Chamber
Meeting of the Parliament 20 December 2012
20 Dec 2012 · S4 · Meeting of the Parliament
Item of business
Clydesdale Bank Job Losses
I am grateful that the motion has been selected for debate and thank all those members who have signed up to both the motion that we are debating today and my earlier motion on the same subject. I welcome to the public gallery Alison MacLean, senior Unite the union official for the finance sector, and Jenni Brown, chair of the National Australia Group committee of Unite and chair of the Unite finance sector committee. I refer members to my entry in the register of members’ interests, which shows that I am a member of the same union.
The Clydesdale Bank is an important institution in Scottish banking. It was founded in Glasgow in 1838 and it is the personal bank of many Scots and of many small and medium-sized Scottish businesses in all parts of the country. Since 1987, the Clydesdale has been part of National Australia Group but has retained its focus as a Scottish clearing bank, headquartered in Glasgow, continuing to issue Scottish bank notes and giving support to many Scottish causes. That is particularly true in the field of sport, where it has been a sponsor of the Scottish Premier League since 2007 and of the Scottish Commonwealth games team since 2005. There are 300 Clydesdale branches throughout the United Kingdom, but around half of them are in Scotland and Clydesdale employs 3,670 staff here. For all those reasons and more, it is right that the Parliament takes a close interest in Clydesdale and the workers who are employed by it.
In February, National Australia Group announced a strategic review of its UK operations by Clydesdale, including Yorkshire Bank, and I raised the issue in this chamber with the First Minister. At that time, I wanted to ensure that the most robust defence possible was mounted to protect Scottish jobs both because of the value of the jobs to those who do them and because of the strategic importance to the Scottish banking industry and the wider Scottish economy of this Glasgow institution, which has been the subject of previous speculation about National Australia Group wanting to divest itself of the bank.
Throughout the review period, I have kept in close contact with the banking section of Unite, and I have asked the First Minister to agree to meet union representatives to discuss their concerns. The Scottish Government met Clydesdale management and I am grateful for that, but I am disappointed that correspondence that I have had with the First Minister appears to indicate that no specific meeting with Unite took place that was focused on the uncertainty that has been experienced by Clydesdale workers.
Members who have supported the motion in my name will share my concern about the news that has since emerged from the bank—specifically, the bank’s decision to close a number of financial solutions centres in Scotland. Two business and private banking centres in Dunfermline and Paisley will close; two so-called “satellite” centres at Inverurie and Bearsden will also close; and the business and private bank centre in Stirling will be subsumed into the town branch.
Those closures reflect the bank’s desire to cut costs. National Australia Group’s intention is to withdraw Clydesdale Bank and Yorkshire Bank from property development and investment lending and to concentrate their activities on personal lending and private banking accounts. Obviously, I welcome any move that has as its objective the correcting of past mistakes, but the staff who are to retain their jobs will want to be certain that the new course that National Australia Group has set for the Clydesdale is the correct one.
Prior to today’s debate, I have been advised by Clydesdale Bank and the union that—and I welcome this—many of the affected staff will have the opportunity to transfer within the business and most of those who leave will do so through voluntary redundancy. However, it is a matter of great regret that some will be made compulsorily redundant. The figures that I have been given by the bank indicate that 20 Scottish staff are to be forced out in that way. I understand that a number of staff from across the United Kingdom who are to leave their jobs will do so today.
In some respects, Glasgow is likely to be a beneficiary of centralisation of some of the bank's activities, so I can hardly fail to welcome any new jobs that might be created in, or moved to, my city. However, that does not lessen my concern that, as a result of the changes, the Scottish banking sector will lose almost 100 jobs, which is up from the previously suggested figure of 60. That follows on from the considerable pain that has been experienced by workers at Clydesdale’s larger competitors in Scotland over recent years and, indeed, weeks given the news that Lloyds Banking Group is to close its call centre in Motherwell.
It could be said that Scotland will fare better from the changes at Clydesdale and Yorkshire because the majority of the 1,400 jobs that are going will be lost in other parts of the UK—in particular, as I understand it, in the south of England. However, redundancy, whether voluntary or compulsory, will be difficult for many of the bank’s hard-working and loyal staff, particularly—it may be a cliché—at this time of year, although, in truth, to be told that one’s job is no longer required by an employer is always a traumatic experience, whenever and under whatever circumstances it occurs. For many of those who will leave Clydesdale Bank, where they will find new employment is uncertain, and it is concerning that many of their skills will be lost.
In seeking a debate in Parliament, I sought to highlight the changes that are occurring at Clydesdale, which essentially involve a retreat by the bank into its traditional heartlands and into more traditional banking products. The bank’s future success is important for its customers, who include a significant proportion of small and medium-sized businesses in Scotland, and as a source of good-quality employment in the banking industry.
The Clydesdale Bank is an important institution in Scottish banking. It was founded in Glasgow in 1838 and it is the personal bank of many Scots and of many small and medium-sized Scottish businesses in all parts of the country. Since 1987, the Clydesdale has been part of National Australia Group but has retained its focus as a Scottish clearing bank, headquartered in Glasgow, continuing to issue Scottish bank notes and giving support to many Scottish causes. That is particularly true in the field of sport, where it has been a sponsor of the Scottish Premier League since 2007 and of the Scottish Commonwealth games team since 2005. There are 300 Clydesdale branches throughout the United Kingdom, but around half of them are in Scotland and Clydesdale employs 3,670 staff here. For all those reasons and more, it is right that the Parliament takes a close interest in Clydesdale and the workers who are employed by it.
