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Press Release: "Don't Punish Innocent Staff Over Bonuses"
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Date: 16th Feb 2009
The Independent trade union representing the majority of Lloyds TSB Staff - Lloyds TSB Group Union (LTU) - is insisting that tens of thousands of 'ordinary' staff receiving modest salaries should not be prevented from receiving their hard won and fully deserved bonuses.
The Union is concerned that politicians and the media are tarnishing all staff with the same brush as being 'Fat Cat Bankers', when the fact is that the overwhelming majority - well over 95% - are paid modest salaries and have had no involvement whatsoever in the sorts of schemes that have contributed to such high losses in the finance sector. The average basic salary for Lloyds TSB Staff is under £17,000.
These staff who are paid modest basic salaries - for whom regular bonus payments are a routine component of their remuneration package and are designed to focus their activities rather than encourage them to take risks - perform a wide variety of roles, ranging from those working as cashiers etc in the Branch Network to those based in Call Centres, Processing Centres and in non-strategic Head Office roles.
Reasons Why The Majority Of Lloyds TSB Staff Shouldn't Be Punished
There are several important reasons why Lloyds should not be forced to scrap bonuses for the overwhelming majority of its staff:
1. Most staff have had absolutely no involvement in the type of strategies and schemes that have contributed to current difficulties in the financial sector.
2. Bonuses paid to the majority of staff have been designed to focus their performance on specific areas of activity - including customer service - rather than for participating in 'risky ventures'.
3. Lloyds TSB was not one of the failed banks, but rather had been persuaded to act as a 'White Knight' to save HBOS for the good of the wider UK Economy. So why should its staff be punished for the shortcomings of other banks?
4. Over recent years there has been a drive within Lloyds TSB toward performance management and moves away from basic pay toward bonus payments designed to focus individual performance.
5. Many ordinary staff on modest salaries depend upon receiving their regular bonuses in order to make ends meet: average salaries in Lloyds TSB are well below the national average.
To withhold bonuses from these staff would be to punish staff who are entirely innocent of any fault for the current predicament in the financial sector.
Sticking To Contracts
LTU is insisting that Lloyds TSB Staff, who have a contractual entitlement to receive bonus payments, and who have achieved their objectives without putting the Bank or wider economy at unnecessary risk, should receive payments automatically.
The Union is particularly concerned that some senior politicians should be calling upon Lloyds TSB to break its contracts with its employees and punish ordinary staff, who are entirely innocent of any wrongdoing, by withholding their hard-earned and fully justified bonuses.
Union Comments
Steve Tatlow, Assistant General Secretary at LTU has said:
"Whilst we understand fully the clamour to punish those bankers who are responsible for getting the financial system into the problems it is in now - those who gambled in a cavalier way - it is not acceptable that tens of thousands of ordinary staff doing an admirable job should be penalised through losing their hard earned bonuses"
"Too often the public perception is that all bank staff earn big salaries and take big risks. But the truth is that the vast majority are paid modest salaries of under £20,000 and receive bonuses for doing a good, solid job. These staff should not be punished for the failings of others"
"Withdrawing bonuses from hard working staff on modest salaries would push many into financial difficulties. Politicians should back off and not pick on these staff for cheap, unjustified soundbites".
About Lloyds TSB Group Union (LTU)
Lloyds TSB Group Union (LTU) is the largest independent trade union representing staff working in the Lloyds Banking Group, with over 40,000 members. In large parts of the Bank, LTU represents over 90% of all managers and staff.
For More Information
If you would like more information, you should contact Steve Tatlow on 07879 643130 or email to Steve.Tatlow@ltu.co.uk.
Steve Tatlow
Assistant General Secretary
Lloyds TSB Group Union
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