Parliament
John Prescott

Union offshore outsourcing moans 'unfair'

Deputy PM Prescott says trade unions should stop blaming India for job losses

Rachel Fielding

Trade union Amicus has hit back at suggestions made by deputy prime minister John Prescott that unions are unfairly criticising offshore outsourcing firms.

Prescott's remarks were reportedly made at a reception hosted by the Labour Friends of India at Labour's party conference in Bournemouth last week.

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"The trade unions here must show a sense of fairness towards India vis à vis winning outsourcing deals from some of Britain's biggest firms," said Prescott, according to a report in the Economic Times of India.

"The furore is unfair and India must be given a chance to develop its skills and markets."

But Lee Whitehill, a spokesman for Amicus, insisted: "We're not blaming India. We're blaming companies already making a profit in the UK who are moving to India at the expense of skills in the UK.

"People think it's just about call centres, but all back office processing, underwriting, legal advice, IT support - the jobs that are the bread and butter of many of the UK population - are being put at risk.

"It's not just about spreading concerns, it's also about looking at the long term and finding solutions."

Amicus is not the only union to voice concerns about the impact of outsourcing on the UK economy. This week finance sector union Unifi threatened to hold strikes at British banks that fire staff to move jobs to India.

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Further reading

IBM

IBM staff in offshore outsourcing protest

Workers stage rally at company AGM against offshoring of 'thousands' of US jobs

Banks follow Barclays' union deal lead

High street names expected to negotiate similar outsourcing protection for staff

Europe bucks global outsourcing trend

Contracts worth more than €200m up 83 per cent on 2002

Offshore outsourcing

An opportunity to improve business processes, or a danger to the UK's IT industry? The outsourcing issue continues to provoke lively debate.

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