Execs Urged To Discuss Job Situation After Bank Merger

Andy Hornby and Eric Daniels, chief executives at Lloyds TSB and HBOS, are facing urgent demands from union officials for meetings to discuss the job security of nearly 140,000 workers.

Derek Simpson, the Unite joint general secretary, has issued a written statement offering to meet the two men as soon as they're available. Roughly four days have passed since the merger without any apparent efforts to hold meetings with union officials. The union is usually notified as soon as possible after a merger to discuss any planned layoffs. Unfortunately, without any meeting the workers from both banks are in limbo over the weekend. It is possible that as many as 14,000 jobs will be cut as a result of this merger.

The formation of the largest bank in Britain is creating a lot of waves . Unite has already issued an emergency resolution urging government action to seriously review current banking regulation. Mumblings from within Labour suggest that the resolution will see strong support.

The merger itself has been defended by Eric Daniels in the past. They stand by their expectations that the £13bn merger will grant significantly improved coverage for their customer base along with an expected rise in revenue and £1bn in reduced costs.

Analysts aren't so sure though. Several suspect that up to 500 Lloyds branches may close. Several brands may also disappear entirely. One mortgage provider, Cheltenham & Gloucester, is already owned by Lloyds and their company Scottish Widows is in direct competition with Clerical Medical at HBOS. These overlaps could create a number of problems ahead.

Next news article: Government to Bail Out Industry with Green Boost