RBS Slashes more than 3,500 jobs – the impact…

On September 2, 2010, in Redundancy, by Kesh Thukaram

The latest announcement of RBS cutting 3,500 jobs is part of its programme to shed over 9,000 people that was announced last year. Last week RBS announced that 14 of its 27 offices in its insurance division that comprises of Churchill and Direct Line will be closed.

There will be little impact of these announcements in the next few months. The jobs cull would start next year and run through to the end of 2012. The impact and domino effect of these job losses from mid next year is bound to have severe impact on the cities where these job cuts are made. It obviously will impact UK job market on the whole.

RBS is 85% owned by the tax payers and in my view it has a moral responsibility to ensure that jobs are not off-shored and British workers made redundant. Several sources indicate that more than 500 jobs have been moved to Far East, India and the US. It is important that the corporate board rooms display a lot more empathy towards their local economy and take a long term approach when it comes to redundancies rather than just focussing on short term results and their own bonuses.

The question really is what kind of jobs are under threat. Inevitably the redundancy fear is for jobs in IT and back office as announced by RBS today.

While there is no doubt that people in the mature economies especially such as Western Europe, Australia and USA have to focus more on specialised skills to have job certainty, it will take a generation to get this correction right and by then who knows which sectors would perform. In short, the survival of fittest will always remain.

Unlike the last decade, job security is a thing of the past. Regardless of function and role, it has become imperative for people to ensure that if the worst happens, they have a fall back option and a cash flow that will help weather the job loss. The two fundamental options are either people re-train themselves or find another job. As the old saying goes, it is prudent to save for the rainy day. It is never a bad idea to get a good mortgage protection or income protection insurance to protect against loss of income.

At Best Insurance, we specialise in such products and strive hard to ensure that we provide our customers with the best policies for redundancy, accident, sickness and unemployment at affordable monthly payment plans. It is always a good idea to compare the prices, take a few quotes, read the policy covers, understand the benefits and be comfortable with your decision. One tip – speak to the company you are buying from and re-confirm the information you have gathered online… one phone call can give you more information than browsing for hours.

Anyway getting back to the RBS story of today, it just seems that the flood of companies announcing job cuts is never going to stop…I am hoping for the day when I can read a newspaper with some positive news on growth and job creation…

 

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