Workers at outsourcer Capita have begun strike action in a dispute over their employer’s refusal to negotiate a pay award for 2024, with industrial action scheduled until 5 February.

The workers were due a 2024 pay award last April. According to union Unite, Capita postponed the annual pay talks with the assurance that the workers would be given a pay rise in October. It said this had not materialised despite this part of the business reporting profits and a healthy balance sheet.

In December 2024, workers voted overwhelmingly to take strike action across the two Capita sites. The industrial action started on Wednesday this week and involves around 1,000 employees.

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Unite general secretary Sharon Graham said: “This is a company that can fully afford to give its workers a decent pay rise but has cynically failed to do so to boost its profits.

“Capita should be under no illusions about the strength of feeling of Unite members in its workplaces over pay. Our members at Capita will receive the union’s unwavering support.”

The Capita staff in Manchester and Glasgow work on the account of the financial services provider Royal London, which will face disruption and delays.

National officer, Dominic Hook said: “Capita has had months to sit down with Unite to negotiate with the union to ensure its workforce receive a fair pay deal for 2024. If the bosses at Capita think hiding from their staff will make this issue go away, they should think again.

“Because of the lack of action by management, the Capita contract with Royal London and will now face delays and disruption.”

A Capita spokesperson said: “We have plans in place to mitigate the impact of industrial action, we have met with union representatives to further discussions but disappointingly we have not been able to resolve positively.”

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