Latest LTU News http://www.ltu.co.uk/index.php The latest news from Lloyds Trade Union. en-us £20Bn Case Goes To High Court http://www.protectourpensions.co.uk/ltutest_site//blog-219-£20bn-case-goes-to-high-court The Union’s landmark legal case on the equalisation of Guaranteed Minimum Pensions (GMPs) has now been lodged with the High Court. Members will recall that the Bank, LTU and the Lloyds Banking Group Pensions Trustee Limited are bringing the case jointly.

Three representatives of the Lloyds Bank Pension Scheme No 1, Lloyds Bank Pension Scheme No 2 and HBOS Final Salary Pension Scheme have been joined to the proceedings to argue the case that benefits must be equalised on the basis most favourable to members. LTU’s solicitors and barristers are representing the three representative members in this case.

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Tue, 23 May 2017 10:27:41 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-219-£20bn-case-goes-to-high-court
The New PPI Scandal? http://www.protectourpensions.co.uk/ltutest_site//blog-218-the-new-ppi-scandal? It seems that little is ever new in the design and marketing of risky financial products. The gullibility of customers and so-called asymmetry of information (where sellers know much more about the products than customers) will always be exploited in order to create profit opportunities. And so it was with structured financial products.

From 2000 onwards, Lloyds TSB Bank (which became Lloyds Banking Group following the HBOS merger) started selling structured financial products to customers. These were known to customers as:

Market Linked Deposit (MLD)
Offshore Limited Deposit (OLED)
Inflation Rate Bond (IRB)
Capital Protected Fund (CPF)
Protected Capital Solutions Fund (PCSF)
Guaranteed Investment Bond (GIB)

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Wed, 10 May 2017 17:09:52 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-218-the-new-ppi-scandal?
Executive Pay http://www.protectourpensions.co.uk/ltutest_site//blog-217-executive-pay

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Wed, 10 May 2017 17:05:29 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-217-executive-pay
Lloyds Banking Group Pension Schemes – Commutation Factors http://www.protectourpensions.co.uk/ltutest_site//blog-216-lloyds-banking-group-pension-schemes-–-commutation-factors

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Thu, 27 Apr 2017 19:33:17 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-216-lloyds-banking-group-pension-schemes-–-commutation-factors
Lloyds Banking Group, Reading and New Trustee Board Letter http://www.protectourpensions.co.uk/ltutest_site//blog-215-lloyds-banking-group-reading-and-new-trustee-board-letter

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Thu, 27 Apr 2017 19:11:13 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-215-lloyds-banking-group-reading-and-new-trustee-board-letter
Technical Issues With System http://www.protectourpensions.co.uk/ltutest_site//blog-214-technical-issues-with-system It’s somewhat ironic that when the Bank announced the recent branch closures and redundancies because it said customers were increasingly using smart phones and tablets to access their banks accounts, many of those branches that were closing couldn’t access Robin Bulloch’s teleconference to find out what was happening because of “technical issues with the system”. Members found out their branches were closing or being downgraded when they read about it on the Bank’s intranet site or by speaking to staff who had managed to get through to the teleconference.

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Thu, 27 Apr 2017 19:06:00 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-214-technical-issues-with-system
The Value Of Pensions http://www.protectourpensions.co.uk/ltutest_site//blog-213-the-value-of-pensions We are aware of one female member of staff with a pension of £2,029 per annum at age 60 who has been offered a cash equivalent transfer value (CETV) of £176,000. That’s 87 times the projected pension income. 

Whilst it is true that not all transfer values will have the same multiplier, the transfer values being offered by the Trustee, which are calculated by the Scheme Actuary, taking into account discount rates, inflation, GMP revaluations, market conditions and mortality rates, are worth significantly more than the commutation factors used by the pension schemes when converting pensions into tax-free lump sums. Before we discuss commutation factors and transfer values, the Union is still receiving reports from members who are experiencing long delays in getting their transfer value quotes. The new administrator should have anticipated the level of demand for CETVs and put in place contingency plans to ensure that quotes were dispatched quickly. The Trustee Board should be writing to the administrator telling it to reduce the timescale for producing quotes from 6 weeks to 3 weeks. The length of time it takes to produce quotes is important because valuations are only valid for 3 months and unnecessary delays could cause members to be seriously disadvantaged. We have also noted that in some cases there are significant differences between initial CETV estimates being provided to members and the actual quotes received once members have opted out of their pension schemes.

