Energy firm jobs under threat

JOBS at the National Grid in Warwick could be under threat, with unions fearing hundreds of cuts as part of plans to save millions of pounds.

National Grid has written to the GMB union saying it is reviewing its shared services operations in the UK, and has to find a minimum saving of £7 million by 2010/11 at its Warwick, Northampton and Newcastle sites.

And in its letter to the union, the firm said that the savings would involve job losses.

GMB said options put forward by National Grid as part of the review include consulting on redundancies and outsourcing work to another contractor.

Gary Smith, GMB National Secretary for energy, said: “This is a shameful example of corporate
greed that a hugely profitable UK business is threatening to sack loyal and dedicated staff. Hundreds of jobs are at risk at these three locations.

“This is despite recording profits of £3billion, and guaranteeing large bonuses to directors, and an eight per cent return to shareholders. Despite the profitability of National Grid, unions and staff have been working to identify savings to help secure jobs.

“Over £3 million in savings have been identified, and although the process has not yet been completed, senior management have now indicated that this will not be enough, and jobs will go.”

The letter comes as members of the GMB and Unison at the firm’s site in Newcastle upon Tyne announced plans to stage a 24-hour strike on Friday, after voting in favour of industrial action over plans to outsource work – which the unions believe will lead to job losses at the firm’s offices in Warwick and Northampton.

It is expected that more than 180 workers will rally in the city centre to voice their opposition to the company’s plans.

Mike Jeram, national officer of Unison, said: “Unison members have sent a very clear message to the company.

“When the company says they have not made a decision on the future of the Newcastle operation, their employees do not believe them.

“This is a tremendous vote in favour of industrial action, and it is time for the company to seriously start negotiating.”

A National Grid spokesman said: “We have a duty to make sure we are delivering our services to customers as efficiently and effectively as possible. Therefore we have been reviewing our internal support services right across the company.

“We have always said that National Grid has shared services functions at Northampton and Warwick which are subject to this review. But this is just one department, and the review of shared services does not
affect the majority of staff working at those sites.

“We recognise that these are sensitive times for employees, and we are supporting our staff in every way we can. No final decision has yet been made about the way forward. We have not taken any decisions to outsource any services, or close any location.”