Member Article

RBS to cut 600 jobs

The Royal Bank of Scotland is to cut 600 jobs across its branch network in response to Financial Services Authority rulings.

As a result of the FSA requirements for banks to charge for previously free services, RBS will cut 618 jobs, and create 351 new roles.

In a statement, the bank said: “The Retail Distribution Review legislation takes effect from 31 December 2012 and will have a fundamental effect on how financial institutions deliver advice to customers across the whole industry, and for the workforce involved.

“From 31 December 2012, customers will be charged a fee for the advice they receive from a qualified professional.

“If our customers choose financial advice for investment products the costs will be made transparent at the outset.

“We’re committed to providing our customers with advice in line with our commitment to Helpful Banking. We’ve already provided our advisers with considerable support by way of ongoing development via the CII (The Chartered Insurance Institute) in preparation for RDR.

David Fleming, Unite national officer, said: “These latest Royal Bank of Scotland job losses are brutal. 600 staff, who for some time have faced job uncertainty as the bank reviewed their jobs, have today heard the worst possible news.

“Unite, for some time, has had major concerns about the appalling manner in which these workers at the bank have been treated.

“The union has continually raised with the bank the increasingly unachievable targets imposed on the workforce and is calling on it to review this redundancy procedure.

“Those losing their jobs today are a highly skilled workforce, and the bank has refused to take into account economic factors which have impacted performance and achievability of targets.

“Unite will oppose all compulsory job losses and challenge the ongoing management of this area of RBS.”

The RBS statement added: “Having to cut jobs is the most difficult part of our work to rebuild RBS and repay taxpayers for their support.

“We continue to make efficiencies across our business to deliver greater value to our customers and shareholders.

“We will do all we can to support our staff, offer redeployment opportunities wherever possible, keeping compulsory redundancies to an absolute minimum.”

This was posted in Bdaily's Members' News section by Tom Keighley .