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Fri, 07 Apr 2017 09:45:09 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-213-the-value-of-pensions
Branch Closures & Redundancies http://www.protectourpensions.co.uk/ltutest_site//blog-212-branch-closures-redundancies The Bank has responded to LTU’s Newsletter last week in which we said: “…..we are aware that many LDs have already been told which areas they will be covering. It’s common knowledge that the Bank is going to reduce the number of Regions and the number of Local Director Groups. Given it’s common knowledge the Bank should announce it now rather than waiting until next month”.

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Wed, 05 Apr 2017 14:16:20 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-212-branch-closures-redundancies
Levelling The Paying Field http://www.protectourpensions.co.uk/ltutest_site//blog-211-levelling-the-paying-field The Bank has confirmed that the Group Chief Executive, Antonio Horta-Osorio received an 8.4% salary increase last year. That was the largest salary increase of any member of staff in the whole of Lloyds Banking Group. Details of the difference in pay and benefits between the GCE and all employees across the Bank are set out in the table below. This year the GCE will get a salary increase of 6.5%, again the largest annual salary increase of any member of staff in the Bank.

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Fri, 31 Mar 2017 09:22:28 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-211-levelling-the-paying-field
No Silver Lining In IBM Cloud http://www.protectourpensions.co.uk/ltutest_site//blog-210-no-silver-lining-in-ibm-cloud In response to our Newsletter announcing the Bank’s plans to outsource 1,900 IT jobs to IBM and then stand by whilst those jobs are offshored and Lloyds staff made redundant, Jacqueline Guichelaar-Fauvel, CIO of Infrastructure and Services at Lloyds, said in a recent teleconference that no final decision had been made on the Group’s IT Destination Strategy. However, in the same breath she said the Bank was discussing its plans with Accord and Unite, who will of course raise no objections.

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Wed, 29 Mar 2017 11:50:33 +0100 http://www.protectourpensions.co.uk/ltutest_site//blog-210-no-silver-lining-in-ibm-cloud
Yet More Redundancies http://www.protectourpensions.co.uk/ltutest_site//blog-209-yet-more-redundancies The Bank announced that there will be a further 1,090 job reductions covering 12 different areas of the Bank (Commercial Banking, Customer products and Marketing, Group Operations, Consumer Finance, Insurance, Group Finance, Group Risk, People, Legal and Strategy and PAs). Details of those job reductions will be covered in a separate Newsletter. What’s clear when you look at some of these areas of the Bank is that this will be the 4th or 5th reorganisation they have been through in the last few years. As we said in a previous Newsletter we are aware of some members who have gone through the stresses of the selection process following previous announcements and secured new roles. Those same staff will now be told that they must go through the whole process again and spend the next few months waiting to find out whether they have got jobs or not. That’s unacceptable.

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Thu, 23 Mar 2017 17:55:52 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-209-yet-more-redundancies
Bonus Awards 2017 http://www.protectourpensions.co.uk/ltutest_site//blog-208-bonus-awards-2017 This year the Bank is reducing annual bonus payments again by 19%, with minor variations between business units.

The exact details of how the divisional bonuses have been calculated and the on-target levels they will deliver are set out in the table shown further on in this newsletter. The actual awards for staff, broken down by grade and performance rating, are available from the Union’s Bedford Office.

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Wed, 15 Mar 2017 12:47:25 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-208-bonus-awards-2017
1,961 IT Jobs Outsourced & Then Offshored http://www.protectourpensions.co.uk/ltutest_site//blog-207-1961-it-jobs-outsourced-then-offshored In a recent presentation Morteza Mahjour, Chief Information Officer, confirmed that Lloyds Banking Group will outsource large parts of its IT estate to IBM in a deal worth £1.3bn over 7 years. Up to 1,900 IT staff will be outsourced to IBM, and then over a four-year period the work will be offshored. Project Aurora was due to be announced in January but negotiations with IBM are taking longer than originally thought. LTU’s expectation is that the IBM outsourcing/offshoring deal will now be announced within the next few days. We also understand that the in-house staff unions – Accord and Unite – have agreed the details of the TUPE transfer.

