Printer Friendly
The Free Library
19,607,059 articles and books
Member login
User name  
Password 
 
Join us Forgot password?

Bookmaker culls 263 call centre jobs; Ladbrokes blames off-shore rivals.


Byline: BEN SCHOFIELD

HUNDREDS of jobs are being culled in a "devastating" move by betting shop giant Ladbrokes.

The high street bookmaker announced it is closing its Aintree call centre and losing 263 Liverpool jobs.

It claimed profits are being plundered by foreign-based betting outfits undercutting their operation.

Workers were told of the closure at a meeting yesterday and were sent home from their shift five hours early.

Bosses said they were starting a 90-day consultation on the plans and would try to redeploy people to avoid mass redundancies.

The betting shop's core telephone business was lossmaking at the half-year stage this year, recording a 41% drop in revenues. Call revenues were also down a stinging 73% in the last quarter amid tough trading.

In a statement, the company said: "UK-based telephone betting operators like Ladbrokes are being severely impacted by competition from offshore operators that enjoy significant tax advantages.

"Ladbrokes' telephone betting service pays 15% tax on its gross profits and a further 10% on profits from UK horse racing, as well as VAT and corporation tax.

"Offshore operators typically pay no or very low taxes and no horse racing levy."

In August, the firm transferred Labrokes.com to Gibraltar, a British territory and tax haven.

Company spokesman Ciaran O'Brien added: "Telephone betting is a very competitive market and one that is becoming increasingly difficult for UK-based operators."

But trade union Usdaw, which represents many of the call handlers, was outraged at the news.

Usdaw's Sue Ianson, who has responsibility for Ladbrokes in Liverpool, said: "We are devastated at Ladbrokes' announcement. The company only informed us minutes before they broke the news to the workers.

"This is dreadful news for our members, especially at this time of year."

Mrs Ianson said she is meeting the managers today to try to get to the bottom of why they made the move.

It is the second round of job losses at the centre this year. Over the summer, around 40 jobs went.

Ladbrokes' only other call centre is at its headquarters in Harrow, near London.

The Aintree centre used to share the site with Ladbrokesowned Vernons. But that side of the business was sold to Walton outfit Sportech for pounds 51m, in November, 2007.

After the sale, the number of staff working at Aintree rocketed from around 150 to a high of 340.

COPYRIGHT 2009 MGN Ltd.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Daily Post (Liverpool, England)
Date:Nov 20, 2009
Words:392
Previous Article:INSIDE.
Next Article:Social worker in court over child pornography charges.
Topics:

Terms of use | Copyright © 2012 Farlex, Inc. | Feedback | For webmasters | Submit articles