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September 11, 2009

RBS thanks UK taxpayer by transferring jobs overseas

by Gill Montia

Story link: RBS thanks UK taxpayer by transferring jobs overseas

The Royal Bank of Scotland (RBS) is in the midst of another furore, with reports that leaked documents from the bank show UK jobs are being transferred overseas.

What is more, the Government has apparently approved the strategy despite rising unemployment in the UK and the Treasury having risked £20 billion of taxpayer cash shoring up the ailing group.

According to a report in The Scotsman, RBS chief executive, Stephen Hester, told staff in Singapore earlier this year that one of the group’s cost-cutting strategies was to continue to reduce jobs in Europe and the UK, relocating them in cheaper locations, such as India.

Mr Hester apparently also revealed that the strategy had the support of “major shareholders”.

Given that the bank is majority state-owned, the comment indicates that ministers have given their blessing.

The group’s IT department is understood to have suffered most as a result of the policy and according to The Scotsman, RBS India’s website was advertising 120 posts for its technology division earlier this week.

 

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