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Sun, 12 Mar 2017 14:01:42 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-207-1961-it-jobs-outsourced-then-offshored
Flexible Resourcing & Expenses: Bank Backs Down http://www.protectourpensions.co.uk/ltutest_site//blog-206-flexible-resourcing-expenses-bank-backs-down Despite a deafening silence on the matter of expenses, the Bank has finally conceded and given Bank Managers written advice on how the matter of travel expenses will be handled under Flexible Resourcing - a great relief to Managers and CSAs no doubt.

The Bank has said:

“As part of introducing resource pools, a colleague’s current branch remains their base branch.

If a colleague is now working flexibly across a resource pool and travelling to branches other than their base branch, then the colleague should not be out of pocket and therefore is able to claim any extra travel costs using the Colleague Expenses policy/procedure. This could be extra miles driven, extra parking toll fees or extra public transport costs.”

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Mon, 06 Mar 2017 12:09:23 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-206-flexible-resourcing-expenses-bank-backs-down
Lloyds Banking Group’s Acquisition Of MBNA http://www.protectourpensions.co.uk/ltutest_site//blog-205-lloyds-banking-group’s-acquisition-of-mbna

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Fri, 24 Feb 2017 18:39:13 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-205-lloyds-banking-group’s-acquisition-of-mbna
Data Centres Going To IBM http://www.protectourpensions.co.uk/ltutest_site//blog-204-data-centres-going-to-ibm In a previous Newsletter LTU reported that Lloyds Banking Group was on the verge of signing an agreement to outsource its Data Centres to IBM.

We said:

“Jacqueline Guichelaar, CIO of infrastructure and Technology services at Lloyds, is desperate to push ahead in outsourcing these critical services to IBM”.

We also highlighted the fact that a number of Senior Managers and Heads of Functions had serious doubts about these critical systems being outsourced to a third party but that those voices of reason were being ignored by a management team determined to cut costs.

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Tue, 21 Feb 2017 20:31:20 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-204-data-centres-going-to-ibm
Critical Advice on Flexible Resourcing http://www.protectourpensions.co.uk/ltutest_site//blog-203-critical-advice-on-flexible-resourcing When the Judge who ruled in our favour on the ‘Non-Signer’ Employment Tribunal case gave his Judgement, he drew attention to an extract from a report given to Lloyds Bank’s GEC in 2009, just before the Bank began the process of harmonisation of contracts across Lloyds Banking Group. The report said:

“The recession, on top of integration, means that colleagues will be most concerned about staying in employment and potentially less concerned than normal about the employment proposition.”

In other words, because people are worried about job security given the merger and recession, we’ll get away with forcing through contract and other changes that ordinarily staff wouldn’t accept.

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Mon, 20 Feb 2017 19:28:16 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-203-critical-advice-on-flexible-resourcing
Flexible Resourcing - Act Now http://www.protectourpensions.co.uk/ltutest_site//blog-202-flexible-resourcing--act-now Have you ever heard of ‘Salami Negotiation’? It’s an approach used by negotiators to achieve a particular objective, which likens the process to slicing a Salami sausage. The idea is that Salami is eaten in thin slices, which combined add up to a full portion. What would be indigestible in one lump is more palatable in small slices.

In business, firms make smaller changes one at a time, which eventually amount to very substantial change that would have been rejected if presented in one go.

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Mon, 13 Feb 2017 16:00:05 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-202-flexible-resourcing--act-now
Flexible Resourcing - What’s It Going To Cost You? http://www.protectourpensions.co.uk/ltutest_site//blog-201-flexible-resourcing--what’s-it-going-to-cost-you? In a perverse twist on the traditional tale of Robin Hood, Mr Bulloch and his band of merry men are apparently embarking on a plan to rob from the poor and give to the rich.

