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Northern Rock bonuses defended

While one North East bank sets its sights on sunnier climes, another is taking the heat over its latest round of bonuses.

Staff members at the nationalised Northern Rock have received bonuses as a reward for their “dedication”.

Most of the bank’s 4,500 staff will receive 10% of their salary under an agreement approved by the Treasury last year.

Unite national officer Rob MacGregor said: “Unite members and staff at the bank have worked exceptionally hard in extremely difficult circumstances. They have experienced the loss of friends and colleagues through compulsory redundancy yet have continued working solidly with dedication and commitment.

“These have been very difficult times and this bonus agreed with the Treasury was promised if targets were met. Their dedication and commitment has meant that they have not only achieved but exceeded the targets set.

“The bonus will be welcomed by the staff that have had to endure a very difficult working environment, including a freeze on their normal bonuses and promotions for some 18 months. This is fair recognition of their hard work and dedication.”

In response to the announcement, Liberal Democrat Treasury spokesman Vince Cable said: “This is bringing the worst of the City bonus culture into a public body. This is an extraordinary action from a state-owned bank which still owes billions to taxpayers.

“When millions of people are facing pay cuts or even unemployment, this is indefensible. The Government should step in to stop this now.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .