The takeover of HBOS by Lloyds TSB must not result in thousands of compulsory redundancies, unions have warned.
Lloyds TSB yesterday revealed that it plans to slash £1.5bn from costs by 2011 following the proposed merger with HBOS – £500m more than originally announced.
Super-union Unite, which represents thousands of staff at the two banks, urged Lloyds TSB and the government to end the speculation and provide job security for staff who are unsure about their job security.
Unite joint general secretary, Derek Simpson, said: “It is completely unacceptable for the banks to continue to fuel speculation while leaving their worried staff in the dark.
“It is now time to start thinking about the human consequences of this takeover. None of the staff at these two banks should be forced out.”
He added that compulsory redundancies could be avoided if the banks worked with unions to manage the takeover properly.
“This takeover is unique, competition rules have been waived and the taxpayer has been forced to take a stake in these banks. Where the government has the power to protect jobs it must do so.”
Simpson has written to business secretary Peter Mandelson urging that Unite be treated as a key stakeholder in the future of the financial services industry, and asking him to ensure the employment security of employees in the finance sector.