Lloyds Banking Group outsourcing mail work

Copley Data Centre
Copley Data Centre

More than 160 staff employed at the Copley Data Centre are concerned for their long-term futures due to the outsourcing of jobs.

From October this year print and mail customer communications will be transferred to Communisis.

That impacts on 166 staff in Halifax and a further 75 in Crawley.

The Crawley staff face being made redundant within six months of the transfer and the Lloyds Trade Union has criticised the handling of the transfer under TUPE - Transfer of Undertakings (Protection of Employment).

Under the legislation pay and hours are guaranteed for 12 months but the LTU says there are no guarantees contractural terms will be extended beyond that.

And, compensation payments to offset losses incurred by staff - especially in relation to pension entitlements - are well below arrangements agreed for previous staff transfers.

The LTU asked Communisis for a five-year guarantee on terms without success and said a commitment by the firm to guarantee enhanced severance terms for 18 months was hardly reassuring to staff.

A Lloyds Banking Group spokesperson said the move was linked to its strategic plan and included in the efforts to reduce 15,000 jobs - the figure now stands at 10,500 towards that total.

“As the Group continues to develop Digital Banking as part of our plan, the decision has been made to outsource our print and mail services to Communisis from October 2013,” he said.

This month the bank reported half year profits of £2.1 billion - following a loss of £456 million a year ago.

The bank is 39 per cent taxpayer owned following the banking crash of 2009 and analysts believe the taxpayer stake in the business could soon be sold off. Lloyds says it is making substantial progress in the two years since it announced its strategic plan to transform the group and which is now affecting the print and mail operation at Copley. Group chief executive António Horta-Osório recently told shareholders: “We are now well on track to create a bank we can all be proud of, and which I expect to deliver strong, stable and sustainable returns to you.”