RBS reveals insurance arm closure details

The Royal Bank of Scotland (RBS) has announced in detail the closure of several UK insurance sites, a decision that will see at least 2,000 people lose their jobs. The bank, which is part owned by taxpayers, has informed staff of plans to close 14 of its insurance centres, along with plans to cut staff numbers at 12 other sites. Those places slated for closure include the Direct Line call centre in Glasgow, two sites in Birmingham, two in Croydon and two in Bristol. Other closures will be seen in Farnham, Ipswich, Manchester, Peterborough, Romford and Cardiff, although these will happen gradually over the course of around three years, according to the company.
RBS is under duress from the European Commission to divest itself of its insurance arm as part of the deal that saw it bailed out by the UK Government nearly two years ago. It was agreed that the sale would take place by 2013, and the planned site closures form part of an overall cost reduction plan ahead of that move.
Rob MacGregor, national officer at trade union Unite, said: “RBS staff are continuing to pay the price for the bank’s failure with their jobs. Unite is calling on RBS to come clean with staff and clarify the impact of the restructuring and end the uncertainty.” RBS, though, has yet to put its insurance division, which includes Direct Line and Churchill brands, up for sale and instead is looking at a potential flotation or trade sale, expected to happen in the next two years.