Workers in firing line after telecom giants link up

Sep 9 2009 By Adam Jupp, The Journal

THOUSANDS of North East call centre jobs are in jeopardy after the merger of two mobile phone firms.

Orange yesterday announced it is joining forces with T-Mobile in a move which has implications for the job market across the region.

Orange currently employs around 5,000 people at its sites in North Tyneside and Darlington, while T-Mobile has a base at Doxford Park, Sunderland, where around 600 work.

As part of the merger arrangement there are plans to make cost savings of more than £445m from 2014, with cuts across both businesses in areas such as IT, marketing and advertising.

Orange and T-Mobile said their deal – due to be signed by November – would "bring substantial benefits to UK customers" and promised expanded network coverage, better network quality and improved customer services.

But unions and front-line workers have told of their concerns for future employment in the region. Andy Kerr, deputy general secretary of the Communication Workers Union, said: "There has been nervousness for some time in large T-Mobile call centres in Greenock, Merthyr and Docksford, Sunderland, with months of rumours about the future of the company.

"If this proposed takeover of one mobile firm by a larger one goes ahead we think we will be looking at job losses and possibly site closures of both call centres and retail outlets in a rationalisation programme.

"Our main aim at this time is to protect workers from the inevitable drive for efficiencies which a takeover will bring.

"It is crucial that Orange makes commitments over job security and is honest with staff regarding the implications of this takeover. Staff motivation and retention will be key to a successful and smooth operation."