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Unite tells Independent Commission on Banking that service must now be prioritised over the sales culture



Unite the union has called for recognition of the effect that the financial crisis has had on the workforce within the banks. The demand has come in the union’s submission to the Independent Commission on Banking, as the deadline for responses to the Commission's issues paper approaches this weekend. This follows the news last Thursday that Lloyds Banking Group is to cut another 15,000 jobs. The union represents some 130,000 workers at all grades and all occupations of the financial services sector. The submission calls for the system of pay to be reformed to limit such a crisis taking place again.



In the Unite response to the Commission, the union has expressed the urgent need for the sector to engage with stakeholders who feel that they have been let down by the banks. This must include the workforce, customers and taxpayers. By ignoring the reward packages which link pay and performance, and the majority linked to sales targets the Commission has failed to recognise the harm done by such incentivised based pay structures.



David Fleming, Unite national officer for the finance industry, said: “Morale amongst the workforce across the banks is at an all time low. The banking crisis caused by the greed of those at the top of the financial system has brought three years of staff job cuts at the front line of the banking system. Unite is urging the Independent Commission on Banking to acknowledge the impact that the crisis has had on staff and the role the remaining staff will be required to play in rebuilding its future.

“The interim report by the Commission failed to properly evaluate the social usefulness of the sector. Without the workforce being given a voice at a strategic level, through their trade union, the banks will fail to rebuild their reputations and create the stability which is so vital.

“Unite is calling on the Commission to remember that each of the finance workers are taxpayers, many are also shareholders in the bank which they work. This means that the workforce have an invaluable voice of three strong stakeholders: workers, taxpayer and shareholder. Why has the investigation totally failed to engage with representatives of the workers?

“The union continues to be concerned that with the current pay systems where managers are under pressure to reach, branch, group or regional sales targets and the personal consequences this has for individuals being forced to sell specific products. Unite is calling for an urgent reassessment of the performance management practices operating throughout the banking sector which rewards sales over service and believes this issue must be given greater priority in its final report.”





For more information please contact: Saba Mozakka, Unite press office on: 07768 693 953.

Saba Mozakka

Communications Officer

Unite

128 Theobald's Road,

London,

WC1X 8TN

Telephone: 020 3371 2058

Mobile: 07768 693 953