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16th July 2009 - Accord calls upon the Lloyds Banking Group to stop the "unsustainable pace of redundancies"

Accord representatives and members should now be aware that the Lloyds Banking Group announced a further 1200 job losses today.

This briefing sets out:

  • Accord’s reaction
  • More details of the changes
  • How Accord deals with job loss announcements in the Lloyds Banking Group

Any queries should be referred to ged.nichols@AccordHQ.org

Accord’s reaction

Accord’s Principal Executive Council (PEC) met on July 8th & 9th to consider all matters of current concern to members.

Having reviewed reports from a range of members and businesses regarding the various restructuring announcements that have been made over the last three months or so, the PEC unanimously carried the following resolution:

“Accord remains committed to positive engagement with the Lloyds Banking Group to help to create the bank of the future in the interests of customers, employees, shareholders and the UK economy generally.

The Union has always accepted that there would be a reduction in the total number of employees in the new Group following the takeover of HBOS but is committed to this being achieved without recourse to compulsory redundancies. The Bank for its part has committed to only using compulsory redundancy as a last resort and to handling change programmes with care and sensitivity.

The current situation is that job reductions affecting more than 5% of the workforce have already been announced. The selection programmes are still being worked through but a significant number of employees are already “at risk” of redundancy and are extremely worried about their futures. The rest of the workforce is increasingly unsettled and uncertain.

The Union is concerned that the Bank is struggling to cope with the scale and pace of changes and this is having a severe impact on staff morale in some areas..

Specific complaints from members include:

  • That the arrangements for job loss announcements have not been handled well in some instances
  • Information on the new shape of the business and the roles available within it are not always clear
  • There is inadequate HR support to provide the advice and guidance that staff need when considering their futures
  • Staff are not being given sufficient input into the criteria against which selection decisions will be made
  • The CREST service is struggling to cope with volume and demand
  • Staff at risk of redundancy are not being given priority consideration for available vacancies
  • The selection process outcomes do not feel fair in some instances
  • That all opportunities for redeployment are not being fully considered before compulsory redundancy notices are issued

The Union is, therefore, calling on the Lloyds Banking Group to stop and take stock. Accord believes that until the staff who have already been notified that they are at risk of redundancy are treated with the dignity and consideration that they are entitled to expect and that the Bank has promised, then no further restructuring or job loss announcements should be made.

The Union believes that no compulsory redundancy notices should be issued to its members who are still seeking redeployment until all mechanisms to find alternative roles have been exhausted.”

A press release based upon this resolution has been issued today in response to the Bank’s announcements and further talks are taking place with the Bank today.

The Union is also seeking a further meeting with UKFI (which manages the Government’s shareholding in the Bank) on this and other issues.

More details of the changes

The changes announced today directly impact approximately 700 members of Accord and the Union will be in touch with every individual to offer support.

The details of the changes are as follows:

Group IT

In Group IT the Bank has announced the start of the “wave 5” selection process which will continue to build the new operating model on a top down basis.

660 roles will go though the Bank has said that approximately 260 of these will be contractors.

All areas of Group IT are impacted apart from Service Delivery where any changes will follow later.

Approximately 1,400 HBOS staff are “in scope” for the change programme and more from the Lloyds TSB heritage. Whilst it is clear from these numbers that the majority of staff will secure a new position with the Bank, it is nevertheless a worrying time so Accord will be contacting all of the members individually who are expected to go through the selection processes to offer advice, support and guidance.

The main areas of impact for Accord members are in West Yorkshire but there will also be an impact on members in Aylesbury, Belfast, Bristol, Cardiff, Chester, Lex, Edinburgh, Pitreavie, Livingston & Falkirk.

Concerns have been expressed about the Lloyds Banking Group continuing to use off-shore resources (both in India and in the UK) whilst cutting existing permanent jobs in Group IT. Whilst this is a bigger issue in the Lloyds TSB heritage business, Accord is concerned about the reduction in roles that is being planned and is seeking more information in ongoing talks with the Bank.

Collections & Recoveries

In Collections and Recoveries the Bank has announced the start of the “wave 5” selection process that will lead to a reduction in approximately 53 roles. There are 350 employees in the selection pool for these roles so it is clear that the majority of impacted staff will have roles in the Bank going forward.

It has also announced that there will be no reductions in front line staff or team managers, indeed 150 new jobs will be created.

A new “Centre of Excellence” is to be established in Livingston & Rosyth that will absorb some Lloyds TSB heritage work from Hove but there will be role reductions in Leeds (26) and Leicester (12). There are unlikely to be any redundancies through this process and there are no role reductions in Chester.

The Bank, has also said, however, that it will reduce the overall number of employees by 222 by the end of 2009 through efficiency improvements. It is not clear where these reductions will take place.

