From Caribbean360

Last month, RBC announced that it had entered into a definitive agreement to sell RBC Royal Bank (Jamaica) Limited and RBTT Securities Jamaica Limited to Sagicor Group Jamaica Limited.

PORT-OF-SPAIN, Trinidad, Tuesday February 4, 2014, CMC – The Banking, Insurance and General Workers’ Union (BIGWU) says more workers will be put on the breadline after RBC Royal Bank confirmed that it had sent home 20 employees from its business banking unit.

BIGWU president Vincent Cabrera told reporters that the bank intends to close down nine of its branches.

“The union doesn’t have the exact figure but over the last two years over 200 workers have been sent home and it is our information that as soon as the sale of the bank is concluded with whomever it is eventually sold to at least nine branches of the Royal Bank will be closed.

“They are seeking to reduce staff by as much as possible to make the ship lean and mean. I would like to say the module of banking at the Royal Bank within recent times…is not fitting with local demands and whereas the other banks have been making quite a lot of profits, Royal Bank because of ists economic machinations have found itself in some trouble”.

RBC Royal Bank (Caribbean) is part of the Royal Bank of Canada, the largest financial institution in that North American country. In 2008, Royal Bank Trinidad and Tobago (RBTT) was acquired by RBC for nearly TT$14 billion (One TT dollar = US$0.16 cents)

Last month, RBC also announced that it had entered into a definitive agreement to sell RBC Royal Bank (Jamaica) Limited and RBTT Securities Jamaica Limited to Sagicor Group Jamaica Limited.

It said the transaction is subject to customary closing conditions, including regulatory approvals and is expected to be finalized in the coming months.

“Consistent with our strategy of being a competitive leader in the markets where we operate, we determined after a careful and thorough review that the best decision for the long-term future success of RBC Jamaica was to sell it to Sagicor,” said Suresh Sookoo, RBC chief executive officer for the Caribbean.

Carbrera said that the union had been informed that talks between RBC and another company for the sale of the bank’s operations here had failed, but the financial institution was pressing ahead with plans to sell off its businesses here.

“Quite recently Sagicor had purchased the operations of Royal bank in one of our Caribbean territories and now we are hearing talks of the HSBC in talks Royal Bank to purchase its operations. But apparently on last Thursday, our information told us the talks broke down because Royal Bank only wanted to seel what is called the operational side of the business.”

Cabrera has promised that the union would “fight” the measure through legal means:because what they are doing they are reducing the workforce and any union involved in a situation like that has to in fact stand up and deal with the situation on a very frontal manner.

“RBC has been conducting an imperialistic type of industrial relations (since their return in 2008). We intend to fight them on their continued retrenchment,” he said.

Finance Minister Larry Howai said he was concerned about customer confidence in RBC Royal Bank after the bank’s implementation of restructuring strategies, including several layoffs.

“It is something the company will have to manage, but I am confident the management will be able to deal with it,” he told reporters.

RBC chief executive officer Suresh Sookoo said the bank was engaged in “streamlining to serve our clients better.

“ If you look at 2013, it is time to get back to being more efficient and attracting better markets in Trinidad and Tobago.”

Employee and corporate communications regional manager Nicole Duke-Westfield told the Express newspaper over the weekend that as part of the bank’s efforts to improve and strengthen business performance and competitiveness, it had to make “some difficult decisions”, including some degree of job impact in Trinidad.

“RBC has been working to manage this impact and achieve efficiencies through varying means eg, attrition, early retirement,” she said.

For more on this story go to: http://www.caribbean360.com/index.php/business/1106389.html?utm_source=Caribbean360+Newsletters&utm_campaign=5d2a1a41f6-Vol_9_Issue_024_News2_4_2014&utm_medium=email&utm_term=0_350247989a-5d2a1a41f6-39393477#ixzz2sMn4fYYO