In a previous Newsletter we said the co-serving of customers would allow Lloyds to close 233 branches at the drop of a hat. Lloyds announced yesterday that it was closing 136 branches. We expect it will announce further closures later in the year.
Lloyds has said the staff in the branches that are closing will transfer to branches that remain open. That kind of continual migration can’t carry on indefinitely. There will come a point when thousands of staff will lose their jobs.
We understand that consumer habits have changed but 10% of Lloyd customers only use branches; 50% of Lloyds customers have used a branch in the last 12 months. Bank branches drive economic growth in communities up and down the country but this government, like all its predecessors, seems content to let them wither on the vine. It’s committed to work with the industry to open 350 banking hubs by the end of this parliament. 230 banking hubs will be open by the end of 2025. That’s a good start but if the government wants to revitalise high streets and kickstart local economies, then all 350 hubs need to be open by the end of 2025. It should then look at increasing the number of banking hubs by a further 250 by the end of 2026. It can easily be achieved but only if it’s driven centrally by government.
WFH – What Next?
Barclays Bank has told its staff that they must return to offices for 3 days a week. Senior executives have been told they must attend in person working for 4 days a week. The new changes will be effective from 1st September 2025 and are being monitored centrally by workforce planning. There will be no exceptions.
Members will be aware that there is now a big push for in person working. At Davos last week, which was attended by Charlie Nunn, Group Chief Executive, Jamie Dimon, CEO of JP Morgan, said that all staff, without exception, will be expected to work from offices for 5 days a week. It’s looking for extra space in London to accommodate the new working arrangements. We know the GEC is concerned about the number of grades F & G staff who are ignoring the mandatory requirement to work in offices for 2 days a week.
As we reported in our last Newsletter, which was picked up by several newspapers, Lloyds is using this year’s bonus pots to penalise those senior managers not meeting the 2-day a week rule. However, what happens if that doesn’t work? Will Lloyds threaten staff with disciplinary action? Will it take adherence to the mandatory 2-day rule into account when there are a reorgainsations and redundancies?
The unknown factor in all of this is the role of the new ‘people forums’ who have no democratic mandate. Let’s not forget, only 11,000 out of 33,000 staff voted in the elections. And how will those undemocratic forums seek their mandates from staff to agree new working arrangements? Will they hold referenda on each issue, or will they just do as they told by Lloyds and keep quiet. We think it will be the latter.
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