In February, National Australia Group announced a strategic review of its UK operations by Clydesdale, including Yorkshire Bank, and I raised the issue in this chamber with the First Minister. At that time, I wanted to ensure that the most robust defence possible was mounted to protect Scottish jobs both because of the value of the jobs to those who do them and because of the strategic importance to the Scottish banking industry and the wider Scottish economy of this Glasgow institution, which has been the subject of previous speculation about National Australia Group wanting to divest itself of the bank.
Throughout the review period, I have kept in close contact with the banking section of Unite, and I have asked the First Minister to agree to meet union representatives to discuss their concerns. The Scottish Government met Clydesdale management and I am grateful for that, but I am disappointed that correspondence that I have had with the First Minister appears to indicate that no specific meeting with Unite took place that was focused on the uncertainty that has been experienced by Clydesdale workers.
Members who have supported the motion in my name will share my concern about the news that has since emerged from the bank—specifically, the bank’s decision to close a number of financial solutions centres in Scotland. Two business and private banking centres in Dunfermline and Paisley will close; two so-called “satellite” centres at Inverurie and Bearsden will also close; and the business and private bank centre in Stirling will be subsumed into the town branch.
Those closures reflect the bank’s desire to cut costs. National Australia Group’s intention is to withdraw Clydesdale Bank and Yorkshire Bank from property development and investment lending and to concentrate their activities on personal lending and private banking accounts. Obviously, I welcome any move that has as its objective the correcting of past mistakes, but the staff who are to retain their jobs will want to be certain that the new course that National Australia Group has set for the Clydesdale is the correct one.
Prior to today’s debate, I have been advised by Clydesdale Bank and the union that—and I welcome this—many of the affected staff will have the opportunity to transfer within the business and most of those who leave will do so through voluntary redundancy. However, it is a matter of great regret that some will be made compulsorily redundant. The figures that I have been given by the bank indicate that 20 Scottish staff are to be forced out in that way. I understand that a number of staff from across the United Kingdom who are to leave their jobs will do so today.
In some respects, Glasgow is likely to be a beneficiary of centralisation of some of the bank's activities, so I can hardly fail to welcome any new jobs that might be created in, or moved to, my city. However, that does not lessen my concern that, as a result of the changes, the Scottish banking sector will lose almost 100 jobs, which is up from the previously suggested figure of 60. That follows on from the considerable pain that has been experienced by workers at Clydesdale’s larger competitors in Scotland over recent years and, indeed, weeks given the news that Lloyds Banking Group is to close its call centre in Motherwell.
It could be said that Scotland will fare better from the changes at Clydesdale and Yorkshire because the majority of the 1,400 jobs that are going will be lost in other parts of the UK—in particular, as I understand it, in the south of England. However, redundancy, whether voluntary or compulsory, will be difficult for many of the bank’s hard-working and loyal staff, particularly—it may be a cliché—at this time of year, although, in truth, to be told that one’s job is no longer required by an employer is always a traumatic experience, whenever and under whatever circumstances it occurs. For many of those who will leave Clydesdale Bank, where they will find new employment is uncertain, and it is concerning that many of their skills will be lost.
In seeking a debate in Parliament, I sought to highlight the changes that are occurring at Clydesdale, which essentially involve a retreat by the bank into its traditional heartlands and into more traditional banking products. The bank’s future success is important for its customers, who include a significant proportion of small and medium-sized businesses in Scotland, and as a source of good-quality employment in the banking industry.
In the same item of business
The Deputy Presiding Officer (John Scott)
Con
The next item of business is a members’ business debate on motion S4M-05153, in the name of Drew Smith, on job losses at the Clydesdale bank. The debate will...
Drew Smith (Glasgow) (Lab)
Lab
I am grateful that the motion has been selected for debate and thank all those members who have signed up to both the motion that we are debating today and m...
Roderick Campbell (North East Fife) (SNP)
SNP
Does the member accept that the fact that many of the Clydesdale Bank’s lending products to small businesses are now the subject of a review by the Financial...
Drew Smith
Lab
I am not aware of all the details of that review, so I would not wish to comment on it other than to say that, by debating the motion in the chamber, my conc...
Richard Lyle (Central Scotland) (SNP)
SNP
I congratulate Drew Smith on securing today’s debate on the proposed job losses at Clydesdale Bank. As a Clydesdale customer for more than 40 years, I am sur...
James Kelly (Rutherglen) (Lab)
Lab
I congratulate Drew Smith on securing the debate on the important issue of job losses at the Clydesdale Bank.The motion focuses on the recent spate of job lo...
Gavin Brown (Lothian) (Con)
Con
I, too, congratulate Drew Smith on securing the debate.There is bound to be disappointment across the chamber at the loss of jobs being suffered in the Clyde...
Stewart Stevenson (Banffshire and Buchan Coast) (SNP)
SNP
As other members have done, I thank Drew Smith for giving us the opportunity to discuss the issue in Parliament. For the avoidance of doubt, as I will be tal...
Neil Bibby (West Scotland) (Lab)
Lab
I refer members to my entry in the register of members’ interests, because I am a member of Unite.I thank Drew Smith for securing this important debate. As h...
The Minister for Youth Employment (Angela Constance)
SNP
Like other members, I thank Drew Smith for lodging the motion and securing the debate. I understand and very much share his concerns for the workers in his r...