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21 September, 2009
The profitable electrical and gas distributor National Grid Plc. has provoked industrial actions in the UK with plans to outsource service work to India. British trade unions GMB and Unison, representing some 2,500 workers, are planning further strike actions in company operations in the near future.
The first such strike, a 24-hour one, occurred on 11 September when workers at a service center in Newcastle walked off jobs and manifested at a public square. Some 181 invoicing, procurement, and other jobs could be lost in Newcastle if National Grid gets its way to offshore jobs. Hundreds of other jobs are at risk in the company fulfills its planned agenda.
Further job actions likely will occur in Warwick and Newcastle. National Grid is the major owner and operator of electric grid distribution and gas distribution in England and Wales, serving 52 million customers. It also controls lucrative electric and gas distribution networks through its private enterprises in the US.
GMB National Secretary Gary Smith says it is “absolutely immoral” that the company would consider turning its back on UK workers and transferring work to India. “It is a shameful example of corporate greed that a hugely profitable UK business is threatening to sack loyal and dedicated staff.”
National Grid posted profits of £3 billion in 2008 and the company and workers have identified £3 million in cost savings. Yet, National Grid has already narrowed a search to two contract companies that would outsource the service work to India.
GMB and Unison are getting strong support from North American ICEM affiliate Utility Workers Union of America (UWUA). In a recent trip to the US, Smith met with UWUA-represented workers employed by National Grid subsidiaries in the state of Massachusetts, and engaged first-hand with the UWUA in is first contract battle with waste-to-energy company Covanta. ICEM-affiliated GMB, as well as other UK unions, have assisted the UWUA in bringing to light Covanta’s derisive anti-worker practices in the US just as the company attempts to expand into the UK.
In a letter to GMB’s Commercial Services Section, UWUA President Michael Langford called National Grid “one of the most profitable, privatised monopolies in the world.” He added, “In our view, it is unacceptable (for the company) to turn its back on the employees who have sacrificed so much to make National Grid a success.”
On 7 September, GMB and Unison counted ballots, revealing a 97% vote for industrial action. Those strikes likely will occur in the coming weeks if the electric/gas distributor does not retreat from its outsourcing plans.