Barclays in deal to stop forced job losses

Published on Tuesday 6 January 2004 00:00

BARCLAYS has signed a deal with Unifi, the UK’s main banking trade union, to avoid compulsory redundancies as a result of shifting work to low-cost countries India.

While the group said it has no immediate plans to make any cutbacks among its 9500 staff at British call centres, it said it would give workers three months’ notice and three months’ paid leave if they were made redundant.

Barclays has so far created 500 jobs in India, which affected 250 roles in the UK and resulted in 40 people leaving the bank. The remaining 210 were redeployed.

A Unifi spokesman said: "With this new deal, Barclays will consult before any major decisions are made. Obviously, we would hope we can have an influence on the scale of outsourcing done."

Barclays is also to set up a redeployment team at a cost of 250,000 and employ consultants Right Coutts to advise staff who are affected by the move of jobs abroad.

A voluntary redundancy register will operate in a 55-mile radius from any business operation affected by outsourcing so staff whose jobs are not threatened can choose to leave, opening places for those who want to stay.

Keith Brookes, Unifi’s national secretary for Barclays, said: "Obviously, I would prefer that jobs are not shipped abroad. But in the circumstances this is a good agreement which I believe will serve as a blueprint for the industry."

A Barclays spokesman said: "We are being honest about outsourcing. It is an option. But it is not going to be a bandwagon zipping past at 50 miles per hour that we will jump on come what may.

"We are a commercial organisation, but we also want to take care of our staff. Unifi are calling this agreement ground-breaking and we hope it is."

Some analysts believe the stream of UK back-office jobs going to lower-cost, English-speaking countries such as India could reach a flood in the coming years, with some predicting between 150,000 and 200,000 jobs could eventually be outsourced.

Last month, Trade and Industry Secretary Patricia Hewitt, said it was a "myth" that the UK’s call centre industry was in decline.

She welcomed the deal between Barclays and Unifi, adding: "It allows the management to maximise its future strategic options and recognises the responsibilities the union has in representing members."