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Northern Rock to cut jobs this year

Northern Rock has confirmed that the majority of the proposed 2,000 job cuts will happen this year.

It says it has submitted an HR1 Form to the Department for Business Enterprise and Regulatory Reform today.

The HR1 Form confirms details of the proposed reduction in staff numbers, as previously announced by the Company in its Provisional Business Plan published on 31 March 2008.

The lender says it will now start a 90 day consultation period with the union Unite and other employee representatives, with the inaugural meetings planned for May 1.

It says the start date for the job losses has not been set but will be agreed with Unite during the course of the consultation period.

Executive chairman Ron Sandler says: “In order to meet our previously stated corporate objectives, it is necessary for us to contract to a smaller and more sustainable business. Regrettably, this is likely to involve a reduction in current staffing levels of around 2,000 and a restructuring of the Company. Submission of the HR1 Form effectively marks the start of the formal consultation period during which we will discuss with Unite and other employee representatives how we propose to achieve that.

“This is a very difficult time for our people and we will continue to work closely with them and Unite, to minimize the extent and impact of potential job losses. We remain closely engaged with local agencies, including One NorthEast, to ensure that those who may be affected are offered as much support as possible.”


By definition

As a child, I used to ask my mother what she had meant BY an earlier comment, she would retort with “just what I say” and I was no further forward. In short, no definition equals no clue.

Annuity standards

The Association of British Insurers says it has toughened up its standards for processing open market annuities by scrapping its 10-day turn-round rule in favour of insurers paying out funds by a selected retirement date.


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