Hundreds of Widows jobs transferred to Diligenta

Scottish Widows HQ in Edinburgh

Unite, the union representing staff across Lloyds Banking Group, has described as a “betrayal” a decision by the financial group to outsource around 1,000 Scottish Widows and Clerical Medical staff to Diligenta — a subsidiary of India’s Tata Consultancy Services.

“Lloyds Banking Group has today (Tuesday 26 September) informed staff that it is outsourcing its closed book operations from its insurance division to TCS Diligenta,” said United.

“The Scottish Widows and Clerical Medical workforce will simply be sold by the bank and their employment transferred to the third party outsourcing subsidiary.

“The announcement will impact staff in Edinburgh and Bristol.”

Unite added: “The TUPE transfer of staff will not protect staff pensions.

“Long service colleagues who are active members of one of the Lloyds Banking Group defined benefit pension schemes will simply cease to be members following the sale.

“In addition the employees will lose all their other non-contractual benefits.”

Rob MacGregor, Unite national officer, said: “The wholescale transfer of 1,000 Lloyds Banking Group staff to Diligenta is nothing short of a betrayal of these workers.

“The bank’s ‘sale’ of its committed Scottish Widows and Clerical Medical staff represents contempt for long serving and skilled employees.

“The decision to simply sell off the workforce will come as a shock to staff at the bank.

“Unite is calling on Lloyds to reconsider this shameful deal and do the right thing by its staff who have worked hard to ensure the business is the success it is today.

“The message from Lloyds Banking Group is loud and clear and appears to be ‘so long, thanks for your efforts, you work for them now’.”

Lloyds confirmed in a statement the transfer of the jobs and said the new arrangements “will make managing heritage products simpler and more efficient for the bank’s customers.”