Looking at the guidance given to managers in the recent Flexible Resourcing pilots, the Bank said “more flexible approaches to managing and resourcing our branches locally will help us become more agile, effective and efficient”.

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Fri, 10 Feb 2017 10:58:22 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-201-flexible-resourcing--what’s-it-going-to-cost-you?
Data Centres Going To IBM? http://www.protectourpensions.co.uk/ltutest_site//blog-200-data-centres-going-to-ibm? Lloyds Banking Group is on the verge of signing an agreement with IBM to outsource its Data Centres.

We understand that Jacqueline Guichelaar, CIO of infrastructure and Technology services at Lloyds, is desperate to push ahead in outsourcing these critical services to IBM. These crucial systems underpin the Bank’s major Payment, Treasury Trading, Settlement and Digital Services; which means the Bank would be handing over its Crown Jewels to a third party to support and manage! Lloyds is pushing very hard for this deal to be signed within the next few weeks.

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Fri, 03 Feb 2017 16:05:11 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-200-data-centres-going-to-ibm?
LTU Ratings Advice http://www.protectourpensions.co.uk/ltutest_site//blog-199-ltu-ratings-advice Line Managers will shortly begin to arrange 1-to-1 meetings to communicate end-of-year ratings and to discuss overall performance feedback for the year. Those meetings should be completed by the end of January.

The end-of-year ratings staff will receive over the next few weeks will determine the level of pay increases and bonus payments they receive over the coming months.

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Mon, 23 Jan 2017 18:23:01 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-199-ltu-ratings-advice
8% Pay Increase For GCE http://www.protectourpensions.co.uk/ltutest_site//blog-198-8%-pay-increase-for-gce The average pay increase for staff this year will be 2%. Antonio Horta-Osorio, the Group Chief Executive of Lloyds Banking Group, will get a whopping 8% pay increase bringing his basic salary up to £1,220 million.

As part of a two-year pay deal, the Group Chief Executive of Lloyds Banking Group, who is currently hobnobbing with world leaders and Shakira at the World Economic Forum in Davos, described by one wag as: “the place where the people who spend all year causing all our problems take a few days pretending to try and fix them”, got a 6% pay increase last year and is set to get an 8% pay increase in 2017. Following agreement by the Bank’s Remuneration Committee, the GCE’s basic salary will have increased from £1,061,000 to £1,220,00, or 14%, in the space of two years. And I’m not going to mention his two pensions!

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Fri, 20 Jan 2017 11:01:02 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-198-8%-pay-increase-for-gce
CSA “Flexible Resourcing” http://www.protectourpensions.co.uk/ltutest_site//blog-197-csa-“flexible-resourcing” In what it describes as a ‘handout’, Lloyds tells staff that:

1. They will have one-to-one meetings with their line managers to help the Bank “understand their individual circumstances and any flexibility they are able to offer in terms of working patterns and/or location.”

2. Any changes to working patterns or working location the Bank wants to make “will be achieved in full discussion with colleagues and by mutual agreement wherever possible. Where mutual agreement cannot be achieved an independent review panel has been set up to ensure that the business request of the colleague is reasonable taking into account the colleague’s individual circumstances.”

Learning from Experience

In 2010, when Lloyds moved to impose contract changes it sought to reassure staff that it would put in place safeguards to make allowances for individual circumstances. The assurances the Bank is giving now are more or less what it said then.

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Thu, 19 Jan 2017 15:18:10 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-197-csa-“flexible-resourcing”
TUPE Transfer To Equiniti http://www.protectourpensions.co.uk/ltutest_site//blog-196-tupe-transfer-to-equiniti The announcement before the Christmas break of the TUPE-transfer terms that would apply to staff being transferred from Lloyds Estates Administration Services to Equiniti is causing much resentment and is a major concern for all affected staff; both in respect of their immediate and future prospects.

We understand that the Bank has ‘agreed’ the transfer terms with its two weak, HR-approved unions - Accord and Unite - who we believe have no members amongst the 42 staff affected.

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Mon, 16 Jan 2017 20:38:50 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-196-tupe-transfer-to-equiniti
Much Ado... About Nothing http://www.protectourpensions.co.uk/ltutest_site//blog-195-much-ado-about-nothing The juxtaposition in treatment couldn’t be any more telling. Just before Christmas, the Bank published the latest details of Antonio Horta-Osorio’s 4% additional increase in base pay, which is delivered in a tranche of monthly shares.

