Partner Article

Embattled Rock staff face uncertain future

A RESPONSE group of employment and training experts has been set up to help Northern Rock staff following the news that 650 jobs will be axed at the nationalised bank.

It emerged yesterday that the restructuring of the Gosforth-headquartered bank will see a significant reduction in staff levels as it prepares its private sector return.

Regional development agency One North East will head a response group of public and private sector partners which will deliver a package of support to every redundant employee who requests help.

Ian Williams, One North East director of business and industry, said: “This announcement is a blow to the workforce and the response group stands ready to support staff as soon as required in consultation with Northern Rock and trade union representatives.

“The decision was taken with great reluctance by the bank but is one it believes is necessary as it looks to return the business to the private sector.”

The legal and capital restructure of the former Northern Rock business was completed in January 2010, creating two separate companies – Northern Rock plc and Northern Rock (Asset Management) plc – with the aim of delivering value for taxpayers by minimising the level of capital required.

Following that restructure there remained approximately 4,500 employees, serving both companies. The next phase in the plan for a return to the private sector involves the alignment of the total number of employees to the smaller size of the business.

The group has entered a formal 90-day consultation period with Unite, the union, and other employee representatives, on the proposed restructure.

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