J3
IMMINENT OFFSHORING OF WORK
IN THE
NORTH EAST BY NATIONAL
GRID
For the attention of Councillors and MPs representing
the North East
Dear Colleague
You will probably already have been contacted by members of your
constituency regarding the issue of imminent job losses for
National Grid staff in the North East, and I would like to take
this opportunity to update you on the most recent developments.
The Company Chief Executive now seems to have changed his
rationale behind the expected jobs cuts and offshoring of
work. In a letter to local MP Stephen Byers in January 2009,
he suggested that the changes the Company were looking at were due
to regulatory pressures. Following a visit by Trade Unions to
the Regulator, Ofgem, Mr Holliday (in a letter to Ofgem) now
confesses that changes in the business are down to "obligations to
shareholders and to customers".
- According to National Grid, 'no decision' has yet been made.
However, employees have now been advised that National Grid have
short-listed two companies, Wipro and Tata Consultancy Services
(TCS), to make a business case for taking over the work at
Newcastle. Both of these companies depend on workers in low wage
economies, such as India, to deliver their business.
- Interestingly, Wipro were investigated by the World Bank for
fraudulent behaviour, then convicted and banned by the World Bank
for four years in June 2007. News stories at the time said "
they violated the fraud and corruption provisions of the
procurement guidelines or the consultant guidelines".
- TCS are the Company currently involved in shedding
approximately 2000 North East jobs at the various Corus
plants.
- Despite political and Trade Union pressure, National Grid
remain evasive and refuse to give straight answers about the future
of the Newcastle site. The Chief Executive, Steve Holliday,
has declined a number of invitations from workers in Newcastle to
meet them to discuss their future.
Cont/…
Page 2.
- National Grid have suggested to a Member of Parliament that in
the event of outsourcing, alternative employment will be
discussed. This has never been said to the Trade Unions or
employees concerned. It also seems extremely unrealistic, given
that National Grid operations would be based almost solely in the
Midlands.
- Given that both Wipro and TCS seem to base their business model
on work being undertaken in low wage economies, the opportunities
for the TUPE transfer of staff would again seem to be extremely
limited.
- Even if TUPE did apply, then the National Grid employees
are concerned about the long term intentions of Wipro and
TCS. It seems that both have tainted backgrounds when
it comes to employee relations. At Legal and General, one
year and a day after the transfer of employees, TCS made
workers redundant and replaced by offshore workers at a ratio
of 1:9.
- Your constituents need your support NOW!
Timescales are almost up and decisions made on the tender will be
irrevocable by the company. Please help us to safeguard these
189 North East jobs, not only for the direct effect this
would have on the employees, but also the subsequent knock-on
effect this could have on our local economy and communities.
The joint trade unions are committed to fighting the closure of
Newcastle and the offshoring of work by National Grid. This
year National Grid posted a 12% increase in profits to nearly
£3bn. In the employees and unions' view the closure and
offshoring of work from Newcastle would represent the very worst in
corporate greed.
Decisions will be taken imminently and your constituents, the
workforce at National Grid Newcastle, need your help. We
would be very grateful if you could make direct representations on
our behalf, voicing your opposition to the way that National Grid
is behaving. Please contact:
Mr Steve Holliday
Chief Executive
National Grid
1-3 Strand
LONDON
WC2N 5EH
Email: steven.holliday@ngrid.com
We will continue to update you as necessary. However, time is of
the essence and your support is urgently required and will be
greatly appreciated.
Yours faithfully,
NewcastleShared Services Centre
Employees