RBC tries to explain foreign workers
Bank responds to CBC report of IT workers laid-off under temporary foreign worker program
TORONTO — The Royal Bank of Canada was scrambling to explain its hiring practices to customers Sunday after a media report claiming the bank was employing foreign workers to replace Canadian staff prompted a flood of outrage.
Canada’s largest bank (TSX:RY) said it has not hired foreign workers to take over the job functions of current employees, but said it uses external suppliers as one of its strategies to improve “operational effectiveness.”
It also said it would be “working diligently to find suitable roles for those affected,” but did not immediately respond to questions asking which of its employees were affected and in what way.
RBC said it planned to discuss the situation with government officials.
That wasn’t enough to placate a number of Canadians who took to the internet to express their anger at what many called unfair hiring practices. RBC was trending on Twitter in Canada Sunday afternoon.
“Bad move @RBC I’ve been thinking about switching, thanks for making decision easy for me,” tweeted one man.
“What is wrong with you @RBC_Canada,” tweeted another. “Making Canadians lose their jobs . . . I will switch banks, if not corrected.”
The bank’s move to clarify its hiring strategies came after a CBC News report that quoted a Toronto employee working in IT systems support for RBC Investor Services who said he and dozens of others were losing their jobs to temporary foreign workers.
Dave Moreau told the public broadcaster that he and others are being made to train the new workers who will be taking their jobs.
CBC said the foreign workers are employed by iGate Corp, a multinational outsourcing firm. The company’s website says it has offices that provide services for RBC in India.
The company’s website also indicates it provides services for TD Bank and Pratt and Whitney Canada among other international clients.
Human Resources Minister Diane Finley issued a statement saying the RBC situation is unacceptable if it is true.
RBC responded by saying it requires all its external suppliers to follow applicable hiring regulations in Canada.
“RBC agreements with suppliers, including in this case iGate, requires them to ensure that they are abiding by the applicable laws and regulations,” Greg Grice, RBC’s head of Enterprise Services and chief procurement officer said in a statement.
“External suppliers allow us to leverage their scale and technical skills to continually improve our operational processes and service, and re-invest in initiatives that enhance the client experience.”