Leeds O2 staff to transfer to outsourcing group Capita

AROUND 1,200 Leeds O2 staff will transfer to outsourcing group Capita under the terms of a deal affecting 3,700 staff nationally.

The company, owned by Spain’s Telefónica, said the changes were a response to the decline in the number of people calling customer service centres.

It will affect around half the employees at the Leeds site.

O2 has stressed there will be no compulsory redundancies, although there is a voluntary option and the Communication Workers Union (CWU) says the firm is looking to cut 600 posts.

Those who transfer will continue to work in the same offices and have the terms and conditions of their jobs guaranteed for two years.

A spokesperson said the move would give the staff greater job security because Capita has a string of customer service contracts with other major companies. But the CWU accused O2 of betraying the staff “who have built the company”.

A further 955 staff will transfer in Glasgow, 734 in Bury, and 828 in Runcorn. Capita will also take on the leases at the four buildings.

O2 said it was handling a million fewer calls a month than two years ago because customers are using online services or interacting through social media. It plans to invest £31m on serving customers “by digital means”.

Feilim Mackle, sales and services director at Telefónica UK, said: “Soaring smartphone usage and mobile internet has fundamentally changed what people expect from customer service. Customers want a broader and more flexible way to contact companies. That’s why O2 has today announced a comprehensive plan to make sure we continue to serve our customers in new, innovative, digital ways and maintain our leadership in customer experience.”