EMCC European Monitoring Centre on Change

Lloyds TSB

Company/Organisation:
Lloyds TSB

Geographic Location

Country: United Kingdom
Region: Tyneside; Northumberland and Tyne and Wear; North East
Location of affected unit(s): Newcastle

Company

Sector: Financial services
Financial and insurance activities
64.1 - Monetary intermediation
Number Employed: 79000

Employment Effects

Announcement Date: 30-10-2003
Planned Job Reductions min: 1000
Planned Job Reductions max: 1000
Type of Restructuring: Offshoring/Delocalisation
Other Job Reduction Measures: 1000

Additional Information

On 31 October 2003, Lloyds TSB, UK bank employing 79,000 people, announced that it would close its call centre in Newcastle, which employed 986 people, and sub-contract the jobs to its new centre in Hyderabad, India. On 18 December 2003, after months of negotiations and threats of strike by the unions, the bank has promised to offer a job to anyone at the call centre who wanted to stay with the bank. On 10 June 2004, Lloyds TSB has set a date for the closure of its Newcastle call centre, then putting 960 roles at risk. The Lloyds TSB Group Union said that even though the bank had been making efforts to redeploy staff, almost half of those affected had not been found alternative jobs. Lloyds TSB disputed the union's claims and said that it had made an agreement with another union, Unifi, in which it pledged to offer a job to staff wanting to stay in the group and a £2,000 grant for those who left as a result of their job transferring offshore. The 1,000 jobs were shed at Lloyds' Newcastle call centre as a result of the bank's decision to move the work to India. The call centre was expected to be closed by the end of the August 2004. The high street bank has finally closed its Tyneside call centre at the end of November 2004 with the loss of almost 1,000 jobs. Lloyds TSB caused controversy with its decision to axe its Newcastle site and export 960 jobs to India.