This week’s business round up in brief

• Banking and finance union Unifi has warned that London jobs are under
threat with the merger of Deutsche Bank and Dresdner Bank, despite claims that
most of the 1,500 jobs lost will be in Germany.

The deal is expected to deliver cost savings of £1.75bn a year by 2003 and
the new business will be called Deutsche Bank. But Unifi spokesman Dai Davies
warned that UK jobs could be threatened because unions were stronger in Germany
and there was no Unifi recognition in either of the London banks.

The merger of the two largest listed German banks is the biggest shake-up in
the country’s financial services industry for 50 years.

BA chief Ayling steps down after four years

• Chief executive of British Airways Bob Ayling announced his resignation on
Friday after four years at the helm.

Ayling, a former lawyer, said the demands of his four years in charge had
taken their toll and it was time for a new chief executive to step in.

Chairman Lord Marshall will take up the role until a successor is found,
with the management team reporting to him.

Ayling said he intended to take a break with his family before considering
future career options.

Shares in the airline rose sharply following the news, with trading up more
than 12 per cent, before easing back.

Tesco staff pensions hit by Budget tax rules

• Supermarket chain Tesco’s 170,000 employees will have to to boost their
pension contributions by an extra 0.5 per cent because of changes to tax rules
in the July 1997 Budget.

In that Budget pension schemes lost a tax credit awarded on their

Employee contributions in the Tesco staff scheme will rise from 3.75 to 4.25
per cent. Daily Mail

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