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IT outsourcer Fujitsu Services loses pay disclosure battle with union

Antony Savvas | Nov. 10, 2014
Fujitsu Services (Engineering Services) Limited (FSEL) will have to reveal its pay structure.

Unite union members at technology outsourcer Fujitsu Services, who said they "feared being undercut by less expensive employees", are celebrating a victory at the Central Arbitration Committee, which has ordered Fujitsu to fully disclose its pay structures.

Unite had made a request to Fujitsu for disclosure of information on the pay structure of one of its subsidiaries, Fujitsu Services (Engineering Services) Limited (FSESL). Unite suspected Fujitsu was using engineers employed by FSESL on certain work, which it could pay less to in preference to other engineers it employed. In particular, it was suspected Unite members at Fujitsu were losing out to FSESL employees on overtime.

Manchester-based Fujitsu Services dismissed Unite's request and told reps that Unite was not entitled to the information on the basis that FSESL was a separate legal entity which does not recognise Unite.

Following Fujitsu's rejection to the union's request, Unite complained to the statutory Central Arbitration Committee (CAC), which agreed to hear the case. The CAC concluded that FSESL was established and continues to operate as an extension to the services provided by Fujitsu, and for that reason was part of Fujitsu's workplace undertakings. As such, the CAC declared that Fujitsu should disclose the pay structure of FSESL.

Unite executive director for legal, membership and affiliated services Howard Beckett said: "This is a significant step forward for our members in Fujitsu but also a significant step forward for the trade union movement as a whole. Unite is leading the challenge to employers and Unite legal services are using all jurisdictions to ensure the best representation for our members.

"This decision goes to show that employers cannot hide behind separate legal entities to deny our members the information they need to consider pay offers."

Fujitsu has confirmed it will comply with the CAC ruling, and release the pay structure information requested.


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