Anger as city financial giant moves 94 more jobs to India

Published on Tuesday 20 February 2007 11:59

FINANCIAL giant Scottish Widows is to outsource another 94 jobs to India, bringing the total lost from Edinburgh to 500 in the past three years.

Employees greeted the news with a mixture of disappointment and resignation, as they expressed concerns about the gradual "erosion" of the firm's headquarters.

The company, which employs 4000 people and has its headquarters on Morrison Street, has reassured workers that no one will be made redundant. It says the cuts will be made through "natural wastage" by not replacing some staff when they leave or retire, and by cutting the numbers of temporary workers.

But David Kelly, who represents the 60 per cent of workers who belong to the Amicus union, said staff were still angry.

He said: "Staff feel disappointed that the company wants to off-shore more. Every time it happens, it makes them feel slightly more insecure.

"When it first happened in 2004, staff were a little bit more upset. They still don't like it but they're resigned to it happening.

"Obviously we would have preferred these roles to stay in the UK and preferably within the Edinburgh area. We have a dialogue with the management and we are trying to mitigate it as much as we can."

Most of the jobs to be lost will be in administration and "back-office roles". None will be working in direct contact with customers. They will be transferred to India between now and June. Bosses have not yet decided exactly which jobs will be moved.

Scottish Widows has already moved more than 400 jobs to India following a pilot study in 2004. Staff were told of the latest move last week.

Mr Kelly added: "One of the reasons that they're off-shoring these roles is that they're the least satisfying roles.

"At one time, school-leavers would have done them, but people have changed. We don't really recruit school-leavers any more, and aspirations are higher."

One employee, who did not want to be named, said he was very concerned about the move.

He said: "This is not the first round of off-shoring to take place. I feel the public should be made aware of the erosion of one of Edinburgh's institutions."

Officers at Amicus have already called for a parliamentary inquiry into what they said were "increasing problems" linked to the off-shoring of financial services administration to India.

The union said last October it had serious concerns about the security of work being sent overseas by UK firms.

Mike Pringle, MSP for Edinburgh South, said: "It's extremely regrettable that any jobs are lost in Scotland. These jobs are by natural wastage, but at the end of the day it's 94 jobs that are being lost. It's less opportunities for school-leavers and graduates."

A spokesman for Scottish Widows said it had made the decision following "cost and efficiency gains" in the pilot study.

He said: "There will be no redundancies as a result. Scottish Widows is committed to keeping all staff informed throughout and will continue talking to the unions at each stage in the process."