Unite calls for urgent action to shore up financial services sector

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Tuesday, 16, Sep 2008 12:00

Unite, the UK’s largest trade union with thousands of members working in the financial services sector, has today (Tuesday 16th September) called for intervention to restore confidence in the industry to protect its long-term stability.

In a week that the global financial markets continue to plunge, Unite wants an immediate assessment of the weaknesses and risks in the sector. The lack of trust in the sector is directly impacting workers in the industry as companies make thousands of job cuts to make short-term cost savings.

Graham Goddard, Unite Deputy General Secretary said: “This global financial crisis has sent shock-waves across the industry. It is apparent that the free market system has completely broken down. Confidence in the financial services sector has been shattered.

“Unite wants to see a stronger regulatory system in the financial services industry. It is now very apparent that the sector can not simply be allowed to continue to regulate itself. The corporate greed of large institutions has finally brought the financial markets to its knees. The major job losses in the sector are fundamentally caused by precarious investments and transactions by bankers pursuing large rewards. Unite wants to see greater penalties for institutions that play games with the future of their staff through dangerous exposure and investments.

“Those working in the sector must not pay the price for corporate greed. The government can not sit back and watch the sector lurch from one crisis to another.”

The position whereby big bankers take risks at the expense of the value of workers pensions and jobs can simply not be ignored. Without a more transparent regulatory structure the financial services sector will never restore the confidence which is so crucial for its future.

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For more information contact: Saba Mozakka, Unite Press Office on: 020 7420 8916 or 07768 693 953.