Union’s fears over Northern Rock jobs
Nov 3 2007 by Adrian Pearson, The Journal
UNION leaders have accused Northern Rock of breaking a promise to avoid compulsory redundancies.
On Thursday, new Rock chairman Bryan Sanderson gave an interview to The Journal in which he said that the bank could not guarantee any jobs.
He insisted that the level of debt taken on by the bank meant that “all options had to be considered”.
And when asked if any potential sale would avoid job losses, Mr Sanderson said “that would be very unlikely”.
Mr Sanderson’s honest assessment of the difficult situation facing Northern Rock comes as the bank prepares for debts which may eventually rise above £25bn by the time the Government support ends in February.
Now union chiefs are asking for a firm commitment to job security as the bank awaits official offers.
Graham Goddard, deputy general secretary of the union Unite, said: “Unite the union is utterly appalled by the comments made by Bryan Sanderson. Unite has previously had assurances from Northern Rock that compulsory redundancies will be avoided.
“Vague comments such as those expressed by the chairman merely result in further insecurity for the employees of the bank, at a time when they are already under massive strain.
“On behalf of our members we will continue to press the bank to protect interests of our members.
“The new chairman has yet to meet with any staff representatives of Northern Rock. We would urge him to think carefully before he makes further comments about the future of staff and to sit down and meet with the union.”
The bank has insisted there are still no plans for compulsory redundancies.
A spokesman said: “Senior management at Northern Rock will continue to meet with union leaders, and in the coming weeks we will have more discussions as the details of what happens next emerge.
“I cannot say who will be meeting with whom, but we are committed to keeping the unions involved and up to date on what is happening.”
The union’s calls were backed by Newcastle North MP Doug Henderson, who urged the new boss to “do what he can to put people’s minds at ease”.
He said: “It would be foolish to not talk to the unions at this point. It’s important to get a dialogue going here.
“Obviously the new chairman does not yet know what form the bids will take, but as it is clear there will be some sort of offer, Mr Sanderson would do well to meet with Unite.
“He does not have to agree with everything that is said, but it is important that he at least meets representatives and puts some minds at rest.”
