UK job exodus continues
(24 February 2004 – UK) The flood of British financial services jobs moving to cheaper developing countries shows no signs of abating with Lloyds TSB saying they will shift 150 general insurance jobs to India.
The move, which is being seen as a pilot by the bank, follows Lloyds TSB’s recent announcement that it will have 1500 Indian based workers by the end of this year.
New graduates in India typically earn US$200 (A$260) a month to work in back office roles.
Lloyds TSB, which is the fifth largest UK bank, told staff the job cuts were "a key part of our plan to ensure the success of our business".
Finance union Unifi said the bank viewed the pilot as a way of "proving they can make outsourcing to India work, rather than an open-ended test of whether the India proposition is good for the bank, its staff and its customers".
The union is also working with HSBC to ease the blow of 4000 UK jobs moving to Malaysia, India and China over the next two to three years.
HSBC reached agreement with Unifi to give workers two years notice of which jobs will be cut, as well as advance notice of internal job vacancies in the same area.
HSBC said it will spend £4 million (A$9.7 million) on advice and counselling services for retrenched staff.
New graduates in India typically earn US$200 (A$260) a month to work in back office roles.
Lloyds TSB, which is the fifth largest UK bank, told staff the job cuts were "a key part of our plan to ensure the success of our business".
Finance union Unifi said the bank viewed the pilot as a way of "proving they can make outsourcing to India work, rather than an open-ended test of whether the India proposition is good for the bank, its staff and its customers".
The union is also working with HSBC to ease the blow of 4000 UK jobs moving to Malaysia, India and China over the next two to three years.
HSBC reached agreement with Unifi to give workers two years notice of which jobs will be cut, as well as advance notice of internal job vacancies in the same area.
HSBC said it will spend £4 million (A$9.7 million) on advice and counselling services for retrenched staff.
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