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5th November 2009 - Bank announces capital raising plans and divestment strategy

On November 3rd the Lloyds Banking Group announced that it plans to raise new capital and to sell some operations to meet the requirements of the European Commission. 

It also announced that the Bank will not be entering the Government's Asset Protection Scheme but that certain restrictions on bonus payments would still apply at the insistence of UKFI and HM Treasury despite this.

On the divestment issue, Accord has contacted its' workplace reps at Intelligent Finance to offer support.

The majority of the retail branches that are potentially for sale are Lloyds TSB heritage and the staff are not members of Accord. We are, however, liaising with our colleagues in Unite on the matter. 

On the bonus issue, as reported previously, Accord had talks recently with UKFI (the body which holds the Governments shares in the UK banks). At that time it appeared that significant bonus restrictions were planned.  Whilst the restrictions that have been imposed will be unwelcome for those that are impacted, we are pleased that UKFI agreed a more flexible approach with LBG than might otherwise have been the case.

The members whose bonuses were deferred last year will be able to access the first tranche (33%) of their 2008 bonuses in June 2010 (assuming no clawback) as well as the first 50% of their bonuses for 2009. Going forward, we expect the Government's intervention in remuneration matters to lessen with, perhaps, the exception of Senior Executives under plans
to be unveiled following the recent G20 summit.

The November 3rd announcements are good news in so far as they suggest that LBG is on the road to recovery. 

Accord will continue with joint discussions about the 2010 change agenda and the integration of terms and conditions of employment for HBOS and Lloyds TSB staff. 

More information will follow and any queries should be referred to info@AccordHQ.org

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