Business Weekly - Cambridge, UK

Peterborough was riding a jobs see-saw this week as two major employers took significant strategic decisions on their operations in the city.
Thomas Cook UK & Ireland’s decision to close operations at its Glasgow sales centre could mean more jobs for its Peterborough HQ, says the company.

While employees are being encouraged to relocate to Thomas Cook’s Falkirk sales operation, some of the work is credit control and Thomas Cook insists all 158 jobs need to be accounted for.

“These are real jobs and those that don’t transfer will be replaced, though whether its Falkirk or Peterborough, we can’t say until the end of the consultation,” said a Thomas Cook spokesperson.

“We want to transfer as many of them as possible.”

Thomas Cook currently employs 2,000 staff at its Peterborough headquarters and 400 in Falkirk.

Thomas Cook announced proposals that would see its Teletext, Panorama, Manos, Direct Holidays and Style sales centre operations and the Credit Control function relocated and combined within similar functions in its Falkirk and Peterborough sales centre locations and tour operating offices in Bradford.

The company conducted a review of its Glasgow and Falkirk sites and found that both have very low occupancy, 35 per cent and 60 per cent, respectively, and that by combining the two, the business would realise synergies in excess of £1 million per annum.

Elsewhere in the city, it has emerged that Diligenta will not be affected by the Pearl Group’s decision to relocate functions from its Peterborough and Glasgow offices to what is now the company’s main centre in Wythall, Birmingham, following Pearl’s £8.6 billion merger with Resolution.

Pearl did confirm that the majority of its 180 Peterborough posts would be moved to Wythall over the next three years with a small number staying at Diligenta, the Business Process Outsourcing (BPO) division acquired from Pearl by Tata Consultancy Services (TCS) for £486 million in 2005.

Pearl confirmed that as part of its long-term strategy for its life businesses, it will be amalgamating its three main business locations with Glasgow losing 300 jobs.

“We need to build a business which is vibrant and efficient both today and into the future,” said Pearl chief executive, Jonathan Moss. “This move helps us do this by creating a single main site of scale.”

Graham Goddard, the deputy general secretary of Unite has called for the Pearl Group to give the union more detail around the business rationale for the decision and reiterated it’s opposition to any compulsory redundancies.

“The announcement today by the private equity firm, Pearl Group that it is to close its’ Glasgow and Peterborough offices is a slap in the face to a highly skilled and loyal workforce,” said Goddard, adding that “Unite members are shocked and many are angry to hear that both sites are to close.”