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Manager Latest News
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Date: 3rd Nov 2009
Under pressure from the European Union and UK Government to create more competition in the UK banking sector, the Bank will be forced to reduce its market share in personal accounts and mortgages through the disposal of parts of the business over the next four years in order to create a new, standalone bank. The new bank will be created from:
- All Lloyds TSB Scotland branches
- At least 250 Lloyds TSB branches in England and Wales
- All C&G branches
- All C&G savings and certain C&G mortgages
- The Intelligent Finance (IF) business
- The TSB brand
Although this unbundling is not likely to happen very quickly and could take up to 5 years to complete, it will have massive consequences for the staff working in all these areas, most of whom will be given no option but to transfer to work for the new employer. The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) will govern the arrangements for transferring staff to another employer.
It is particularly important that staff bear in mind that the Bank has argued previously that, in terms of remuneration, only Basic Salary is transferred to the new employer. A new employer seeking to cut costs might therefore argue that staff are not entitled to compensation for Flavours, Bonuses or participation in the Sharesave Scheme. Pensions are also not legally protected.
In other words, staff transferring from the Lloyds Banking Group to another employer could, unless LTU successfully negotiated proper compensation or protection, suffer significant cuts in their overall income.
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