Lloyds TSB Group Union (LGU) has criticised the company for importing cheaper workers from abroad while shedding nearly 6000 UK jobs in the past three months. They also announced that another 15,000 jobs are likely to be cut in the months to come.
Lloyds have recently cut their pay rate for IT freelancers by 15%. The LGU has attributed this to the importing of cheaper IT workers from India on the quiet. They said that the importing of workers from the subcontinent was to “undercut the pay and replace the jobs” of IT freelancers from the UK.
IT contractor wages have been cut across the sector and many jobs have been lost. However, LGU have branded Lloyds Group actions as “wholly unacceptable” due to their counter action of importing workers to fill their job cuts. They added, “Replacing existing UK-based staff with lower paid staff from India raises very important issues and concerns.”
Questions have also been raised over the role of the government in Lloyds TSB Group practices. LGU commented, “The government has important questions to answer over why, when it owns 43.4% of Lloyds Banking Group after bailing the bank out early this year, it should not be using its influence to force Lloyds into investing in – and protecting – the jobs of UK-based staff?”
“Furthermore, why is it providing work visas to overseas workers, who would otherwise have no legal right to work in the UK, when it could instead force the bank to invest in the jobs of existing workers in the UK?”