Feeds

National Savings jobs to India to cost UK £25m, says union

'Squandering taxpayers' money'

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Plans to send 250 government jobs to India will cost the UK taxpayer £25m, according to the Public & Commercial Services (PCS) union.

Stepping up its campaign to prevent jobs from the National Savings Agency in Blackpool, Durham and Glasgow being shunted to India, the union claims that government coffers will lose out on £25m in lost tax and extra benefit payments.

Last month, Siemens Business Services announced that it had agreed, in principle, to a five-year extension to its National Savings contract running from 2009 to 2014. Siemens said it wanted to transfer a "small number of routine administrative tasks to Siemens in India".

The IT services firm insists there would be no job losses or site closures in the UK, and that all National Savings customers would continue to deal with UK-based staff. But the move has angered staff and union officials, who are concerned that, despite Siemens' assurances, the move would put jobs in jeopardy.

Said PCS union official Danny Williamson: "If these jobs are allowed to go abroad then it could mean 250 people on the dole claiming benefits. Over the lifetime of the contract that could cost the UK taxpayer up to £25 million in lost tax, national insurance and benefit handouts.

"If the government don't take a broader long term view and ensure the jobs remain in the UK then they are in danger of squandering taxpayers' money so that a private company get make an extra £50 million on top of what they are already paid.

"All this comes at a time when people who have been employed for up to three years on minimum terms and conditions on temporary contracts face the chop."

The PCS will consider industrial action if the contract extension - which needs Government approval - gets the go-ahead. ®

Related stories

Siemens faces outsource protest strike
Information Commissioner to rule on Lloyds TSB's jobs-to-India
BBC Tech staff reject Siemens sell-off - again
5000 Swansea staff to vote on strike

Secure remote control for conventional and virtual desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.