Vodafone Offshoring Jobs

Vodafone Announces Offshoring of Jobs

As you will be aware the Communications Workers' Union held meetings in both Dublin and Dundalk recently to discuss Vodafone's decision to export jobs from its Call Centres in Dublin and Dundalk to Egypt and India. At these meetings members expressed a clear desire to take protest action against this decision by Vodafone to export these jobs and the Union assured members that they would be supported in the event that they exercised their democratic right to protest at Vodafone's decision.

It has come to the attention of the CWU that members who were considering taking protest action have been subjected to a campaign of misinformation and threats by some managers to discourage them from exercising their democratic rights. This is a further example of Vodafone's callous disregard for employees whose jobs they intend to export and the impact this decision will have on them and their families.

As a result of the actions of some managers the CWU has decided to conduct a ballot of Union members for official industrial action against Vodafone's decision to export jobs. In addition we will continue with our campaign to get Vodafone to change this decision.

Another matter raised at the meetings was the lack of clarity as to who will be affected by Vodafone's decision. The Union for its part has no further information on this other than the information already circulated to members on 27th May last which outlined the numbers involved and the areas which are Back Office, Mobile Data and Credit Management.

It is important for all members to bear in mind that regardless of what plans Vodafone have regarding who will be impacted, the bottom line is that if Vodafone achieves its objective of exporting these jobs currently based in Dublin and Dundalk, then based on the responses to questions put by the Union there is no guarantee that this is not the start of a process by Vodafone to disengage from Ireland and as such no job is safe!

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The Union met with Vodafone management on 27 May 2011. At the meeting management informed the Union of its intention to offshore 133 jobs to India and Egypt commencing in October from the following areas within Customer Operations:

Offshore 102 jobs from Mobile Back Office to India
Offshore 31 jobs from Mobile Data to Egypt (which equates to 85% of the work in this area)

These jobs cover both Vodafone directly employed people and Rigney Dolphin people, and extend across both MountainView and Dundalk.

In addition to the foregoing, it is intended to outsource 41 jobs from the Credit Management area to a company based in Cork.

In response, the Union vigorously expressed its total opposition to this decision by the Company, and while it is intended that Vodafone will offer redeployment opportunities in conjunction with a redundancy package to Vodafone employees, in the case of Rigney Dolphin employees however, Vodafone management informed the CWU that all these jobs will be surpressed.

The Union put the following questions to the Company:

1. Why is Vodafone offshoring these jobs?

Cost and quality.

2. Does Vodafone accept that customers currently receive an excellent customer service from employees in the area?

Yes.

3. What will happen to Rigney Dolphin employees who are losing jobs - will they be redeployed in Vodafone?

No.

4. What will be the terms of redundancy for Rigney Dolphin employees?

This is nothing to do with Vodafone, it is a matter for Rigney Dolphin.

5. Does Vodafone accept that they have a responsibility to Rigney Dolphin employees working in Vodafone?

Vodafone only has a responsibility to the business contract between Rigney Dolphin and Vodafone.

6. The Union requested that Vodafone postpone this decision to enable all parties to engage in discussions with a view to finding alternatives that will save jobs.

Request declined.

7. Can Vodafone guarantee the Union that further work/jobs will not be outsourced?

No.

8. What are the cost savings involved in offshoring these jobs?

Don't know.

The Union is deeply concerned that the actions of Vodafone management in this instance signals the commencement of a process whereby Vodafone will offshore further jobs into the future. This at a time when Ireland is in crisis with 400,000 people unemployed and where the Taoiseach and government are setting out their plans to retain and create jobs. Vodafone's contribution to this is to take valuable jobs out of Ireland while at the same time making substantial profits.

Under the terms of the agreement between Vodafone, CWU, and Rigney Dolphin it is the case that Rigney Dolphin employees are an integral part of the Vodafone operation and as such they have contributed to the success and profitability of the Company to date. The manner in which they are now being treated is despicable in that Vodafone is abdicating its responsibility to these employees.

The Union will vigorously oppose this decision and will use every means at its disposal to save jobs.

Luring Customers with Local Call Centers
Finding that the cost savings of offshoring are offset by losses in client retention and satisfaction, British companies are moving support operations back home.

Dáil Debate & Parlimentary Questions

Please find below a transcript which contains the Minister's response to questions posed by Gerry Adams, Sinn Féin, in the Dáil debate on Wednesday 1st June.

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Also, below are three more parliamentary questions submitted by Gerry Adams, the responses to which will be published here once they are available.

To ask the Minister for Education & Skills whether workers employed by Vodafone or Rigney Dolphin in Dundalk or Leopardstown receievd training under the Skillsnet programme; what amount of public money was expended on this training and will the Minister make a statement on the matter?
Gerry Adams TD

To ask the Minister for Enterprise Jobs & Innovation wehther Vodafone have been able to avail of tax exemptions or taxation expenditures since thier arrivale to the Irish market.; to list the various schemes that vodafone would have benefitted from and the cost to the exchequer of each scheme on an annual basis since thier arrival into Ireland.
Gerry Adams TD

To ask the Minister for Enterprise Jobs & Innovation whether any public funds have been received by Vodafone since they entered the irish market and will he make a statement on the matter?
Gerry Adams TD

Sean Kenny, the Labour Party TD for Dublin North East, has issued a statement criticising the plans by Vodafone to send 130 jobs out of Ireland.

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Clare Daly, of the Socialist Party / United Left Alliance, has issued a statement criticising the plans by Vodafone to export 130 jobs out of Ireland.

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To ask the Minister for Jobs, Enterprise and Innovation if he will intervene to try and save the 130 plus jobs at risk in Vodafone by meeting the CEO; and if he will make a statement on this important matter.
- Terence Flanagan

* For WRITTEN answer on Wednesday, 15th June, 2011

*R E P L Y*

Minister for Jobs, Enterprise, and Innovation (Mr Bruton)

I am very concerned about the job losses that have been announced and of the impact that they have had on the workers concerned and their families as well as the communities affected.

I understand that Vodafone Ireland, which is not an IDA or EI client, has announced this as a part of a review of its European operations and which will also impact on its operations in other EU Member States. I am advised, as part of this process, that the company has been in discussions with unions and its Irish Call Centre contract partner, Rigney Dolphin. I am aware that Vodafone has decided that a portion of the existing contracted call centre operations in Dundalk and Dublin will be moved to other locations - Egypt and India - within the Vodafone Group and to other specialist contractors in Ireland.

This decision will impact 45 Vodafone roles and 139 in Rigney Dolphin – the 139 staff are employed by Rigney Dolphin but are in-sourced to Vodafone and are based at its sites in Dublin and Dundalk. I have been assured that Rigney Dolphin will work through the implications of the redundancies with their employees.

I also understand that all impacted Vodafone employees will be offered the opportunity to transfer to alternative roles within Vodafone Ireland, and voluntary redundancy packages will be offered. A consultation process is now underway with all Vodafone employees affected by the decision to finalise the alternatives available. The changes to Vodafone Call Centre operations will take place in late 2011 and early 2012.

LETTER TO LABOUR PARTY FROM PAT RABBITTE TD