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| Version 1 | Version 2 |
|---|---|
| Union warning over banking merger | Union warning over banking merger |
| (about 1 hour later) | |
| Thousands of Scottish banking staff face an uncertain future as merger talks between HBOS and Lloyds TSB continue. | |
| A union warned it would not accept any compulsory redundancies if the proposed merger goes ahead. | |
| The Unite union urged both banking groups to take a "socially responsible approach" to the deal. | The Unite union urged both banking groups to take a "socially responsible approach" to the deal. |
| HBOS, which has its headquarters in Edinburgh, employs 17,000 people in Scotland, where it has 320 branches. | |
| The group has about 1,100 branches and employs 65,000 people across the UK, with a further 10,000 based abroad. | |
| Lloyds TSB has 70,000 staff in the UK, including 7,200 in Scotland, and a total of 1,900 branches, including 160 under the Cheltenham and Gloucester banner. | |
| A Lloyds TSB Scotland source told BBC Scotland news of the merger talks had come "completely out of the blue". | A Lloyds TSB Scotland source told BBC Scotland news of the merger talks had come "completely out of the blue". |
| Unite deputy general secretary Graham Goddard said staff must not be made to pay the price for the "corporate greed" of large institutions. | |
| HBOS customers give their views about the bank and the merger talksIn pictures | HBOS customers give their views about the bank and the merger talksIn pictures |
| He added: "With an economic downturn biting, thousands of staff at both banks will be very worried about the consequences of a merger. | |
| "Unite is calling for urgent talks at the highest level with the banks. We will not accept any compulsory redundancies as a result of this merger. | "Unite is calling for urgent talks at the highest level with the banks. We will not accept any compulsory redundancies as a result of this merger. |
| "The country is in the grip of a credit crunch and the cost of living is spiralling. Lloyds TSB and HBOS must take a socially responsible approach to this merger and make the well-being of their hard-working staff a priority during these difficult times." | "The country is in the grip of a credit crunch and the cost of living is spiralling. Lloyds TSB and HBOS must take a socially responsible approach to this merger and make the well-being of their hard-working staff a priority during these difficult times." |
| Mr Goddard said Unite would be meeting other unions to ensure there was a co-ordinated effort to support staff during the uncertainty. | Mr Goddard said Unite would be meeting other unions to ensure there was a co-ordinated effort to support staff during the uncertainty. |
| He added: "The corporate greed of large institutions has brought the financial markets to their knees. The major job losses in the sector are fundamentally caused by precarious investments and transactions by bankers pursuing large rewards. | He added: "The corporate greed of large institutions has brought the financial markets to their knees. The major job losses in the sector are fundamentally caused by precarious investments and transactions by bankers pursuing large rewards. |
| "Staff working in the financial services must not pay the price for corporate greed. | "Staff working in the financial services must not pay the price for corporate greed. |
| "Unite will be meeting with the other unions at HBOS and Lloyds TSB to ensure there is a co-ordinated effort to support the staff in this time of great uncertainty." | "Unite will be meeting with the other unions at HBOS and Lloyds TSB to ensure there is a co-ordinated effort to support the staff in this time of great uncertainty." |
| A source at Lloyds said the merger talks were a surprise to staff | |
| The Liberal Democrats' Scottish leader, Tavish Scott, has also commented on the merger talks. | The Liberal Democrats' Scottish leader, Tavish Scott, has also commented on the merger talks. |
| He said: "The enormous short-term financial pressures have understandably led to these talks, but customers need to know that banking regulators are on their side because a merger of these two will mean less competition." | He said: "The enormous short-term financial pressures have understandably led to these talks, but customers need to know that banking regulators are on their side because a merger of these two will mean less competition." |
| Ken Murray, of Blue Planet Investment Management, said: "A perceived weakness in HBOS was its reliance on wholesale funding - although in reality that was not the weakness it was made out to be in the press. | Ken Murray, of Blue Planet Investment Management, said: "A perceived weakness in HBOS was its reliance on wholesale funding - although in reality that was not the weakness it was made out to be in the press. |
| "That has made the bank, I suspect, receptive to an approach from Lloyds TSB because they can see that the combined entity makes a lot more sense than the two separate entities." | "That has made the bank, I suspect, receptive to an approach from Lloyds TSB because they can see that the combined entity makes a lot more sense than the two separate entities." |
| The fallout from the potential merger and the implications for the Scottish financial sector will be examined in an extended edition of Newsnight Scotland on BBC Two from 2300 BST. | The fallout from the potential merger and the implications for the Scottish financial sector will be examined in an extended edition of Newsnight Scotland on BBC Two from 2300 BST. |