UK Union Asks for Government Aid to End Offshoring


Just yesterday I wrote about a stalemate between Boeing and the International Association of Machinists, which wants the aerospace giant to commit to limits on outsourcing. The union contends that Boeing's expansion of outsourcing is hurting its long-term competitiveness.


The union that represents most of the staff at Lloyds TSB is making a similar demand -- with a political twist. Lloyds TSB Group Union wants the UK government to get Lloyds to stop offshoring jobs as a condition of its massive cash infusion to British banks, reports ComputerWeekly.com. According to a union statement:

With the economy moving into a probable recession we should all be working to keep valuable jobs in the UK. Instead, the jobs of existing UK-based staff are being ditched merely because they can be replaced by lower-paid workers in India.

Lloyds TSB has already sent some 4,000 jobs to India, according to the story, with more slated to go following its takeover of Halifax Bank of Scotland (HBOS).



HBOS, the beleaugered mortgage lender that last month agreed to be acquired by Lloyds, had planned to send up to 2,000 IT jobs to India, reports The Economic Times. HBOS created a list of "outsourcing objectives" before the buyout that specifically mentioned offshore delivery. The Times cites a story that appeared in the UK's Daily Mirror. In that story, a HBOS spokesman said the lender was considering expanding its use of offshore labor.


HBOS employs about 6,000 IT staff, some 1,000 of them in India.