Diligenta contact center workers strike over UK pay dispute
LONDON, UNITED KINGDOM — Around 1,000 contact center workers at financial services outsourcer Diligenta began a week-long strike last January 12, escalating a pay dispute that union leaders say could disrupt services for major United Kingdom financial firms and further strain the outsourcing sector.
According to the report of contact-centres.com, members of Unite, the UK’s largest union, walked out at 12:01 a.m. on Jan. 12 at Diligenta sites in Liverpool, Glasgow, Reading, Edinburgh, and Stirling.
Unite positions itself as a modern union built for today’s workforce, tackling the biggest challenges facing working people. It is a democratic, activist-led organization that stands up for employees on the job, defends workers’ rights, and works to extend trade unionism to millions of workers who are not yet organized.
The strike ran through 11:59 p.m. on January 18, with additional industrial action expected if the dispute remains unresolved. Workers at Diligenta’s head office in Peterborough will also be balloted for possible strike action, widening the scope of the conflict.
Unite pay dispute triggers week‑long UK strike
The latest strike follows five days of industrial action held in November and December. Unite said the escalation reflects growing frustration among workers after what it described as a lack of meaningful engagement from management on pay negotiations.
The union argues that employees are effectively facing a real-terms pay cut, despite Diligenta’s continued profitability.
According to Unite, management has been given repeated opportunities to put forward a fair pay offer but has failed to do so, leaving workers with little option but to intensify action.
Unite General Secretary Sharon Graham said the company had underestimated the mood of its workforce.
“Diligenta has failed to grasp the depth of anger among its workforce,” Graham said.
“Imposing a real-terms pay cut on workers while making millions in profit and continuing to reward shareholders is completely unacceptable,” Graham added.
Unite said further industrial action will be announced if talks do not resume, signaling that disruption could extend beyond the current week-long strike.
Impact on major financial services clients
Diligenta provides outsourced contact center, back-office, and complaints-handling services to some of the U.K.’s biggest financial services firms, including Lloyds, M&G, Aviva, and Phoenix.
Unite issued a warning, predicting significant disruption to customer service operations and complaints processing for these clients due to the walkout.
The conflict has made it more difficult for banks and other financial organizations to maintain their high reliance on outsourcing partners. These partners usually handle large volumes of customer interactions, especially during market uncertainty and when regulations are strict.
Outsourcing and contact centers face labor pressure
Any prolonged interruption could lead to delays, service backlogs, and reputational risks for both the outsourcer and its clients.
On a wider scale, the strike throws a spotlight on the increasing conflicts within the outsourcing sector, where the rising cost of living, the shortage of available workers, and the greater volume of work are challenging efforts to manage costs.
As contact centers play an increasingly central role in customer experience for banks and insurers, disputes like the one at Diligenta underscore the challenges facing outsourcing providers as they try to balance cost pressures with workforce stability—a test that could shape labor relations across the sector in the months ahead.
