Thousands of workers are facing mounting uncertainty over their jobs after the collapse of a proposed sale of Royal Bank of Scotland branches to Spanish banking giant Santander, it warned.
Unite called on the government to press the European Commission to lift its requirement for RBS to sell 316 branches and other assets.
Gail Cartmail, Unite's assistant general secretary, said:
This latest development is causing yet more uncertainty and represents another day of chaos for loyal RBS staff.
"The real danger is that the European Commission's requirement to sell branches and assets by the end of 2013 will result in a fire sale and an attempt by any buyer to strip out costs and drive down terms and conditions of hard working staff.
"At the very least the commission should give RBS more time to ensure that a buyer is found which is good for the taxpayer and the economy, right for competition and above all right for staff, their terms and conditions, job security and future."
The chief executive of the RBS said it was "disappointing" that a proposed sale of 316 branches to Santander had collapsed.Read the full story ›
Our guiding principle throughout this transaction has been a seamless journey for customers – which requires the business to be delivered to Santander UK by RBS in a steady state. We have concluded that given delays it is not possible to complete this within a reasonable timeframe.
I can assure all affected customers that there will be no disruption to the service they receive. It is business as usual in all of these branches, and customers don’t need to take any action. While this is a profitable part of our business that we would rather not part with, RBS has worked hard to ensure it is substantially separate from our UK branch network and corporate business and largely ready to be taken on by a new owner.
Much of the heavy lifting associated with a transfer has already been completed, including separating data for 1.8 million customers and putting in place a standalone management team.
It is of course disappointing that Santander decided to pull out of this transaction, especially for the customers and staff involved. However, RBS’s strong progress in our restructuring plans means we can continue to provide a stable home for this business and its customers pending a further resolution.
RBS will commence a new process of disposal and will provide a further update on this in due course.
- Royal Bank of Scotland planned to sell 316 branches to Santander.
- That included 311 branches in England and Wales and five NatWest branches in Scotland.
- The deal was announced in August 2010 and was expected to be completed at the end of 2011.
- The sale had been ordered by the European Commission after a state rescue for RBS.
- Santander reportedly paid £1.65 billion for the RBS deal.
The change to Moody’s credit rating of Santander UK plc has no impact on our businesses in the UK or our plans for future growth. Santander UK plc is an autonomous subsidiary of the Santander Group, with more than c. 90 percent of its total assets held in the UK and a Eurozone sovereign exposure of less than 1% of assets. Santander UK plc is regulated in the UK by the Financial Services Authority (‘FSA’) and relevant deposits are protected by the Financial Services Compensation Scheme (‘FSCS’).
Santander UK has become the first British high street bank to have its credit rating downgraded because of the recent trouble in the eurozone. This comes despite their reassurances on Tuesday:
Santander operates under a subsidiary model.
This means that Santander UK plc is completely autonomous from its Spanish parent company.
This structure acts as a firewall to prevent problems within one part of the group spreading to other units in the event of financial difficulties