Received from: Aegis
The UK finance sector is a key part of the economy. It provides over 1.1 million workers with relatively good-quality jobs. However, the sector is changing as more established providers transfer work and employees to third parties to administer.
The terms and conditions of many of these third parties are often in no way comparable with the traditional businesses and they are often non-unionised. There is a real danger that good-quality jobs will disappear if Congress doesn’t protect them collectively.
In their place Congress could find the types of precarious work found in other sectors like hospitality and retail. This would have a devastating impact on the UK economy and the pride of the people who work in financial services.
Since the financial crash 11 years ago the culture of cost-cutting across the industry has hit an all-time high. There is now a significant risk of a ‘race to the bottom’ in terms of workers contractual rights to gain a competitive cost advantage and collective bargaining is a vital part of preventing this.
Although the sector is large, union density is not and there’s a danger that outsourcing is likely to lead to a further decline in membership unless Congress acts.
Congress therefore calls on the TUC to conduct research to establish:
i. how widespread this practice is in the finance sector
ii. the impact it has on collective bargaining and union membership
iii. how the TUC can help unions in this sector seize the opportunities it creates.