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Union anger at HSBC job-cuts announcement: '2,900' at risk
A cull of UK staff at banking giant HSBC sparked union outrage today amid claims that around 2,900 jobs were under threat.
HSBC confirmed 1,200 staff face redundancy, but it is understood even more jobs are at risk, as many staff who leave are not replaced and those on contracts are not renewed.
Derek Simpson, the joint leader of trade union Unite, also claimed that 500 jobs would be moved offshore, although the bank refused to confirm exact details.
He said: "To slash 2,900 jobs demonstrates the insincerity of the claim by HSBC to be the world's local bank.
"This decision will ravage a number of local communities as sites are closed and other work is sent abroad."
HSBC, which has around 58,000 staff in the UK, said job losses would hit backroom areas such as IT and human resources rather than front-line employees in branches.
Managing director Paul Thurston said: "There are difficult decisions that have to be made as we adapt to a new environment and ensure we are well positioned for the future."
But Unite officials also claimed that the bank was effectively setting up a two-tier system of dealing with customers.
Premier customers will be serviced from centres in the UK, while basic and other account holders will be covered from India, said Unite.
"Customers of HSBC will be furious to learn that the company only believes you deserve to have a local banking service if you are a wealthy premier customer," said Mr Simpson.
"Is HSBC suggesting that the money of Joe Public is of lesser value and therefore be given a remote service?"
"HSBC is a profitable institution and the announcement today is simply using the financial downturn as a pretext to make redundancies."
The union also accused the bank of failing to hold proper consultations over the job losses.
"Workers at the bank will be alarmed at the pace at which this announcement is being rushed through," Mr Simpson added.
HSBC said 280 jobs would be axed at the Leamington Spa processing centre, 90 in Newport, South Wales, and 150 in London.
A bank spokesman said a "very small" number of jobs were being offshored, adding that he did not recognise the union number.
The job losses follow a cull of 1,100 employees at HSBC's investment banking division - including 500 UK staff - last September. Affected staff are being briefed today.
Mr Thurston said the bank "deeply regretted" the move, adding: "As you would expect, we will do everything we can to help and support those of our colleagues who are affected."
But he also warned of the turbulent road ahead for the banking sector following last year's near-meltdown.
"The operating environment for banks in the UK is extremely challenging and will remain so for some time," he said.
As one of the world's strongest banks, HSBC has not needed to call on support from the British taxpayer so far, unlike struggling rivals Lloyds Banking Group and Royal Bank of Scotland.
But earlier this month, the bank called on investors for a UK record 12.5 billion in cash to shore up its balance sheet after heavy losses in the US.
Its pre-tax profits slid to 9.3 billion dollars (6.5 billion) in 2008 and it also announced plans to wind down its US consumer lending business in a humiliating reversal of strategy.
HSBC spent 15 billion dollars (10.7 billion) on the Household business in 2003, but the withdrawal will cost 6,100 jobs as branches close.
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Tuesday 07 February 2012
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