January 26, 2007 06:12 ET


LONDON, UNITED KINGDOM--(CCNMatthews - Jan. 26, 2007) - Co-operative Financial Services (CFS) officially signed the Agreement of Principle yesterday evening (25th January 2007) with the Trade Unions (Amicus, Naco and TGWU) which provides clear coherent guidelines that form a workable benchmark for any future outsourcing agreements.

CFS and the joint Trade Unions have agreed an approach to organisational change that may consider outsourcing and some fundamental principles that will apply in these instances. These principles will not replace any existing CFS processes and/or procedures, and are based on best practice adopted in recent initiatives.

The principles are designed to provide employees with the reassurance that, if affected by any future agreements, the successful process to date to outsource Life and Savings Administration to Capita and the outsourcing of IT Development and Delivery to Xansa will be adhered to.

David Anderson, Chief Executive of Co-operative Financial Services, Cathy Wilcher, Director of Human Resources at Co-operative Financial Services, plus representatives from CFS Employee Relations, Amicus, Naco and TGWU were all present at the agreement signing which took place at the Head Office in Manchester.

David Anderson, Chief Executive of Co-operative Financial Services (CFS), said: "We are delighted to have signed the Principle Agreement with the unions. We have worked very closely with Amicus, Naco and TWGU to ensure we provide our staff with a level of assurance when part of an outsourcing agreement.

"The principles set out in the agreement are jointly recognised as best practice by all parties and underpin CFS' values and commitment to corporate social responsibility."

Amicus Regional Officer, Hugh Jones Glass added: " We believe that this agreement with CFS sets a benchmark for managing outsourcing agreements. It ensures that unions are involved in the decision making process at the earliest possible opportunity enabling Amicus to influence the outcome of CFS' discussions with 3rd party partners.

"The deal emphasises corporate social responsibility not just for CFS but for the 3rd party partner as well, and maximises the retention of skills and experience in the UK."

Notes to Editors:

- Co-operative Financial Services (CFS) is an Industrial and Provident Society, which brings together Co-operative Insurance (CIS), The Co-operative Bank and the Internet bank smile under common leadership. It is owned by the Co-operative Group Limited, which is, in turn, the largest consumer co-operative in the UK, democratically run for the benefit of its members.

- Life and Savings Administration outsourcing to Capita - This project consisted of an outsourcing agreement between Capita and CIS that saw CIS's Life and Savings Administration business transfer to Capita under Transfer of Undertakings (Protection of Employment) Regulations (TUPE) in late 2007. All new Capita employees will be based within property currently occupied by CIS in Manchester city centre.

- The Capita Group Plc is the UK's leading provider of integrated professional support service solutions. The Group's service capabilities encompass customer services, financial services, human resource services, software services, systems and strategic support and property services delivered to both public sector and private organisations. With over 26,000 employees at more than 250 offices across the UK and Ireland, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2005 of GBP 1,436 million.

Contact Information

  • Co-operative Financial Services Press Office
    Lisa King
    Tel: 0161 827 5630
    0161 832 2751 (FAX)