Lloyds Banking Group is set to overhaul its approach to trade union representation among certain senior staff by introducing "people forums" in place of traditional union negotiations.
The banking giant, which employs approximately 60,000 people, informed its workforce through a memo that it had established "agreed new arrangements" with the Unite and Accord unions, scheduled to be implemented from January, as reported by .
The bank has outlined that this shift will alter the manner in which it engages with employees on matters such as redundancies, remuneration, and company policies. For higher-earning staff, three novel "colleague forums to replace our current collective union agreement" are poised to supplant the existing collective union agreements, Lloyds disclosed.
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These "people forums" will consist of 16 non-elected representatives whom the management will consult on "strategic matters related to our business".
Additionally, Lloyds plans to set up a "people consultation forum" featuring 28 elected personnel to deliberate on topics like health and safety and pension schemes, alongside a "Management Advisory Forum" composed of 17 elected members tasked with providing feedback to the management team.
This restructuring coincides with the 海角视频's largest retail bank's pursuit of a five-year strategy initiated in 2022, which involves a £4bn investment aimed at reducing reliance on interest rate-sensitive revenue sources such as mortgages and positioning itself as a "digital leader".
In line with its objective to enhance profitability, Lloyds has been streamlining its operations, resulting in job cuts across its branches and a review of around 2,500 roles, predominantly in back-office functions, over the previous year.
The bank has announced that its alterations to union negotiations will impact staff in higher-paid roles, specifically "grades D-G", with 80% of these employees not being members of either union. An insider revealed that these positions are more senior but do not reach executive level.
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A spokesperson for the company informed City AM that the changes were implemented "to meet our customers' ever evolving needs" and that Lloyds was "following industry best practice".
It was noted by an individual familiar with the situation that several other major banks already have similar arrangements in place.
Lloyds stated it was "working collaboratively with Accord and Unite to implement these new arrangements" and that the modifications would assist the group in continuing "continue to be an enjoyable, highly productive and rewarding place to work".
Union membership density has seen a decline recently due to acquisitions, branch closures and recruitment from the tech sector, according to Ged Nichols, the general secretary of Accord, who spoke to the Financial Times, the first to report the changes.
However, Nichols highlighted that union membership remains high among the lower grades at Lloyds and is "not insignificant in other grades".
"Independent trade unions can provide more for employees than employer led forums will ever be able to," he added.