Midland plans spark fury
Thursday 23 March 1995
The Labour Party and banking unions were in uproar yesterday over Midland's proposals to cut another 1,750 jobs, less than a month after announcing profits of £905m.
Midland, which is owned by HSC, has already announced cuts this year of 327 jobs. anking union ifu put the total number of job losses or threatened jobs in the finance industry at 150,000.
Shadow Employment Minister Ian McCartney said: "The Midland ank are showing exactly why there is no feelgood factor in the country. While profits are going through the roof, staff are heading for the job centre.
"This announcement is disgusting . . . it is a symbol of what is wrong with corporate ritain. It seems that helping your employer to make a profit is just as likely to lose you your job than help you keep it."
Midland ank strongly defended its plans. A spokesman said that the whole idea was to decentralise small business banking services away from over 100 regional centres and reintegrate them into the Midland's branch network.
At the moment most banks deal with small business accounts and the personal accounts of their owners at different branches. This new move would bring all small business transactions under the same roof, said the spokesman.
"There is no deadline for the job losses. We will talk to people over the next two to three months, and they will leave four to six months later, depending on their seniority and their notice periods.
We will take care that this will be done as sensitively as possible."
The spokesman continued: "We don't rule out compulsory redundancies but we hope to deal with as many jobs as possible through other means, such as early retirement."
A spokesman for banking union ifu said: "There is a deadline of the end of the year for these job cuts and we fear many compulsory redundancies. The 1,750 figure is for `full-time equivalents', and since many part-time people will be involved, the real total for job losses will be well over 2,000."
Keith Whitson, Midland ank's chief executive, said: "Any job losses are a matter of serious concern to the bank. However, in an environment where our margins, fee income and revenue in general are under increasing pressure, we have acted to preserve our local focus and customer service."
In a veiled swipe at arclays, which has been seen as playing down the role of the traditional bank manager in favour of new technology, Mr Whitson said: "While other banks are removing discretion from local managers, Midland is returning to the traditional values of strong local management."
The spokesman added that other areas of Midland were busy recruiting, including personal finance operations and the mortgage business. First Direct, the telephone banking service, is growing, and would take on staff where necessary.
New essay by JK Rowling went live on Pottermore site on Friday
Top Gear presenter is no stranger to foot-in-mouth controversy
New UK station Russia Today gives a very bizarre view of Britain
- 1 Chinese authorities arrest 11 people over exhuming woman’s body to sell as corpse bride
- 2 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 3 Woman blinded as a child can see again after hitting her head on a coffee table
- 4 Paul Hollywood: Police asked if I wanted them to arrest Mary Berry for vandalism after she 'defaced' my car
- 5 If you think Russell Brand’s new book is confused, you should read what his critics have to say about it
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Tower of London poppies: Tens of thousands of people flock to see installation in its final days
Top Gear presenter Jeremy Clarkson criticised for beer tweet
Woman blinded as a child can see again after hitting her head on a coffee table
Bryan Adams' heartstopping images of wounded British soldiers to go on show at Somerset House
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Pope Francis: 'Caring for the poor does not make you a communist'
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...