Fujitsu has informed its UK employees that there will not be an across-the-board pay raise this year, citing the need to prioritize its limited budget. This decision has further exacerbated the already low morale among staff, who are discontent with the current situation.
The announcement was made on September 10 and follows a tumultuous eight months of public scrutiny concerning Fujitsu’s involvement in the Post Office Horizon scandal. The company’s message stated, “In prioritizing how to effectively utilize our limited pay budget this year, there will be no country-wide pay increases as there have been in recent years, and regrettably, most colleagues should anticipate not receiving a pay rise this year.”
Employee morale had already taken a hit due to the fallout from the scandal, and the news regarding pay has ignited further discontent. One insider remarked, “Employees are outraged with the leadership and have lost faith in their ability to address the ongoing decline. Trust is at an all-time low.”
Fujitsu responded to queries from Computer Weekly, stating, “UK employees have been informed about the pay review process. We refrain from making public comments regarding our pay review procedures.”
The company has faced considerable backlash after ITV aired a dramatization of the Post Office Horizon scandal, titled Mr Bates vs the Post Office, earlier this year. Since 1999, Fujitsu has supplied the Horizon software and provided support to the Post Office. This software contained significant flaws that resulted in accounting discrepancies, leading to wrongful prosecutions of subpostmasters. Fujitsu is accused of assisting the Post Office in concealing knowledge of these errors and blaming users instead.
From 1999 to 2015, hundreds of subpostmasters and staff were wrongly prosecuted based on evidence from Fujitsu’s faulty Horizon system, often receiving criminal convictions for accounting discrepancies tied to the software. Fujitsu’s involvement extended to providing testimonies in court, asserting that the system did not contribute to unexplained account shortfalls, despite evidence suggesting otherwise.
In the UK, Fujitsu has traditionally relied on its extensive public sector contracts, a legacy of its acquisition of ICL in the late 1990s. However, following the Post Office scandal’s widespread publicity in January, the company has seen a decline in public sector contracts, partly due to a self-imposed bidding halt and organizations opting to dissociate from the firm’s tarnished reputation.
Further financial difficulties may arise as UK MPs are now urging Fujitsu to contribute to the substantial costs linked to the Horizon scandal—a sentiment echoed by Fujitsu UK’s leader, Paul Patterson, who acknowledged the company’s moral obligation in this regard.
Fujitsu’s profitable contract for the Horizon system is also coming to a close, with complications in finding its replacement causing delays. Reports from May 2022 indicated plans to replace Horizon by 2025; however, there is now a likelihood that Fujitsu’s contract will be extended for another five years, alongside an additional £180 million from taxpayers.
In June, Fujitsu announced workforce reductions within its UK-based Oracle division as a cost-cutting and competitiveness strategy amid the scandal’s aftermath. This followed earlier announcements in April of layoffs affecting around 100 positions in sales, pre-sales, and logistics due to a declining outlook for the UK business.
The Post Office scandal was first brought to light by Computer Weekly in 2009, highlighting the harrowing experiences of seven subpostmasters, including Alan Bates, who suffered due to the flawed accounting software. It stands as one of the most significant miscarriages of justice in British history.
For further reading:
- Post Office and Fujitsu’s negligence leads to substantial final bill for taxpayers
- Key information regarding the Horizon scandal
- ITV’s documentary – Mr Bates vs The Post Office: The real story