Wednesday, February 6, 2008

Banking – not the best place to be in 2008!!

Virgin backtracks on Northern Rock redundancies pledge

Sir Richard Branson's Virgin has gone back on its pledge not to cut jobs at Northern Rock if it succeeds in its bid for the stricken lender, alarming unions who have vowed to fight compulsory redundancies

Posted by inbreda @ 12:02 PM (588 views)
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8 thoughts on “Banking – not the best place to be in 2008!!

  • Not a surprise, really. How did the workforce expect Virgin to pay back the taxpayers and keep the company going without slimming down a bit? Basic business model. Olivant et all would be doing exactly the same thing, probably with much more vigour, before cutting the Crock up and selling each piece, hopefully for a profit. The only way they were all going to keep their jobs was if they all became public sector workers when The Crock is/was/ may be Nationalised.

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  • Now that Eleflump (or whatever they’re called) have pulled out, Virgin can reveal the true nature of its bid.

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  • It beggars belief that the Crock’s own employees – of all people – believe that they should come out of this completely unscathed. As if they’ve been innocent bystanders all along.

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  • Only a “bankrupt bank” in this banana republic can afford to pay their employees “a 4% increase, which will be accompanied by a 2% profit bonus and £200 Christmas bonus” (reported by Nov 30 2007 by Chris Robinson in The Journal). Many staff in bankrupt companies run in administration would have lost their jobs long ago. As the recent doubling in staff numbers accompanied the doubling in Rock’s mortgage market share in early 2007, why are they still being paid? They can’t have much work to do if the number of mortgages sold has reduced considerably. Unless they are now busy trying to expedite late mortgage repayments from 125% of market value mortgages.

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  • I’d sack the bloody lot of them. Good luck to them striking then.

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  • I’m totally shocked that “virgin” would go back on its word like this!!!!

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  • Northern Rock used a very aggressive approach in marketing/selling its mortgage products which resulted in a 40% share of the UK residential mortgage market in the first half of 2007 (we all know what happened by late Aug/early Sept 2007)

    The business model used by NR has since been described by both the FSA & treasury select commitee as “wreckless” – so a new owner/management team couldnt possibly pursue the same market share/penetration strategy – consequently less business will come through the door and as a result they will need a LOT less employees.

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  • I know this has been said before on this site, but what about other British manufacturers allowed to sink without trace, Rover, British leyland etc. Woolworths will be disappearing shortly – didn’t notice any incentives package/ bailout for them or their workers, who probably didn’t try to sell worthless debt to the ill-informed public, but then the government doesn’t want independent manufacturers in this country, not when we can import everything so cheaply…….Oh, but wait a minute, the pound is sliding we import everything…..OH NO LOOK OUT ITS MONSTER INFLATION – QUICK CUT RATES TO BOLSTER THE HOUSING MARKET AND THE DEBT CULTURE AND ALL WILL BE WELL……………………NOT

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