Want a loan from RBS? You’ve got to apply to Mumbai!
Bank axes 450 business staff and moves decision-making to India
THE Royal Bank of Scotland is secretly scrapping nearly 450 British jobs as it switches key roles arranging loans for small businesses to India.
Make-or-break analysis on lending to small British firms will now be carried out 4,500 miles away in Mumbai.
The taxpayer-owned bank dropped the bombshell news to staff last week in an internal message seen by The Mail on Sunday – but no public announcement was made.
Unions and MPs are incensed that the bank bailed out by taxpayers is now exporting jobs to India and laying off staff in the UK.
Labour MP John Mann, a member of the Treasury Select Committee in the last Parliament, said: ‘It’s outrageous that a Government-controlled bank is letting hundreds of British jobs go abroad, especially considering all the money British taxpayers put in to save it.’
Rob MacGregor, the Unite union’s national officer for finance, said: ‘We understand the need for financial institutions to rationalise costs, but the jobs still need to be done. They get them done on the cheap and the British taxpayer and workers get shafted.’
Lee Morse, head of portfolio management at RBS, told staff in an email: ‘There will be a significant impact on the size of our UK presence and we will reduce our UK team by 443 roles. Today’s announcement has been difficult and unsettling.’
In total, 418 roles will be transferred to India, but the bank stressed that ‘all roles which require customer contact will remain in the UK’.
RBS was given a £45.5billion Government bailout in 2008, meaning that taxpayers owned 80 per cent of the bank.
Small business leaders also expressed concern about the move. Mike Cherry, chairman of the Federation of Small Businesses, said: ‘Many small business customers with RBS will be extremely concerned at the idea of local expert staff being sent packing and their roles outsourced to call centres halfway around the world.’
An RBS insider told The Mail on Sunday: ‘The bailout was done to help save the British economy so we find it unbelievable that taxpayers’ money will be used to make British workers redundant. How does that help our economy?’
An RBS spokesman said: ‘As we become a simpler, smaller bank, we are making some changes to the way we serve customers. These changes will result in the net reduction of 443 roles in the UK. We will do everything we can to support those affected.’