New year blues at Telefonica as downsizing plans are confirmed

Telefonica UK

Nervousness at Telefonica following an ill-timed pre-Christmas announcement that 2020 would commence with headcount reductions across much of the business has given way to dismay after details of the proposed headcount reductions were revealed to staff on Tuesday.

The CWU understands substantial numbers of job losses are being sought across the business. Tuesday’s announcement confirms that most reductions will be seen in the Sales, Service and Retention directorate– particularly in the Recontracts Team in Preston Brook.

All 330 members of that team are in scope for a ‘hands up’ exercise to establish the number interested in taking Discretionary Voluntary Redundancy (DVR) – amid early indications that around a third of the team could be allowed to go if sufficient volunteers come forward.

Despite Telefonica’s UK insistence that this is a “voluntary exercise only and that the roles will not be placed at risk of redundancy”, urgent clarification was immediately sought by the CWU on the rationale for the headcount reduction given that overtime has been offered in both December and January

Despite robust company denials that any further work would be outsourced to Capita as a result of a reduced number of directly employed staff conducting retention work in Preston Brook, the CWU is seeking more information and data to substantiate management’s claim that call volumes have decreased by over 20 per cent in the last half of 2019.

Assistant secretary Sally Bridge explains: “Statements about falling call volumes – citing regulatory changes that have allowed customers to order PAC codes via a text message  on top of an increasing move by customers to digital solutions–  are being challenged by the union, because if the work has indeed gone it is hard to understand why staff have recently been offered overtime.”

Sally continues: “While it’s fair to say that a far more robust business rationale has been provided for the much smaller number of job losses being proposed in other Telefonica directorates, both the CWU and Prospect have also expressed deep concern at the company’s simultaneous announcement that changes are being made to Telefonica’s DVR package.”

Both unions have pointed out that the less attractive DVR offering will do nothing to help incentivise sufficient numbers to opt to leave the business under voluntary terms.

Sally concludes: “The CWU has already made it clear to management that any other means of reducing the workforce will not be acceptable to the CWU.”