Lloyds Trade Union (LTU)

March 13, 2012 08:00 ET

Lloyds Banking Group Announces 1,821 More Job Losses & Offshoring 513 More IT Roles To India

LONDON, UNITED KINGDOM--(Marketwire - March 13, 2012) - The Lloyds Banking Group has today announced plans to slash a further 1,821 jobs; following on from 720 job losses announced in January and 718 in February. This raises the total job losses announced since LTSB and HBOS merged to over 30,000.

But what makes this latest announcement particularly worthy of condemnation is that whilst other, more responsible, Private Sector companies are participating in Government Schemes (however flawed, or otherwise, these might be) to create jobs in the UK, Top Management in LBG has decided to transfer to India roles currently held by 513 Information Technology Staff.

Key features of this current announcement are:

  • Group Information Technology (593 FTE Reduction) - 513 existing jobs being transferred to India where workers can be employed on inferior contracts and a fraction of UK salaries. A further 80 job cuts.

  • Training Function (535 FTE) - Slashing 55% of entire training function workforce and TUPE transferring 38 (FTE) roles to a third party, KnowledgePool.

  • Facilities Management (317 FTE) - Effectively dismantling the Bank's entire Facilities Management function: 275 (FTE) staff to be forced to TUPE Transfer to two other FM companies - MITIE and CBRE - with 42 (FTE) roles cut from the small number of retained functions.

  • Commercial Banking (252 FTE) - Roles reduced from Business Development and Support roles involved in handling SME Customers.

  • Other (134 FTE) - Series of other reductions through a combination of TUPE Transfers and other job cutting initiatives.

A Disgraceful Absence Of Corporate Ethics?

It is nothing short of a disgrace that while the UK Economy continues to suffer from increasing levels of unemployment, the Bank should be continuing to transfer the jobs of existing skilled staff to India.

LBG's Top Management doesn't seem to care about the fact that it shares a major responsibility for creating the Financial Crisis and resultant growing levels of unemployment in the UK. Neither does it seem to appreciate that it has a responsibility to the UK Economy; what with not only making the majority of its earnings from within the UK, but also being 41% owned by the UK Tax Player.

Instead, the Bank is choosing to transfer a further 513 skilled Information Technology roles to India - 308 Permanent and 205 Contractor - ditching the jobs of existing UK-based staff and replacing them with low-paid staff in India on inferior contracts and paid only a fraction of UK salaries.

Lloyds Trade Union is writing to the Government and MP's asking that they intervene to force the Bank to act in a more responsible way and in accordance with the UK National and Economic interest.

Union Comments

Steve Tatlow, Assistant General Secretary at LTU, has said:

"This is disgraceful conduct by Lloyds Top Management. Whilst we might accept that cutting jobs is justified when a company needs less staff, this is immoral. UK-based workers are being condemned to joining the burgeoning ranks of unemployed for no other reason than they can be replaced by lower-paid workers on the other side of the world."

"First the Bank is a lead contributor to this economic crisis. And then it refuses to follow the lead of many other more responsible companies who are helping create jobs in the UK. It is doing the absolute opposite - unnecessarily and unjustifiably swelling the ranks of the unemployed."

"Last week, RBS announced it was offshoring 300 jobs to India and this week it's Lloyds Banking Group. Do these two architects of the current economic crisis not feel an ounce of responsibility for trying to address the burgeoning levels of unemployment they helped trigger? Where jobs are still needed, they should be retained and returned to the UK."

About Lloyds Trade Union (LTU)

Lloyds Trade Union (LTU) is the largest independent trade union representing staff working in the Lloyds Banking Group, with over 40,000 members. In large parts of the Bank, LTU represents over 85% of all managers and staff.

Steve Tatlow

Assistant General Secretary

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