Unions: Banks should avoid making job cuts

Mon 11 Aug 2008 at 2:22 PM

Unions have urged leading banks not to resort to making job cuts if their mid-year results are poor.

Unite deputy general secretary Graham Goddard called on lenders to show restraint and consider workers' long-term benefit to their company.

In light of the Royal Bank of Scotland's (RBS) recent profit losses, he said: "RBS and other financial institutions are urged to not make knee-jerk reactions in terms of jobs and to maintain staffing levels that have delivered such economic successes in the past ten years."

Banks have struggled to maintain enough financial liquidity so as to continue their lending operations.

Added to this, there has been an increase in mortgage defaults as the UK nears a recession.

According to Money Facts, banks have cut the number of mortgages by 71 per cent since August 2007.

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