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Half UK workers see a bright side to 'being outsourced'

But they worry about pensions and stress

Tags: tupe, outsourced, pensions, outsourcing

By Ron Coates

Published: 10 June 2003 16:19 BST

Just over half of UK workers see being outsourced as career enhancing but most of them don't know or understand their rights.

And many speak from experience: 27 per cent have been outsourced and a further 14 per cent have a friend or relative who has. In IT, 40 per cent have been outsourced. These figures come from a survey by Cap Gemini Ernst & Young, the consulting, technology and outsourcing company.

The survey found 51 per cent of workers thought being outsourced would enhance their career options, almost half thought that it would give more access to training, a third thought it would bring improved pay and 43 per cent felt that it would give them a chance to work alongside industry-recognised specialists and experts.

But the respondents could also see the downside. Over two-thirds were concerned at loss of job security. And just under 40 per cent feared lower pay, with 52 per cent expecting to lose pension rights. Many thought that it would mean more work and stress.

CGEY wants more outsourcing work but is concerned that workers don't know their rights under TUPE (Transfer of Undertakings (Protection of Employment) Regulations). And it feels that organisations have a heavy education task ahead.

A company spokesman said: "We were surprised that so many didn't understand their rights. In IT, 43 per cent had never heard of TUPE, around 25 per cent had, with only 11 per cent fully understanding [what TUPE means]."

TUPE provides strong safeguards for jobs. There is, for example, a guarantee of full continuity of employment but the safeguards for maintaining terms of contracts are not as strong as they might be.

And the 52 per cent of people worried about their pension are quite right. Occupational pension schemes are specifically excluded from the regulations. And, while these may be individually or collectively negotiated with a new employer, pensions are certainly at risk.

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