Monday 23 July 2012

Is this a Monster privatisation of the Job Centres?

Last week it was announced that Capita will be taking over JSA online. This is a significant privatisation that could threaten civil service jobs.

Back in February there was another quiet announcement from the DWP. This was the announcement that Monster Worldwide, which describes itself as “the worldwide leader in successfully connecting people to job opportunities”, has signed a deal with the DWP for a range of online job advertisement and search services. The deal is worth £20.4 million to Monster.

This announcement raises a number of concerns.

Does this mean that the DWP are privatising their job search, which receives 1 million job searches every day?

Will this threaten jobs in the Job Centres or DWP?

Will Monster Worldwide be able to harvest information about claimants and their job searches?

We had a look at Monster Worldwide and found out some interesting information.

Monster.co.uk is run by Monster Worldwide Limited. Monster Worldwide Limited is wholly owned by Monster Worldwide Holdings Limited, which is in turn owned by Monster Worldwide Inc, an American company.

Monster Worldwide Limited has 4 directors, of which 2, Andrea Bertone and Julian Acquari are also the sole directors of Monster Worldwide Holding Limited. Bertone and Acquari were also directors of 6 other companies which they resigned from in 2009. These companies were all dissolved, but only after they had forgiven over £8 million in debts owed to them by Monster.

The most important discovery is about Monster Worldwide Inc.

Recent reports show that Monster’s market capitalization has plummeted to $1.05 billion in recent weeks from $7.5 billion in 2006. Earlier this year, shares were trading under $7, compared with a peak of nearly $50 in 2006.

In January Monster laid off 400 people.

In March, just a month after striking their £20 million deal with the DWP, Monster announced that it is open to selling all or part of itself. Chief Executive Sal Iannuzzi calls this considering “strategic alternatives.”

Does this sound like a stable partner for the Job Centre? By the time their new system is ready Monster may no longer exist.

As if the debacle of privatised security at the Olympics isn’t enough, it seems like the DWP are preparing another disaster for our job centres.

UPDATE 2nd August

“Shares of Monster Worldwide Inc. plunged to their lowest point ever on Thursday 2nd August, after the online job-search company posted disappointing second-quarter results and offered a third-quarter forecast well below expectations.

“Monster reported net income of $4.8 million, or 4 cents per share, in the April-June quarter, down 56 percent from $11 million, or 9 cents per share, in the same quarter last year.

Click here for more from Bloomberg

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1 comment

  1. Ron Graves said:

    “the worldwide leader in successfully connecting people to job opportunities”

    Which is not remotely the same as getting people into employment. I could probably connect people with job opportunities – it’s not hard. What is hard is connecting people with job vacancies they are actually suited for and stand a reasonable chance of getting.

    23 July 2012 at 10:41pm

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