Unions still suspicious of outsourcing

A ground breaking deal between BT and trade union Connect on offshore outsourcing has not dispelled union fears of UK job losses.

Connect has made an agreement with BT that if the telco intends to outsource jobs or move them offshore, it will not lead to compulsory redundancies.

Connect's members, all of whom are specialist and skilled IT workers, will instead be offered jobs of similar status on other projects.

But other unions said that the deal does not address the fundamental problems of potential job losses and lack of future employment opportunities for UK workers.

The fear is that the drive towards offshore outsourcing may start with low-skilled workers but move up the skills chain.

An Amicus spokesman said: "We have never had a hardcore attitude against offshoring and are more than happy in some cases to encourage it.

"But we don't want this to lead to companies eventually outsourcing much of their entire operations and we end up as a nation of fat cats and hairdressers."

The Communications Workers Union (CWU) is even more outspoken in its condemnation of the trend, maintaining that the kind of deal Connect was able to make is not robust enough for its members.

The CWU insisted that it could not accept a similar deal because it was not "meaningful" for its members and placed no limitations or restrictions on BT.

It further warned that the Connect deal could be the start of a slippery slope and that many companies were watching BT's progress with interest.

"The process starts with low-skilled workers and could move into other job areas as BT will have the ability to transfer all kinds of work abroad," said a CWU spokesman.

At a fringe meeting during the Labour Party conference the spokesman also warned that the government is not fully aware of the implications.

"We need a dialogue with government because they do not understand the impact that this bandwagon will have on the UK," he said.

See also:

Enlarged EU to attract offshoring

Better Hungary than India?  03 Oct 2003

Offshore outsourcing

An opportunity to improve business processes, or a danger to the UK's IT industry? The outsourcing issue continues to provoke lively debate.  25 Sep 2003

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