Firstsource workers could lose redundancy payments over dispute

A number of Firstsource employees in Derry are facing the prospect of redundancy for the second time in just under two years.

Based in Springtown Business Park in the city, the call centre handles customer services for a number of companies.

In July 2023, Firstsource announced 200 redundancies - 100 in Derry. A year later, it announced 63 redundancies - 50 in Derry. 

On March 6, Firstsource announced to the YouFibre team in Springtown it was going to be impacted by TUPE transfer; broadband provider YouFibre was transferring jobs from Derry to its call centre in South Africa. 

TUPE [Transfer of Undertakings (Protection of Employment) Regulations] is designed to protect employees if the business in which they are employed changes hands. Its effect is to move employees and any liabilities associated with them from the old employer to the new operator by operation of law.

The following day, the employees concerned received ‘at risk’ letters from Firstsource, a copy of which has been seen by The Derry News.

The letter said: “We have been informed by our client, YouFibre, that effective from April 7, 2025, they will be transitioning the work we currently deliver to a new, yet unnamed client base in South Africa.

“This change will prompt a subsequent TUPE transfer. 

“We understand that this news may bring about questions and concern. Please be assured that we are committed to supporting you through this transition. We will be consulting with colleagues about the changes and are currently waiting on confirmation from the client regarding the new provider, so that we can start the process. However, due to the work transferring to a provider in South Africa, we will be placing staff at risk of redundancy.”

According to one employee “uncertainty due to a lack of clarity around YouFibre’s absolute failure to engage in the TUPE process is extremely stressful and is causing great anxiety”.

On March 13, representatives of the Derry YouFibre team held a meeting with Firstsource. At that meeting it was confirmed the TUPE process was applicable. Firstsource also advised those affected they were entitled to statutory redundancy and payment in lieu of notice. 

The representatives also requested an update on the name of the company linked to TUPE in South Africa as this had not previously been provided. In addition, they enquired if an exit clause had been triggered as YouFibre was withdrawing from its contract with Firstsource 18 months early. Firstsource would not discuss this with the representatives, describing it as “commercially sensitive”. 

The representatives then questioned why the redundancy package offered to the Youfibre team was considerably lower than the offer made to them and their colleagues when Sky completed TUPE to Bulgaria in 2023; the workers affected then were awarded 23% on top of their redundancy and payment in lieu of notice payments.

The Firstsource employee told The Derry News, one and a half years after showing loyalty to the company during the 2023 round of redundancies, they would leave with less than they could have obtained then.

Enhanced redundancy offer made to Firstsource employees

Negotiations ongoing at company

“At that time we were also approached to help in bringing YouFibre to Derry.

“This is why the workers affected by this latest redundancies are seeking at least 23% additional payment,” they added.

However, Although Firstsource has advised workers that TUPE does apply, YouFibre disagrees and is refusing to engage in the process; this means that Firstsource is effectively unable to discuss the additional payment of 23%, paid to workers made redundant in 2023. 

Firstsource has told the workers it will not provide any additional payment; Firstsource also indicated to those affected it had exhausted all avenues, both from client and a legal perspective. The company then closed the collective consultation in spite of the fact this was not agreed with staff representatives or those affected by TUPE. 

Firstsource has offered the affected workers: redeployment; redundancy; or TUPE - transfer to South Africa. The YouFibre calls are now being handled by the African company Nutun.