Vodafone and Three say thousands of new jobs could be created by merger
Vodafone and Three have claimed that their proposed merger could create thousands of new jobs in the mobile network sector. This comes amid ongoing scrutiny of the deal by MPs.
Unite, a trade union, has criticised the deal, warning it could lead to higher prices for consumers and job cuts.
However, representatives from Vodafone and Three argued before the House of Commons Business and Trade Committee that the work needed to build and maintain the infrastructure required for the new network would create more jobs in the sector.
Nicki Lyons, Vodafone UK corporate affairs and sustainability director, when asked about potential job losses, said: "We're not in a position to give numbers at this stage, we haven't worked through that level of detail. "
She added: "What we do know is that while there is some duplication with head office jobs, the actual number of employees that we will need to create the new infrastructure that we're investing in will be significant. "
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"We believe that jobs will actually be created as a consequence of this merger for building the network, to create and support the IT systems and to maintain this new network."
The companies reckon that the merger would improve 5G availability, which could be a "knock-on benefit to the country as a whole", stimulating small businesses. Andrea Dona, Vodafone UK's network and development director, suggested that the deal "could create up to 12,000 jobs".
However, George Stevenson from Unite warned that similar deals often result in job cuts. He said the proposed merger was a "very worrying sign for workers in these sectors".
Stevenson told the committee: "We can only speak to what is proposed to happen here the merger of Three and Vodafone and based on our research of comparable mergers in the UK and the US, we would expect there to be job cuts in the region of 1,000 to 1,600 for Three and Vodafone staff,".
He also pointed out that Vodafone is currently cutting 11,000 jobs globally, including in the UK.
On the other hand, Stephen Lerner from Three said job losses at the network would be more likely if the merger did not happen, noting that the "industry trend is job losses".
Last week, the UK's competition watchdog asked third parties to submit their views of the merger ahead of it launching a formal investigation in the deal.
The Competition and Markets Authority (CMA) has warned that it will be "carefully considering how this deal may affect competition in the UK, which could affect the options and prices available to customers".
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
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