Npower Announces Cut of 1,400 UK Jobs
By Anne Lewis-Schneider
German company RWE has announced that more than 1,400 jobs will be cut in the UK and will be outsourced to India. The jobs that will be cut are customer service and office based and will greatly affect those employed in that facility. Two companies, Tata Consultancy Services and Capita will take over these positions in a massive £120 million contract to run over the next seven years and 540 existing staff will be transferred to the new company.
RWE has further made it known that a total of 6,750 jobs will be cut across Europe as the crisis in the Energy industry in Europe takes hold. Paul Massara who is Chief Executive of RWE has said that the job cuts are absolutely necessary if they are to be able to deliver the service that they feel is due to their customer base. Of late Npower came in last in a survey on customer service. Npower announced a price increase in October that added 10.4% to household fuel bills per annum.
The Big Six Energy Companies have all announced increases in electricity and gas costs which have left British households worried about being able to keep warm this winter, as many of them cannot meet the new prices without cutting back on essentials such as food. Hardest hit will be the Central England Stoke-on-Trent offices of Npower which will be closing down with a job loss of 550 employees. There are currently approximately 11,000 employees of Npower in the UK, mainly in the retail side of the business.
With Energy already at the top of the political agenda at the moment, this announcement is going to put a damper on Christmas for those who are to be made redundant. One wonders what this will do to the reputation of Npower which has already seen demonstrations at its offices in London due to severe constraints placing many of the British public into fuel poverty, having to make decisions on being warm or feeding the family.
The Unions are up in arms about the job cuts and have warned that this could backfire badly if allowed to continue. The job market in the UK is tough as it is and people are going to find it very difficult to get new jobs. Employees have been waiting for weeks to hear who will be cut from the workforce. Not only have jobs been cut, but plans for a wind farm in Bristol have been halted and plans to build a new nuclear facility in the UK have also been put on the shelf.
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