Social contract for financial services
Unite needs your support today!
Unite is calling on all finance sector
activists to get behind the campaign by sending a postcard to local
MPs urging them to back Britain's finance workers. Read joint
general secretary Derek Simpson's letter to all finance workers
and download a copy of the postcard
and send it to your MP.
Unite is the trade union which
represents employees in the financial services industry. The
financial turmoil which has gripped the world has brought
insecurity to staff in the UK and damaged the reputation of this
vital sector of the economy. Unite has welcomed the action by the
government to inject capital into the markets. The union is
demanding that this financial support is tied to clear commitments
to secure vital jobs and make the industry more transparent
andaccountable. Unite has drawn up a 'Social Contract for Financial
Services' which it is calling on the government and finance
companies to adhere to.
1. Recognition of Unite as a
key stakeholder in the future of the financial services
industry.
The present financial crisis is the biggest challenge facing the
industry in modern times. Unite is playing its part in rebuilding a
successful and responsible industry. Finance workers are central to
this and Unite must be recognised as a key stakeholder.
2. To ensure the employment
security of employees in the finance sector.
Employees have seen their job security continually threatened as
companies making billions of pounds of profits focus on short-term
rewards to shareholders. The loyalty and commitment of finance
sector workers appear to have been overlooked in this crisis. Unite
wants to see a halt to the rush to outsource and offshore without
proper consideration of the effects on staff, customer service and
proper international standards. Employment security is inextricably
linked with the skills agenda.
3. To protect and improve the
terms and conditions of employees, including pension
arrangements.
Terms and conditions of workers in the finance sector must be
protected. Workers in this sector are subject to industry
regulation and legislation requiring a highly skilled and
proficient workforce who deserve recognition for the commitment and
professionalism that they have brought to the industry. Decent
pensionable pay increases should be awarded to workers for a fair
day’s work.
4. End the remuneration
packages of senior executives which reward short-termism and
irresponsible risk taking.
Unite will not accept a situation where reward for failure is
considered acceptable and wishes to challenge the short-termism
which drives irresponsible risk. This is in stark contrast
to employees in the sector who are increasingly involved in
performance - based pay systems. These pay systems are often based
on unrealistic or unachievable targets which are rarely agreed
through two-way dialogue. Failure to reach targets can result in
disciplinary action and zero percent pay increases.
5. Overhaul of the regulatory
structures of the financial services sector to include trade union
involvement in order to enhance the accountability of finance
institutions.
There needs to be tighter regulation of the market and
strengthening of the framework which regulates the finance industry
together with increased powers to hold to account, including
criminal proceedings, those who contribute to failings on a massive
scale. It is evident from the current financial situation that the
FSA has failed as a regulator. It is necessary to consider in the
regulatory overhaul to make the FSA a publicly accountable and
independent regulatory body to include trade union representation
as well as independent and academic experts. Unite wants to see
trade union representation on the boards of all key agencies
involved in the regulatory system.
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