The net reduction in roles from today’s announcements is, therefore, 125. Accord is contacting the members in Leeds, Leicester, Arrol House and Livingston who are affected by today’s announcements to offer advice, support and guidance.

Life, Pensions & Investment

Following the bringing together of the Clerical Medical and Scottish Widows sales operations, the Bank is now bringing together the back office functions.

239 job losses are expected as follows:

Finance (45), Marketing (94), Risk (45), Sales Operations (38), Personal Assistants (16) and direct marketing / employee benefits (1).

The main impacts for HBOS staff are in Leeds, Bristol, Aylesbury & Halifax but with almost 750 HBOS staff in the selection pools and more from Scottish Widows we would hope that the necessary staff reductions will be achievable by voluntary means.

Accord is contacting the members who are directly impacted to by today’s announcements to offer advice, support and guidance

Group Security and Fraud

The “wave 5” selection process for Group Security & Fraud has also been announced today.

The Bank plans a reduction of 29 roles. 5 current vacancies will not be filled leaving a net reduction of 24 roles. There will be no impact in 2009 on The Security Control Centres.

There are 112 HBOS staff in the selection pool and more from Lloyds TSB so the majority of staff will have a role in the Bank going forward.

Accord is contacting the members who are affected by today’s announcements to offer advice, support and guidance.

How Accord deals with job loss announcements in the Lloyds Banking Group

Accord is committed to supporting members who are impacted by change programmes and is opposed to compulsory redundancies.
 
The strong Security of Employment Agreement (B324) between Accord and HBOS remains in place and is being observed by the Lloyds Banking Group:

  • “The Job Security Agreement identifies principles for dealing with potential redundancy situations and sets out the compensation arrangements. The existence of jointly agreed procedures and severance terms provide colleagues with a degree of reassurance and certainty about what would happen if, during the period this Agreement is in place, they were to be affected by a restructure or other organisational change.”

In addition to this, Accord set out a 10 point plan when the Takeover of the HBOS by Lloyds TSB was proposed. The following extracts are relevant: 

  • There should be a commitment to maintain employment in those parts of the UK and Ireland in which either HBOS or Lloyds TSB currently has significant operations. This should be backed by a commitment to take all possible steps to avoid involuntary redundancies in order to prevent the potentially devastating impact on local communities and economies of large site closures.
  • HBOS has given a commitment to Accord that it will not outsource or off-shore its UK call centre operations. Accord requires a similar commitment from Lloyds TSB in relation to HBOS call centres. In addition, Accord calls for both HBOS and Lloyds TSB to review all existing and planned outsourcing and / or off-shoring of operations to maximise employment opportunities in the UK and Ireland for current employees.
  • In the event that, after appropriate consultation, it is agreed that there is a need for reductions in employee numbers arising from the acquisition, then any such reductions should be achieved by normal turnover, early retirement and voluntary redundancies supported by other programmes and policies which seek to avoid involuntary redundancies.
  • There should be full consultation in good time with the trade unions about any proposal to close branches and a commitment to ensure that services to customers and local communities are maintained.

Accord believes that progress is being made in the joint discussions though the scale and pace of the announcements is creating a great deal of strain as reflected in the PEC resolution above.
 
Clearly, the announcements that have already been made are unsettling.  Accord’s approach is to engage positively with the employers to test the commercial logic of any plans and to mitigate the negative impact on members in line with the Security of Employment Agreement.
 
When announcements are made we endeavour to contact each individual member who is impacted to offer advice, guidance and support. This is backed up by workplace visits as appropriate and the ongoing support of the team of experienced officials that the Union employs throughout the country.
 
Our commitment is to support members right to the end of the process – working to secure suitable alternative roles for those who wish to stay in the Bank’s employment and for voluntary severance on the enhanced terms of the Agreement for those would prefer to leave or for whom suitable alternative roles cannot be found.
 
These are difficult times – both inside the Lloyds Banking Group and in the economy more generally. The Union is always unhappy at any planned reduction in the roles and opportunities available even when we fully understand what the Bank believes to be the commercial need for the changes. 
 
The reality is that there will be a reduction in the number of employees in the Lloyds Banking Group as the new business takes shape and duplication is removed – nobody expected otherwise from the day that the takeover of HBOS was first announced.
 
However, what is most important is that the unavoidable reductions are achieved by normal turnover and voluntary redundancies over time in accordance with the Security of Employment Agreement.
 
We believe that we are a strong Union and that we are acting responsibly in members’ interests to protect employment, secure fair rewards and promote dignity and equality at work. We do this by “Putting Members First” and communicating directly with them rather than through external sources. 

Any member who wishes to discuss their individual situation can ring our Helpline, 24 hours a day, 7 days a week (01189 341808) or send us an email to info@accordhq.org. 

We are committed to supporting every single member, every step of the way as the new, enlarged bank takes shape.

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