Oxfam has announced a raft of cost-cutting measures that it will make in the hope of saving £7m this financial year.
According to the charity, whose annual income to March 2023 exceeded £400m, a recruitment freeze, travel restrictions and limiting the use of external consultancies are all part of the measures.
The news comes amid ongoing discussions between Oxfam and trade union Unite about improved pay agreements for staff following industrial action last year, the first in the charity’s history.
Concerns about pay for retail staff
Civil Society understands that there are particular concerns about a reported lack of provisions for staff in the charity’s 560 shops in plans for a pay progression deal.
More than 500 Unite members employed by Oxfam voted to walk out for 17 days last December for the first time in the charity’s more than 80-year history.
However, they agreed to return to work after two days of strike action, after Oxfam put forward an improved pay offer.
A pay progression deal that included a 6% pay rise and one-off payment of £2,300 for most staff was subsequently agreed.
However, in July of this year, Unite members launched a petition urging Oxfam to honour its commitment, with the trade union criticising a “slow” pace of talks with the charity on the pay progression following the strike action.
Sources at the charity additionally told Civil Society that some staff had concerns about “secret plans” from senior management, which include alleged redundancy proposals, although an Oxfam spokesperson denied these allegations.
Oxfam ‘committed to introducing an affordable system of pay progression’
An Oxfam spokesperson said: “Like many other charities, Oxfam is facing a challenging fundraising environment and rising costs.
“We have therefore announced several measures including a recruitment freeze, travel restrictions and limiting the use of external consultancies to cut costs and bolster our reserves so that we can continue to fund communities and partners in the fight for a more just world.
“Demonstrating our commitment to our shops, we are investing in new IT and till systems to ensure that our shops are more efficient.
“Over 50 shops are now operating the new systems and the rest will be rolled out from January after the peak Christmas trading period.
“Oxfam is fully committed to introducing an affordable system of pay progression. The scheme for our retail colleagues is proposed to commence in the next financial year.”
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