Lloyds Banking Group jobs losses must spur government into action on post-Brexit risks, says TUC

28 July 2016

Reacting to the announcement today (Thursday) by Lloyds Banking Group (LBG) that future job losses will be greater and faster than previously announced, the TUC has called on the government to take urgent action to protect jobs in the more challenging economic conditions that are developing following the Brexit vote.

Prior to today, LBG had already announced its intention to reduce staff numbers by 9,000. However, it has today announced that this will be increased to 12,000 and the timetable for staff reductions will be brought forward.

The company says the decision is in part because it expects interest rates will be held lower for longer.

TUC General Secretary Frances O’Grady said: “The growing expectation since the Brexit vote of an economic slowdown seems to be a factor. The government needs to act now to secure jobs and investment before thousands of working people pay the price of Brexit with the loss of their job.

“The government must assure businesses that where the Brexit vote is leading to urgent challenges that put jobs at risk, they will step in to help. And ministers must commit to working closely with employers and trade unions on an approach to Brexit negotiations that does what’s needed to keep jobs in the UK.”

The trade unions Accord and Unite both represent staff at LBG.

General Secretary of Accord Ged Nichols said: “The loyal, dedicated and customer-focussed employees in the Lloyds Banking Group are still reeling from recent job losses. They will be bewildered by today’s news and wonder what has happened that is so catastrophic that these further job cuts and branch closures are necessary. Interest rates may be lower for longer, but why are job losses higher and faster?

“LBG says that the re-shaping of its business is being driven by changes in customers’ behaviour, competition and regulation. But employees want to know exactly how this will impact on them and their families.”

National Officer for Unite Rob MacGregor said: “This announcement is very bad news for workers and their families, and more widely it is a further body blow to the UK economy.

“These are permanent jobs that are being lost. As a country, we can’t afford to lose these jobs in a challenging post-Brexit world.

“Unite will not tolerate enforced redundancies and will hold Lloyds to the commitments they have given.”

NOTES TO EDITORS:

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Contacts:

Media enquiries:
Tim Nichols  T: 020 7467 1388  M: 07808 761844  E: tnichols@tuc.org.uk
Michael Pidgeon  T: 020 7467 1372  M: 07717 531150  E: mpidgeon@tuc.org.uk