150,000 jobs lost in four years since start of financial crisis
7 September 2011
As the fourth anniversary of the run on Northern Rock and the
start of the banking crisis in the UK approaches, Unite the union
has said that 150,000 jobs have been lost in the financial services
industry. However, little has changed to improve the regulatory
regime and prevent a future crisis.
Despite these astronomical staff cuts, the sector continues to
resist the calls for regulatory reform to ensure that the economy
is never brought to its knees in the same way. Ahead of the report
from the Independent Banking Commission on Monday the scale of jobs
cuts must not be ignored.
Unite, the union which represents staff in the sector, has found
that in the four years since the near collapse of the sector
employment has fallen dramatically by 150,000 and there seems to be
no end to the constant stream of job cuts announced.
David Fleming, Unite national officer, said: “As we prepare to mark
four years since the spectacular scenes of the run on Northern Rock
which sparked the events which saw a banking crisis across the UK,
astonishingly 150,000 hardworking UK taxpayers have become
scapegoats and lost their jobs in banks and call centres. Since the
crisis which brought hardship on millions of workers and their
families nothing has changed for the banking bosses.
“Reform of the financial services’ industry has been limited and
just last week we saw the sector resisting any attempt to bring
change to the behaviour of those at the top of the industry. The
report by the Independent Banking Commission is our opportunity for
massive regulatory and cultural change, we mustn’t let this moment
pass.
“While the banks cut customer service staff, investment bankers
continue to extend their risky activities. Customers now see their
finance choice dominated by a few large players controlled by
shareholders in the market.
“Four years on as a result of the finance crisis the taxpayer is
still having to prop up Northern Rock, Lloyds Banking Group and
RBS, yet the banks have resumed business as usual.
“Unite is alarmed that the contraction of the finance sector is
evident in both size and diversity. It is detrimental for the UK
that there are fewer access points to financial services and a
reduction in the number of companies in the sector.”
In just the last year the following jobs have been cut in financial
services:
Lloyds 24,000
NR 680
RBS 3,500
Barclays 1,800
HSBC 1,600
Friends Life 280
Aegon 217
CFS 730
Aviva 117
ENDS
For more information please contact Saba Mozakka, Unite press
office, on 07768 693 953.
