Member Article

Rock begins to roll on job cuts

Nationalised bank Northern Rock (formerly known in the media as ‘troubled mortgage lender Northern Rock’) has begun a 3-month consultation period with unions and staff over plans to cut 2,000 jobs.

The bank, which employs around 6,000 people, said most of the jobs will go this year. The Unite union has called on Northern Rock not to make compulsory redundancies at the bank.

The Newcastle-based company said in March that it planned to cut about a third of its staff as part of a plan to revive the bank’s fortunes.

Ron Sandler, chairman of Northern Rock, said: “In order to meet our previously stated corporate objectives, it is necessary for us to contract to a smaller and more sustainable business. “This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimise the extent and impact of potential job losses.”

The bank is aiming to reduce its residential mortgage lending by half as part of a plan to return the lender to private ownership.

Graham Goddard, Unite Deputy General Secretary, said: “If downsizing goes ahead, Unite will be demanding that Northern Rock give a commitment to no compulsory redundancies. The workforce did not contribute to the situation which the bank now finds itself in and should not be expected to pay the ultimate price by being forced out of their jobs.

“Throughout the last seven months of uncertainty the employees of Northern Rock have remained committed to the long-term success of the company. Decisions must not be made merely in the pursuit of short-term cost savings.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .