Unions blame HSBC chiefs for UK job losses
UNIONS promised to fight for HSBC staff after the giant bank announced 8,000 in the UK will lose their jobs.
Around 100 branches in Britain will close, and the retail bank will get a new headquarters in Birmingham as the group implements the ring-fence which splits up retail and investment banking.
“Unite are seeking to meet with UK chief executive Antonio Simoes as soon as possible to demand that any redundancies are through voluntary means or managed through natural attrition,” said union official Dominic Hook.
“This latest wave of job losses is a stab in the back to a dedicated workforce who have put HSBC back on the road to recovery since 2008. After all the scandals of recent years, front line staff have suffered time and time again as they are forced to pay for the mistakes of others with their jobs, their terms and conditions and their reputation.”
The bank said the job cuts will be attritional – that is, the lender hopes to avoid firing staff, and will seek to cut headcount by failing to replace staff who retire or otherwise choose to go.
The reforms come after a series of problems for HSBC.
Chief executive Stuart Gulliver had announced a shake-up after he was appointed in 2011, which included a range of cost-cuts.
But they were swamped by litigation and expenses such as payment protection insurance mis-selling compensation. The bill for redress payments from 2011 to 2014 came in at $5.7bn (£3.7bn).
HSBC had escaped much of the reputational damage which had afflicted other banks during and since the financial crisis, until the forex scandal and tax evasion accusations hit after 2012.
This year Gulliver himself was hauled before MPs to face the claims that HSBC’s Swiss bank helped clients evade tax. And he was questioned on his own tax status as a non-dom – a position he holds thanks to his long career in Hong Kong, and his intention to return there after he retires.
Q&A: HSBC’S FINES AND LITIGATION COSTS
Q Where has HSBC been in some expensive trouble?
A The US and the UK have led the world in fining banks, and HSBC is no exception. The European Commission has also got involved, as well as the authorities in France and Hong Kong. But a Swiss investigation into its tax affairs has been closed with no further action.
Q Which are the most notable fines so far?
A The forex fines levied by UK and US authorities last November hit the bank to the tune of £389m. And HSBC paid $1.9bn to settle US money laundering allegations in 2012. But unlike other leading banks, HSBC has not been fined for attempted Libor manipulation.
Q Did the bank get involved in mis-selling products such as PPI?
A Yes it did. It paid $5.7bn in compensation from 2011 to 2014.
Q Are any other investigations in the pipeline?
A Yes. A key case is the French probe into HSBC’s Swiss Private Bank over tax concerns.