Consignia to outsource its OH service in a bid to cut losses

first_imgConsignia to outsource its OH service in a bid to cut lossesOn 1 Jun 2002 in Personnel Today Congignia hopes to improve services and save money by using SchlumbergerSemato provide OH servicesConsignia, the troubled company behind Britain’s postal services, is poisedto outsource its occupational health service in a deal worth £70m. The deal is part of the firm’s three-year restructuring programme designedto stem losses of about £1.5m a day. Once signed, the five-year contract will see Schlumberger Sema, part ofFrench conglomerate Sema, take over the provision of OH services to Consignia’s220,000 staff. This includes pre-recruitment assessments, ill-health referrals and medicalretirement assessments. The OH team also offers preventative services such ashealth promotions and training. The company’s 240 occupational health staff will transfer toSchlumbergerSema on their existing terms and conditions, as required under TUPE(Transfer of Undertaking Protection of Employment) regulations. Consignia said it had decided to outsource the service because it was not acore part of its business. Overall, the company hopes to save £60m a year for10 years through a series of similar outsourcing agreements. Malcolm Kitchener, managing director of business services at Consignia,stressed the deal would not mean any downgrading of the service Consigniaemployees received. In fact, it was likely to improve, he argued. “Consignia’s OH service will be working with a major and focused playerin the OH market. There will be wider opportunities. There is quite an air ofexcitement about the prospect of joining SchlumbergerSema,” he said. OH nurses would have access to better systems and technology and SchlumbergerSemahad pledged to spend £5m upgrading the OH systems. They would also be able towork with clients other than Consignia, he added. Comments are closed. Previous Article Next Article Related posts:No related photos.last_img read more