'No escape' from job losses at Bradford and Bingley

30/09/2008

Job losses at newly-nationalised bank Bradford and Bingley are inevitable, trade unions have admitted.

David Matthews, general secretary of the union UBAC, which represents the 1,500 B&B workers, explained while the ink was still wet on the deal to nationalise the lender and sell its branches and savings business to Abbey-owner Santander, workers were expecting job losses.

He said: "Inevitably, there will be job losses.

"Staff are pretty stunned, not surprised, but stunned. But it is still business as usual for those out there in the branch network doing their job."

Unions are to now meet with representatives from the Treasury, the new owners Abbey and the existing management at B&B to ensure redundancy agreements made under B&B will be honoured.

"These are not fat cats who are losing their jobs. These are people with families to feed and mortgages to pay," Mr Matthews said.

He added the savings business was very profitable with considerable amounts of deposits, but the pressure on the share price was too much.

"The government was worried about a run if the share price had stayed low and customers started to lose confidence," he said.

"Financially B&B could have survived but there was so much pressure. The government and the FSA decided something had to be done."