Rock confirms jobs axe

May 2 2008 by William Green, The Journal

NORTHERN Rock yesterday confirmed 2,000 jobs are set to go within months as it began union talks. The Unite trade union warned against compulsory redundancies in favour of retraining and redeployment as a 90-day consultation got underway after the bank formally notified the Government of its plans.

Job losses are expected at all levels, with the start date for redundancies to be agreed with by staff and Unite. Unite deputy general secretary Graham Goddard said: “The workforce did not contribute to the situation which the bank now finds itself in and should not be expected to pay the ultimate price by being forced out of their jobs.”

He called for “meaningful consultation” with staff remaining committed to the firm after seven months of uncertainty after the bank was hit by a funding crisis last September and nationalised this year.

“Decisions must not be made merely in the pursuit of short-term cost savings,” said Mr Goddard. The union is opposed to selling off company assets cheaply and demanded assurances over workers’ employment conditions and pension rights.

Rock boss Ron Sandler first announced the job losses in March in a business plan designed to put the bank on a firmer footing by shrinking it to a more sustainable size.

In the same month, it emerged ex-chief executive Adam Applegarth was entitled to a £760,000 payoff.

“This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimise the extent and impact of potential job losses,” said Mr Sandler.

He added the bank was working with local agencies, including development agency One NorthEast, to provide support to affected workers.

North East Minister Nick Brown said: “We are doing everything we can in the Government and the private sector in the region to help the employees through.”