Feeds

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

'Squandering taxpayers' money'

  • alert
  • submit to reddit

Intelligent flash storage arrays

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

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

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.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.