Amicus, the trade union, is campaigning against Prudential's decision to close three offices in Belfast, including its administration office, which could lead to the loss of around 500 jobs. The union have claimed that moving the jobs to India is 'an act of corporate irresponsibility', demonstrating that the decision to close the offices highlights Prudential's lack of commitment to the UK. They have argued that the provider received a £2 million government grant to create and maintain the jobs in Belfast.
Prudential has said that consultation is ongoing and phased closures will run from 2006 to 2007. It expects one third of its jobs to transfer to Mumbai.
Our view
Given that this Government keeps piling even more misery onto employers, is it any wonder that they are looking overseas to keep costs down? Examples of the misery that is putting many employers out of business:
Longer Maternity leave, Paternity leave (i.e. Dads), Employers paying for Statutory Sick Pay (and not Government), minimum wage increases each year, Disability Discrimination rules, Age Discrimination rules, new proposals to increase holiday entitlement to 28 days (from 20) and also now proposing to force employers to pay in 4% (over £800 a year) to a national pension scheme for employees, this is on top of the already nearly 13% Employers National Insurance they have to pay (on top the employee's National Insurance of over 11% the fund via pay) to pay for social services and state pensions, plus between 19% and 30 % taxes on profits and 17.5% VAT on most things they sell.
There really is not a lot left for the boss! (particularly small businesses). We agree that we cannot afford to see firms moving overseas - but do you blame them?