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Job fears after RBS deal collapse

Thousands of workers are facing mounting uncertainty over their jobs after the collapse of a proposed sale of RBS branches to Santander.

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Job fears after RBS deal collapse

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."

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RBS chief: Santander deal collapse 'disappointing'

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.

– Stephen Hester, RBS Group Chief Executive

Details on the Santander and RBS deal

  • 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.

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Deal between RBS and Santander could be called off

by - Former Business Editor

I am hearing the Royal Bank of Scotland may call off the deal to sell branches to Santander - it has already been hit by delays. I understand joining up IT was a big problem.

Statements from RBS and Santander are imminent - so if this deal has not come off, what happens to those RBS branches that were up for sale?

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