Fast forward a few weeks and the Bank has announced today, with the tacit agreement of the HR approved staff unions, a pay pot of just 2%. And’s that at a time when all commentators are predicting that inflation is going to increase significantly over the next few months.

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Tue, 10 Jan 2017 20:38:09 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-195-much-ado-about-nothing
Rush To Cash In Pensions? http://www.protectourpensions.co.uk/ltutest_site//blog-194-rush-to-cash-in-pensions? It seems that the new Administrator of the Bank’s Pension Schemes is getting the kind of bad reputation that Equiniti took years to acquire through under investment in the business. 

Members who are considering cashing in their final salary pensions, and we understand the numbers asking for transfer valuation quotes has increased significantly over the last few months, are being told they must wait up to 6 weeks to get the pensions opt out form.

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Mon, 09 Jan 2017 09:58:44 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-194-rush-to-cash-in-pensions?
A Christmas Carol In Prose http://www.protectourpensions.co.uk/ltutest_site//blog-193-a-christmas-carol-in-prose A Christmas Carol by Charles Dickens is one of those popular stories - having never been out of print - you read to your children at Christmas because of its irresistible appeal against meanness of spirit and the power of redemption. And in the chaotic world we live in these themes that are just as powerful today as they were back in 1843 when the book was first published.

However, it would seem that the Christmas spirit hasn’t percolated to every corner of the Bank. In the Pendeford Call Centre for example, and we’ve seen similar reports from members in other business units, the Bank has decided to close the office 4 hours early on Christmas Eve. Excellent news you would think - staff can have time with their families and friends. But, and there always is a “but”, staff who are scheduled to work that day have been told they must make up the 4 hours they haven’t worked in the New Year. Penderford’s Senior Management conveniently forgets the fact that many of those staff will have worked a lot more than 4 hours in the form of unpaid overtime throughout 2016. And let’s not forget, the Bank decided to close the business early, not the staff. It seems that the Senior Management team are determined to extract every ounce of surplus value from staff.

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Thu, 22 Dec 2016 21:16:10 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-193-a-christmas-carol-in-prose
Accord’s Black Wednesday http://www.protectourpensions.co.uk/ltutest_site//blog-192-accord’s-black-wednesday The Bank and the smaller HR approved unions - Accord and Unite, have agreed to the introduction of a new Retail Variable Pay Plan (RVPP).

Details of the Bank’s proposals are as follows: 

  • From 1st January 2017 all staff who are on the Variable Pay Scheme will move to the new RVPP. Award payments under the new scheme will be based on a fixed percentage of salary and will be paid annually like the Group’s Annual Bonus Plan. 
  • Base salaries will be increased for those staff who will see their total earnings (Base + Variable) reduced as a result of the introduction of the new RVPP.

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Wed, 14 Dec 2016 13:02:05 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-192-accord’s-black-wednesday
Accord’s Black Tuesday http://www.protectourpensions.co.uk/ltutest_site//blog-191-accord’s-black-tuesday We are living in strange times. Recently we had the grotesque spectacle of the General Secretary of Accord, which claims to be independent trade union, joining a Bank run teleconference trying to sell an unpalatable package of changes to the Connect Unsocial Hours Payment Scheme which is going to see 1,200 HBoS heritage staff losing significant amounts of money, with some losing over £900 a year.

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Thu, 01 Dec 2016 20:50:26 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-191-accord’s-black-tuesday
Your Performance - LTU Advice http://www.protectourpensions.co.uk/ltutest_site//blog-190-your-performance--ltu-advice As we approach the end of 2016, LTU receives hundreds of requests from members for advice and guidance on end-of-year reviews. It is important that members update their balanced scorecards so that their Line Managers are aware of how they have performed against each of their objectives since the half-year reviews.

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Wed, 30 Nov 2016 19:21:40 +0000 http://www.protectourpensions.co.uk/ltutest_site//blog-190-your-performance--ltu-advice