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Techies at Qinetiq, the defence technology firm, are considering going on strike over a workforce-wide pay freeze that would not to apply to directors and senior managers. Unions representing about half of the firm’s 8,000-strong UK workforce said the prospect of a walk-out was now in the hands of members, who are being balloted. Affected staff, including IT and engineering personnel, said the firm was using the recession as an excuse to freeze pay, as bonuses were still incoming for management. David Luxton, of Prospect, with 2,000 members affected, reminded that Qinetiq was a “highly profitable” company with a backlog of secured work worth £5.4billion. Ahead of its full-year results on Thursday, the Public and Commercial Services union said the firm would report underlying profit of £127million, up from £106m in 2007. Mark Serwotka, PCS general secretary, said: “It is an absolute scandal that Qinetiq will give its senior managers huge bonus payments while offering staff absolutely nothing. “Senior executives have made millions out of the controversial privatisation of Qinetiq and enjoyed returns of up to 20,000 per cent at the expense of the taxpayer”. Qinetiq’s overseas business has grown steadily in recent years, though growth for its UK arm has suffered, mainly due to an ongoing decline in government research budgets. However, its chief executive Graham Love has said bonus entitlements, only applicable to directors and senior managers, will continue this year. Mr Luxton asked: “If they are to be rewarded for performance for the previous twelve months, then why should the same principle not apply to all Qinetiq employees?” The firm has argued that ruling out a blanket pay rise for rank-and-file employees in the UK is a necessary response to the current economic climate. But unions said Qinetiq’s refusal to carry on talks leaves the company open to the threat of strike or industrial action, potentially disrupting its defence operations in early June. The Ministry of Defence is the biggest client on the books of the company, which runs 40 UK sites with major technology facilities at Farnborough, Boscombe Down and Malvern. If it bans basic pay rises, Qinetiq will join the 20 per cent of employers which have frozen the wages of their employees in the past three months, according to Incomes Data Services. Yet the research shows more than a third of employers so far this year have increased wages by between three and four per cent, despite freezes remaining more likely overall. IDS said: “While the proportion of freezes has increased significantly, in line with the altered economic circumstances facing many firms, the changes at the other end of the range of settlements are less stark. “In particular, the proportion of settlements between 3 and 4 per cent has held up remarkably well, in comparison to 2008, and still stands at over a third of awards.” May 19, 2009 Email this article Printer friendly page Previous Page
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