By Maximilian Clarke
The Government yesterday commented on the implementation of Vickers Report into banking reform.
And while many of the recommendations have been well received by both consumer and business commentators, unions feel too little has been done to address the societally damaging practice of unjustifiably high pay that is not linked to performance, at the same time as making no mention of the thousands of more low-paid jobs shed from the sector.
Commenting today (Tuesday), David Fleming- National Officer from the Unite Union- said: “The Vickers Report has a fundamental flaw in its failure to recognise the effect that the financial crisis has had on the workforce within the banks - thousands have lots their jobs. The Chancellor must take action to ensure that the workers in the banks are given a voice at a strategic level, through their trade union. Without this, the banks will fail to rebuild reputations and create stability which is so vital.
“Unite is arguing that the system of pay be reformed to protect against an economic crisis from taking place again. In order to re-build confidence in the financial services sector, it is vital that management engage with stakeholders who feel that they have been let down by the banks. This must include the workforce, customers and taxpayers. By ignoring the reward packages which link pay and performance, and the majority linked to sales targets, the Commission has failed to recognise the harm done by such incentivised based pay structures.
“The banking crisis caused by the greed of those at the top of the financial system has brought three years of staff job cuts at the front line of the banking system.”
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