Unions Disappointed by Lloyds ‘Final’ Offer to C&CM Staff
What is happening?
Lloyds have announced their final position on arrangements for staff transferring out of C&CM to Firstsource at the end of the month.
Both the recognised unions have been pushing Lloyds and Firstsource hard to make improvements to their initial transfer offers.
The Bank’s offer:
Many members have contacted us about the detrimental effects the transfer will have on their income and the main problem is the loss of the staff mortgage facility. Lloyds’ have improved their offer on this by putting in place a transfer deal which will remove some liability but have refused to waive Early Repayment Charges, which means that some staff transferring their mortgages to another provider will end up out of profit, and the Bank will make a profit from making ex-staff move their mortgages.
Employees have pointed out that Firstsource’s pay day is later in the month, which will cause an issue in meeting payments like mortgages. Firstsource have made a welcome commitment to maintain the 20th as payday and consult with staff on any changes.
Firstsource have agreed to extend Flex payments for an additional year (at 4%), paid monthly to Firstsource employees until October 2017. We pressed them to continue with this non-contractual payment indefinitely, as it form a substantial part of employees’ income.
Where Lloyds and Firstsource fall short:
The most recent transfer out of Lloyds was the Group Property unit who moved to Mitie and E C Harris earlier this year. Mitie agreed to continue with the 4% benefits payment indefinitely and provided options for share purchase schemes. EC Harris also continued the 4% flex payment and for some staff consolidated a portion of this amount into base salaries. Lloyds made compensation payments of 13% to Your Tomorrow pension members and 22% to Final salary pension members for all employees.
This time, consolidation of the 4% flex payment was a major demand of both unions, but this has been refused. Firstsource do not have a share scheme and Lloyds have not offered adequate compensation for the loss of this benefit.
Lloyds have refused to agree to our claim for a 22% pension compensation package without offering any sensible rationale.
We can only conclude that Lloyds have taken these positions because it reduces the transfer cost and saves them money, at the expense of C&CM staff.
These consultations have been difficult and the outcome has been unsatisfactory. Treating employees in this way is disloyal and unfair.
Unite will be consulting with members on the way forward on these matters. You can email us at the address below with your feedback and comments or to request individual support and advice.
For more information contact LBG.Support@Unitetheunion.org
Or phone the Unite in LBG Helpline on: 08081 449 595