Energy provider Npower, has announced it will be restructuring its business which unions claim may put 4,500 jobs at risk.
The company has claimed that their two-year restructuring plan will cost £500 million and by 2022 will give £100 million in profits for Npower’s German owner, E.ON.
Unison, the largest trade union in the UK has labelled this move a “cruel blow” as Npower workers receive this news in the run-up to Christmas.
The GMB trade union similarly labelled this a “body blow” and said that Npower “is a poorly managed company.”
Johannes Teyssen, chief executive of E.ON said:
The UK market is currently particularly challenging,.
We’ve emphasised repeatedly that we’ll take all necessary action to return our business there to consistent profitability.
The company has claimed that the unions suggestion of 4,500 jobs possibly being cut is accurate.
Dave Prentis, the general secretary of Unison said:
The UK energy market is in real danger of collapse. If nothing is done, there could soon be other casualties. Npower’s demise means there’s no time to waste. It makes the powerful case for bringing the retail arms of the big six energy firms into public ownership. This would preserve jobs, ensure customers get a better deal and allow the UK to meet its carbon neutral targets.