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CSC announces further 640 job cuts

More than 1,100 jobs to go in total

CSC has announced a further 640 redundancies in the UK, bringing the total number of job losses at the company to 1,140 since February.

It said that the latest round of job cuts was "separate and independent of our NHS consultation".

A spokesperson for CSC said: "This action is necessary because the IT services market is changing, and our customers want competitive, new services, with different contract and delivery models.

"Through voluntary redundancies and redeploying people within other parts of our business, we hope to achieve a significant reduction without the need for compulsory redundancies."

CSC pledged to follow a voluntary redundancy programme when it announced in February that it would be cutting up to 500 staff after booking a £943 million charge on the NHS's failed, £12.7 billion National Programme for IT (NPfIT).

Yet, according to Unite the union, the company is insisting on compulsory redundancies in the initial round of job cuts, which affect staff working on the delivery of the Lorenzo-based electronic patient record system under the NPfIT.

CSC workers who are members of Unite went on a lunchtime protest last week over the compulsory redundancies plans.

Unite said that the 640 additional redundancies have come "out of the blue".

Kevin O'Gallagher, Unite national officer, said: "This announcement of a further 640 job cuts has dealt our members a severe body blow and left them absolutely devastated.

"We have put forward a detailed plan, which will avoid any compulsory redundancies in the company. However, these plans have not been taken up and CSC is insistent on issuing compulsory redundancy notices despite receiving sufficient number of volunteer requests to leave the company."

In addition, O'Gallagher said that the union was "disgusted" by the National Outsourcing Association's (NOA) support for CSC's redundancy plans.

"The NOA has taken no consideration for the fact that the union plans to allow for voluntary redundancy rather than compulsory redundancies. It also did not take into account, that from day one of the [initial] consultation, CSC has guaranteed all its workers in India their jobs regardless of expertise or level of skills," he said.

CSC confirmed that it had started a formal 90-day consultation process on the 640 job cuts.

It added: "CSC remains fully committed to the UK market. We are confident that these carefully targeted and managed reductions will not impact the overall quality of service we provide to our customers."

Meanwhile, the Public and Commercial Services (PCS) union, has warned that industrial action may take place in response to the Ministry of Defence's decision to award preferred bidder status in a £100 million a year payroll outsourcing contract to CSC.

The union claimed that the award was made on the basis of cost alone, and suggested that CSC might not be able to meet its obligation under the contract. The decision to choose CSC shocked MPs and analysts.

Meanwhile, the Public and Commercial Services (PCS) union, has warned that industrial action may take place in response to the Ministry of Defence's decision to award preferred bidder status in a £100 million a year payroll outsourcing contract to CSC.


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