Lloyds Trade Union (LTU)

July 01, 2011 11:29 ET

IDS Comments: Union Representing Lloyds Staff Insists Bank Should Prioritise Saving UK-Based Jobs

Lloyds Trade Union (LTU) Has Insisted That Comments Made by the Work & Pensions Secretary, Iain Duncan Smith, Whilst Welcome Simply do not go far Enough.

LONDON, UNITED KINGDOM--(Marketwire - July 1, 2011) - On Thursday, the Lloyds Banking Group announced that it is to axe a further 15,000 jobs – on top of the 27,500 already announced since the merging of Lloyds TSB and HBOS – over the next three years.

But despite making such savage cuts to staff numbers in the UK, the Bank has so far refused to accept calls from the Union to:

  • Return to the UK the 5,000 jobs that have previously been transferred to India and which could quite simply be returned to the UK to offset some of the 15,000 further job reductions that it will otherwise inflict upon its UK-based staff.
  • Commit to halting the transfer of further jobs to India, where it can employ workers on a fraction of the pay of existing UK-based staff. Instead, by committing only to "not offshore any further permanent operational roles", the careful phraseology hides the fact that this leaves the door open to transfer more IT work to India, which will mean that work developing new IT systems will be denied from qualified UK-based workers.

In his Strategic Review, the Group Chief Executive Antonio Horta-Osorio stressed the renewed focus upon concentrating the Bank's activities within the UK. This being the case, there is no excuse for not also committing to supporting the UK Economy and UK jobs by abandoning the Bank's discredited Offshoring Strategy.

No Excuses

Critics of Ian Duncan Smith's most recent comments have argued that it is unrealistic to depend upon UK-based workers, arguing that simply do not have the skills to carry out the work that UK Companies are seeking.

These are predictable comments from business organisations that just want cheap employees rather than investing in training and developing UK Staff.

But these excuses cannot be deployed by apologists of Lloyds' Offshoring Strategy. The fact is that there isn't a lack of qualified staff to carry out the 5,000 jobs already in India. Instead, there are existing Bank employees in the UK whose jobs could be saved if the work was returned to the UK. And that means more people paying tax; and less receiving state benefits.

Campaign To Mitigate UK Job Losses

Lloyds Trade Union (LTU), which is the largest trade operating in the Lloyds Banking Group, is insisting that work should be returned from India and the Philippines to the UK, in order to help minimise the impact of job reductions amongst its UK-based workforce.

LTU has so far collected the signatures of over 500,000 customers in the UK who are opposed to their accounts being managed abroad and support the call for jobs to be returned to the UK.

Union Comments

Steve Tatlow, Assistant General Secretary at LTU has said:

"Now is the time for Lloyds to accept that it has a responsibility to UK jobs and the UK economy – it must abandon its offshoring strategy with immediate effect".

"Ian Duncan-Smith's comments are an important development. Now the Government should put its money where his mouth is and use its 41% ownership of the Lloyds Banking Group to demand that the Bank abandons its discredited Offshoring Strategy and protects the existing jobs of UK-based workers".

About Lloyds Trade Union (LTU)

Lloyds Trade Union (LTU) is the largest independent trade union representing staff working in the Lloyds Banking Group, with well over 40,000 members.

For More Information

If you would like more information, you should contact Steve Tatlow on 07879 643130 or email him at Steve.Tatlow@ltu.co.uk.

Steve Tatlow, Assistant General Secretary

Contact Information