Legal & General (L&G) has delayed the closure of its Kingswood office until 2018, New Model Adviser® understands.
In August the company said it would close the Surrey site by the end of 2017. 1,700 jobs were thought initially to be at risk, with L&G saying at least 250 people would lose their jobs.
It is now understood that the closure will be delayed until the end of 2018, as staff go to a final ballot over whether to strike. Some staff have already left the office, with around 1,550 left.
New Model Adviser® revealed in September that in an initial ballot 90% of union members had voted in favour of industrial action, which would involve either a full walkout or ‘action short of a strike’ such as working to contracted hours.
A final ballot will now open this Friday 11 December and will close on 4 January next year.
L&G had previously told the Unite union that it was looking to relocate 1,300 staff to its other offices in Hove, Cardiff, London, Birmingham and Wittam. The company insisted today that there would be no compulsory redundancies if the Kingswood site closed, however.
Ian Methven, Unite regional officer for Maidstone, said that staff at the site had been given ‘no choice’ but to ballot for industrial action, and that the company’s communication of staff movements to other offices had been ‘patchy.’
‘We asked our members whether the closure would impact on customers, and no one stood up and said the closure was a good idea for customers or shareholders,’ he said.
‘The staff have now been left with no choice but to pursue industrial action. At every point we’ve encouraged the company to speak to members and tell them who will be moved to which site so we’ve done everything possible to make sure everyone’s got the information in front of them, but the membership is now frustrated with how long this has taken.’
‘We have asked L&G to tell staff where they’ll be going but that information has been patchy. Some people know which site they’re going to, some think they’ll be going to one of three or four, and some people don’t know at all.’
A spokesman for L&G said the company was ‘disappointed’ the ballot was going ahead, insisting ‘no decision’ had been made yet.
‘No decision had been taken on the potential closure of the Kingswood site,’ he said.
‘Unite and L&G have both agreed formal consultation has concluded on potentially closing the site.’
‘As part of the agreement, there will be no compulsory redundancies if the site closes, and Unite and Legal & General have agreed all other key terms for employees.’
‘We are disappointed that the ballot is being undertaken now given no decision has been made to exit Kingswood and after the conclusion of positive consultation.’
Source New Model Adviser.