|
 |
Cost Savings Increase By 50%
|
Date: 3rd Nov 2008
When the takeover was first announced the Bank said that it expected to achieve cost savings of £1 billion and there was much speculation that between 14 - 40,000 jobs would be lost from the new super bank. Today the Bank has announced that it expects to achieve savings of £1.5 billion by the end of 2011, some 50% more than the original figure. Members will be surprised, given that it is able to say what the cost savings are, the Bank is not in a position to say how many jobs will be lost as a result of the takeover.
Members will recall that when the takeover was first announced Sir Victor Blank said the suggestion of 40,000 jobs being lost was ludicrous. That may be correct but the Bank has missed an opportunity to say what the impact on jobs will be.
Mark V Brown, Assistant General Secretary, said “LTU is concerned by the substantial increase in cost savings that the new super bank is expected to achieve over the next three years and we believe it is essential for the Bank to commit itself to introduce measures, such as scrapping plans to change the severance terms, to minimise the scale of compulsory redundancies”.
 |
|
