Unite, the largest trade union in the UK, has said that if CSC cuts jobs, it would adversely affect the NHS delivery system. This comes at a time when a US-based medical contractor is looking to enter the UK healthcare market.
CSC and HP Enterprise’s services arm are going to merge on 1st April. This merger will not benefit the employees as CSC is looking to reduce its workforce.
The merged entity will have annual sales of approximately $26 billion. CSC CEO Mike Lawrie will take over the helm of the new company, while HP Enterprise CEO Meg Whitman will be part of the board of directors.
It is anticipated that the merger will benefit the new company as it will save billions in operational costs. Trade unions in the country believe that it is the cost savings that are causing more than 1,000 employees to lose their jobs. This works out to about 22 per cent of the workforce in the UK. Previously, CSC had announced that it would be letting go of 440 employees.
Unite said that the sheer number of redundancies will have a negative impact on the delivery of services provided to the NHS. Unite’s Mike Eatwell said that a company cannot cut so many jobs without impacting its services or products. He believes that NHS services will worsen, considering that many of these services are already under a lot of strain.
Industry experts said that they would have to assess the claims made by Unite. However, with the UK Government looking to privatise certain NHS services, it is likely that after Britain exits the EU and the nation signs trade pacts with the US, it would open the NHS not only to medical contractors but also to other healthcare services contractors from the US.