Pensions work outsourced
Widows jobs among 1,000 switched to Indian firm
Widows: some staff moving to new employer (photo by Terry Murden)
Lloyds Banking Group is transferring 1,000 staff working for Scottish Widows and Clerical Medical to an outsourcing arm of Indian conglomerate Tata.
The transfer affects staff based in the Edinburgh and Bristol offices of the two subsidiaries.
They will join Diligenta, a subsidiary of Tata Consultancy Services (TCS) which already manages more than 11 million UK life and pension policies for companies such as the Phoenix Group, Friends Life (now part of the Aviva Group), Sun Life Financial of Canada UK and Guardian Financial Services(now Reassure Life).
In partnership with TCS, Diligenta also provides support to NEST, the UK government’s workplace pension scheme.
Lloyds said the switch of Scottish Widows staff was part of a push to develop better digital services for customers with insurance, pensions and investment products.
Staff affected will be protected under a TUPE agreement, which means the workers’ terms and conditions transfer to their new employer.
A Lloyds spokesman said: “The new platform will make managing heritage products simpler and more efficient for LBG customers.”
However, Rob MacGregor, national officer at the Unite union, branded the move a “betrayal”.
He said: “The bank’s ‘sale’ of its committed… staff represents contempt for long serving and skilled employees.
“The decision to simply sell off the workforce will come as a shock to staff at the bank. Unite is calling on Lloyds to reconsider this shameful deal and do the right thing by its staff who have worked hard to ensure the business is the success it is today.
“The message from Lloyds Banking Group is loud and clear and appears to be ‘so long, thanks for your efforts, you work for them now’.”