The union that represents most of the staff at Lloyds TSB wants the government to put an end to offshoring jobs,...
as a condition of the massive cash injection the bank has received.
The government announced half a trillion pounds in capital to help the UK banks get on a sounder footing amid the turmoil of the credit crunch. Lloyds TSB is amongst those that will receive funds directly.
"With the economy moving into a probable recession we should all be working to keep valuable jobs in the UK," said Lloyds TSB Group Union. "Instead, the jobs of existing UK-based staff are being ditched merely because they can be replaced by lower-paid workers in India."
Lloyds TSB has already offshored about 4,000 jobs and with the takeover of HBOS planned more are expected.
Steve Tatlow, assistant general secretary at the union, welcomed the financial rescue package, but said government should insist upon its being conditional on Lloyds TSB acting with greater corporate social responsibility by abandoning its strategy to offshore jobs.
"The quid pro quo for tax payers money being pumped into capitalising Lloyds TSB should be that the government insists the bank's top management abandons its 'jobs to india' policy in order to safeguard the jobs of those very UK tax payers it has asked financial support from."
Robert Morgan, director at consultancy Hamilton Bailey, which advises outsourcing providers, said the reality was that more offshoring was on the way.
"We are more likely to see redundancies and more mechanical work offshored," he said.
Back office staffing costs can be cut by outsourcing IT and business processes and front office staffing could be next with the growth of mobile banking, said Morgan.
"There are moves towards mobile banking at the moment and this will accelerate because of the credit crunch. It allows banks to cut costs by automating many processes."
The Lloyds TSB Group Union last month called on the bank to end its outsourcing of jobs to India in the wake of its takeover of HBOS.