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PRESS RELEASE

1 of 3 pages

Monday 27th July 2009

 

Immediate Release

Attention: News desk, Utilities Industrial and Political Correspondents

 

JUDGE DESCRIBED THE NATIONAL GRID AS "PROFLIGATE"

As GMB Members At National Grid Stage “Ferrari” Demonstration At Company AGM Against Exporting North East Jobs To India

 

As GMB members demonstrate at National’s Grid’s AGM in Birmingham against National Grid’s plans to off-shore 86 north east jobs from Newcastle, the joint Unions, representing thousands of National Grid workers, a Judge criticised National Grid as profligate. Last week in a multi-million pound fraud case Mr Justice Norris described the Company as "profligate" and suggested that the case was more about vindicating National Grid's management team than the recovery of compensation.

 

GMB and other unions are conducting an official strike ballot at National Grid Newcastle in a bid to stop 186 jobs being out-sourced to India. This follows on from 97% of these staff having already voted to take action in a consultative ballot organised by the Union in early June. GMB will announce the result of the ballot and the form of industrial action to take place later next month.

 

The company has also been caught paying for a Senior Executive to park his Ferrari in a dehumidified garage, known as "the hotel for fine automobiles".  Last year, as the Company promoted a greening of its image and whilst energy consumers struggled to meet their bills, National Grid were paying thousands of pounds for a Senior Executive to park his high powered car.  Unions believe that National Grid may face complaints to the Regulator, Ofgem, as a result.  Ofgem determines the funding formula for National Grid's operations in the UK.  Unions have also claimed that last year the company was compelled to insource critical functions back from India that had previously been off-shored.  Unions argue that National Grid has yet to declare how much the failures in the off-shoring of IT work actually cost.

 

The public is being urged to visit http://www.nationalgreed.co.uk to read more about National Grid’s plans and profits. Sign the petition and write to the Board.

 

The Newcastle site is part of the Company's Shared Services organisation carrying out invoicing, procurement and payroll activities. Staff are currently being balloted on strike action in Newcastle. Other employees across the company are also being consulted about the possibility of launching a campaign to prevent the off-shoring of work and their personal data.

 

In an unprecedented situation the Trade Unions have also rejected the Company's recent pay offer of 1% and a 1% non consolidated payment.  For the first time since privatisation the Company has proposed that the pay increase does not flow through to other premiums such as shift working allowances.

 

Gary Smith, GMB National Secretary said, "It seems that there is a crisis of  morale and strategic leadership at National Grid.  This is in effect a monopoly and as long as people need heat and light it will generate big profits.  As soon as there are some challenges in the financial markets the Leadership has been found wanting and they expect the workforce to pick up the tab whilst they have behaved in a profligate way.  Its big increases in bonus and pay for the Chief Executive, Directors and Chairman, whilst ordinary workers get faced with P45s.  This is the worst example of corporate greed."

 

Mike Jeram, Unison National Secretary, said "It is unprecedented to have so much unrest, the leadership of this company needs to get a grip and get around the table with the Unions to thrash around the issues"

 

Mick Tuff, Regional Officer, Unite said, "I have never known our members to be so angry, both about the company's plans to sack their colleagues and offshore their work as well as the derisory pay offer.  This UK company posted profits of nearly £3bn last year, 12% up on the previous year.  The workforce feels like they have been kicked in the teeth."

 

Ends

 

Contact: Gary Smith, GMB National Secretary on 07710 618909 or Joan Anderson, GMB Organiser on 07870 176732 or GMB Press Office: Rose Conroy on 07974 258123.

 

Notes to Editors:

This is the text of the Emergency Motion carried (Monday 15th June 2009) at the GMB Congress in Blackpool.

“National Grid Greed

Congress notes with dismay the announcement made at a meeting with GMB shop stewards on Friday 5th June 2009 of impending redundancies at national grid’s Newcastle site. congress further notes that national grid’s plans to close this site would destroy 181 local jobs in its shared services function in Newcastle, and that the company have consistently failed to rule out offshoring work currently carried out in Newcastle to low wage economies such as India. Congress believes this site closure is nothing but an act of irresponsible corporate greed, made possible by ofgem’s failed and discredited regulatory regime. Congress notes that National Grid recently announced massive global profits of £2,915 million in the year ending 31st march 2009, a 12% increase on the previous year. Notwithstanding these huge profits, staff and unions at Newcastle have been working with the company to identify further cost savings of £3m. Yet despite this, the company plans to sack these workers and offshore their jobs.

Congress condemn’s national grid’s actions in the strongest possible terms. it pledges full support to the workers in the fight to save their jobs, and calls upon the company to abandon this unnecessary and unjustified closure.

Congress calls for the CEC to instigate a national campaign of opposition to National Grid, by mounting local opposition to any planning applications submitted by the company throughout the UK.

Congress also recognises that National Grid is set to benefit financially from the huge investment required in the UK’s energy infrastructure, and therefore calls upon government ministers to intervene and support GMB members who are the victims of the company’s corporate greed by: • exerting the maximum possible pressure on National Grid to exercise some loyalty and commitment towards the Newcastle workforce that has helped it to become a successful and highly profitable business. • changing the rules by which Ofgem operates to ensure that in considering future funding rounds, socio-economic considerations are taken into account, such as the need to ensure companies retain skilled UK jobs.

Transco 1 Branch, GMB Northern Region”