Unite demands facts on Barclays finances

26 June 2009

Unite, the UK's largest trade union, has today (Friday) written to the Financial Services Authority (FSA) to request they "lift the veil of secrecy" around Barclays. The union is calling for full disclosure of the Barclays recent ‘stress test'.

A ‘stress test' provides information for ongoing financial supervision and gives information on a bank's capital. The analysis shows all the relevant variables which may impact capital adequacy.

The Freedom of Information request to the financial regulator follows the refusal of the bank to give the union disclosure on its current financial situation. Unite has serious concerns as to why Barclays will not be up front with its staff. The union has serious concerns as to why the bank has suddenly decided to close the final salary pension scheme.

Unite national officer, Rob MacGregor, said: "Unite has made a Freedom of Information request to the FSA in response to the secretive approach by Barclays on its current financial state. Barclays is either hiding something from staff or hiding behind the mystery of the stress test results.

"The veil of secrecy within the finance sector must be lifted. Without a fully transparent and open financial services industry we risk simply allowing the current financial crisis to run on.

"Unite is opposed to the decision by Barclays to close its final salary pension scheme. The union is questioning whether the regulator has asked for the pension scheme to be closed in order to meet their capital adequacy or whether this decision is part of the a commitment to another financial requirement as set up by the FSA.

"The refusal to disclose to the union the full financial picture simply fuels speculation that Barclays is in a more stressed state than imagined and that hidden financial constraints are driving a desperate cost cutting agenda."

Unite believes that the closure of the stress test is in the public interest. The USA has a similar stress test for the financial services industry, the results of which are fully disclosed.

Unite is the recognised union for employees at Barclays.

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