Ballot call on Qinetiq pay freeze

Qinetiq was floated on the stock market in February 2006

Staff at defence research firm Qinetiq are to be balloted on strike action in protest at a pay freeze.

Unions said their members would be asked to vote over the next few weeks amid claims that executives are to receive bonus payments.

The group employs more than 7,000 staff in the UK, with sites in Hampshire, Worcestershire, Wiltshire, Portsmouth, Devon, Glasgow and Dorset.

Qinetiq said the freeze was right in current economic circumstances.

David Luxton, national officer of the Prospect union, said: "Qinetiq's justification for the pay freeze does not hold up to close scrutiny.

"It continues to be a highly profitable company both internationally and in the UK with a backlog of secured work worth £5.4bn.

'Absolute scandal'

"While the growth in the UK business has been less than its overseas business, there is underlying revenue growth and profitability, generated through the hard work and intellectual excellence of the Qinetiq workforce.

"Bonus entitlements only apply to directors and senior managers. If they are to be rewarded for performance for the previous 12 months, then why should the same principle not apply to all Qinetiq employees?"

The Public and Commercial Services union said staff were angry that the company was using the recession as an excuse to freeze pay.

General secretary Mark Serwotka said: "It is an absolute scandal that Qinetiq will give its senior managers huge bonus payments while offering staff absolutely nothing.

"Senior executives have made millions out of the controversial privatisation of Qinetiq and enjoyed returns of up to 20,000% at the expense of the taxpayer, whilst using the excuse of the recession to freeze pay.

Pay increases

"If they want to avoid the threat of industrial action they need to quickly come back to the negotiating table."

A Qinetiq spokesman said the firm was "extremely disappointed" at the ballots and was committed to continuing constructive discussions on pay.

"Our decision not to award a blanket inflationary annual pay increase is the right one in the current economic circumstances."

Qinetiq said it would be awarding pay increases for the current year to all UK employees who have been assessed as "outstanding" or "exemplary" under the company's performance management system, while a profit-sharing scheme covering all employees was being introduced.