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Press Release

Unite welcomes budget announcement of investigation into bank sales culture

25 March 2010

Unite the union has welcomed the announcement, in the Budget Report, that there will be an investigation into the sales culture in the retail banking industry.

In chapter 3 of the Budget report on Reforming Financial Services (Section 3.90) it is announced that a working group will be set up to report to the Chancellor ahead of the Pre-Budget Report.

Rob MacGregor, Unite national officer said: "Unite the Union has long been calling for a light to be shined on to the culture of the banking sector which forces staff to promote and sell products to customers in order to meet unrealistic sales targets. This announcement is a victory for staff in banks across the UK in their campaign to reform the industry and re-build the sector.

"There is now an opportunity to eradicate the murky practices which put pressure on staff and customers. This new examination by the government is a win for consumers and a win for those workers on the front line of the banking sector.

"Since the start of the economic crisis staff working in banks have faced increased pressure to promote financial products and often their pay is determined by unfair incentive schemes. Unite members feel uncomfortable with having to pressure customers to invest in products which they often don't feel they need, simply because the staff have to meet unreasonable sales targets"

The Budget Report states:
[...Building on the Retail Financial Services Forum (RFSF) remit to make financial services work better for consumers, the Government will ask it to consider to what extent financial services firms' staff targets and incentives lead to poor outcomes for consumers and employees and how they can be reformed. The RFSF will set up a working group, which will engage with banks, mutuals, consumer groups, employees and trades unions and report to the Chancellor in time for the Pre-Budget Report...]



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