Bank staff ballot

Accord, the union that represents members in the finance group HBOS, part of the Lloyds Banking since January, is to carry out a full consultative ballot of its members to find out what they think of proposals to integrate terms and conditions of employment between HBOS and Lloyds TSB staff.

Any negotiations are likely to be difficult as the bank is not expected to make any profits this year and shareholder dividends have been suspended. The Lloyds Banking Group has promised to make cost savings from the acquisition of HBOS of £1.5bn a year from 2011 and around 15,000 job losses have been announced in the last nine months.

No agreement has yet been reached on the terms and conditions which have been the subject of discussion between the bank and the unions. The proposals include changes to the final salary pension scheme, grading structure and holiday entitlement. Although there is relief that the final salary pension scheme will not be closed down, the proposal to limit future increases in pensionable pay to 2% or RPI (whichever is the lower) is bad news for those scheme members who still have a long way to go until retirement.

Accord workplace reps have been attending special general meetings to discuss the proposals and to consider members’ initial reactions. The ballot will take place in January 2010.