Fujitsu staff working at HM Revenue & Customs (HMRC) will walk out for two days this month after union members voted for industrial action in a pay dispute.
Staff directly employed by HMRC, but doing similar jobs to Fujitsu colleagues working alongside them as part of an outsourcing deal, received a much larger pay rise, according to the union representing the Fujitsu employees.
Over 300 workers at the government department will walk out over two days in strike action over pay, after Public and Commercial Services (PCS) union members voted to strike.
Fujitsu has faced heavy criticism as a result of its involvement in the Post Office Horizon scandal and there have been calls for it to be replaced on government contracts, so for many critics the dispute will be seen as another damaging indictment of the Japanese IT giant’s UK business.
The strike at HMRC coincides with the 31 January deadline for online self-assessment tax returns, but HMRC said this will have no impact on people submitting returns because Fujitsu workers are striking and not HMRC staff.
The Fujitsu workers, based in Telford and other offices across the UK, will strike on 30 and 31 January after being offered a pay rise of just 1.5%, according to the PCS, which added that “their in-house colleagues received 5% for doing similar jobs”.
Unfair pay offer
PCS general secretary Fran Heathcote said: “There is no excuse for workers employed by Fujitsu being offered less than those employed directly by HMRC. If the government was serious about its pre-election pledge to bring in the ‘biggest wave of insourcing in a generation,’ now is the chance to end the scandal of a two-tier workforce.”
Heathcote added: “It’s not too late for ministers to step in, resolve the pay issue and prevent strike action likely to play havoc with people’s tax returns.”
An HMRC spokesperson said: “We have robust plans in place to ensure we continue delivering critical services for our customers during any industrial action.”
Fujitsu had not responded to Computer Weekly’s questions when this article was published.
Fujitsu staff at HMRC also took industrial action in January last year when rejecting a 3-4% pay rise from Fujitsu after learning that employees working for the company in Japan were being offered salary increases of up to 29%.
Under pressure
Fujitsu is already under extreme scrutiny in the UK since the Post Office scandal reached the public conscience as a result of the ITV drama Mr Bates vs the Post Office, broadcast at the start of 2024. Its sales to the public sector have fallen dramatically since the supplier agreed with the government to cease bidding for new public contracts until the statutory inquiry into the scandal completed its work.
As revealed by Computer Weekly, prior to the festive period Fujitsu’s UK staff were sent a memo instructing them on aggressive cuts to spending on travel, recruitment, social and external organisations.
In its latest financial statement for the 12 months to March 2024, the company reported a loss of just over £170m, compared with a loss of £99m in the previous 12 months.
Fujitsu told its UK staff, in September last year, there would be no UK-wide pay rise this year as it prioritised a limited budget, fueling anger among a workforce with low morale.
