses on how the business is doing. On one hand the union was told that there was an increasing demand for these reports and that eventually they would be produced automatically. If the issue was that there was a temporary need to do the increased numbers with no loss of jobs, we could have reluctantly come to an understanding. The fact is that jobs were being cut whilst the work was being sent to India. This should sound alarm bells amongst all of Service’s employees. It certainly sounded a warning to the Union’s Executive who has resolved to fight the permanent export of jobs by industrial action if necessary.

It is not as if the Union is seeking something revolutionary. Other lines of business – notably Retail and Global – have already come to agreements on off-shoring – or remote sourcing as it is sometime known. If they can do it why is Openreach so resistant? Could it be that it wants to put all of the support and administrative work beyond the reach of Openreach employees? The CWU has stated openly to management that we will not stand idly by and let this happen. What is at issue is the future of meaningful, high skilled, higher graded work within the Service part of Openreach. It is work currently done by around 1800 members directly employed by Openreach not to mention a number of agency members employed in the UK. Seeking long term commitments about employment and grading is not an unreasonable demand. Openreach has so far only committed to telling us the resourcing levels up to next March. A mere nine months. Our members have their lives invested in this industry so may have to be ready to fight for that investment.

The Union’s Executive is seeking urgent discussions with senior Openreach management aimed at getting a satisfactory agreement and assurances on behalf of members. If this does not bear fruit, then the Union is committed to campaigning amongst members in Service for a successful ballot on industrial action. Hopefully Openreach will show more of a commitment to its employees in Service than has been the case up to now. If not, the CWU will be seeking a commitment from members to defend their jobs. For more background see LTB 618 on the Union’s web site

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