Unifi, Britain's biggest banking union, signed a deal yesterday to allow Barclays Bank to send thousands of jobs offshore.

Under the deal, Barclays will give workers three months' notice of redundancy as well as three months' paid leave when they are formally laid off.

Trade and industry secretary Patricia Hewitt said: "I am very pleased that UNIFI and Barclays have secured this groundbreaking agreement. It allows the management of the business to maximise its future strategic options, and recognises the responsibilities the union has in representing its members.

"I hope this agreement will be considered a blueprint for other employers and unions to act on in the future."

Forum Response: UNIFI

Keith Brookes, lead negotiator, said: "The agreement represents what can be achieved through positive and progressive industrial relations in an atmosphere of partnership between unions and employers. UNIFI has recognised Barclays need to reshape the business, and the bank has recognised the union's need to protect the employability and job security of its members."

Ed Sweeney, UNIFI's general secretary, said: "All across the service sector we are seeing possible and actual job migration to areas where labour is significantly cheaper.

"Many companies are just jumping on the bandwagon, others have made rational strategic decisions. Trade unions must ensure that they can deal with any situation in order to protect their members' interests.

"A positive agreement such as the one we have entered into with Barclays is the only constructive way forward and will set a measure against which other companies looking to outsource from the finance sector will have to be tested."

Forum Response: Barclays

Nigel Fretwell, employee relations director, said: "In the competitive environment in which we operate, we all recognise that businesses have to change and evolve if they are to continue to meet the needs of their customers and deliver all round value.

"If globalisation is an inevitability we cannot and should not ignore the responsibilities that are attached. This significant agreement we have negotiated with UNIFI gives us a solid framework to sensitively manage that change over the next few years, to keep job losses to a minimum and improve staff employability."

Forum Response: Chartered Institute of Purchasing and Supply

A spokesman for CIPS told ePolitix.com: "Offshore outsourcing has become a very sensitive issue over recent years and is no doubt going to become a more prevalent feature in today's business environment.

"We welcome the move by Barclays to involve and work with UNIFI on this matter and it may offer other organisations a blueprint for how outsourcing of this nature should be undertaken."