1,000 jobs to go at Standard Life

Standard Life is to cut 1,000 jobs by the end of 2004 following the company’s strategic review. This comes after a previous announcement that 360 of their sales staff are to lose their jobs.

Shadow First Minister Mr John Swinney MSP said today’s announcement was a devastating indictment of the Government’s complacent attitude towards the financial services sector, one of Scotland’s great industries. Mr Swinney highlighted three areas of major concern with the announcement:

* The extent of the job losses.
* The role of the London-based Financial Services Authority in the demutualisation decision.
* The company’s decision to end the defined benefit pension scheme.

Commenting, Mr Swinney said:

“This is a massive blow to both the Scottish economy and to the employees and families of all those affected.

“Financial services have been a bed-rock of the Scottish economy. But in recent years we have seen other countries power ahead in financial services, while both the Scottish Executive and the London government have been utterly complacent.

“Unless we take action now and give ourselves the powers we need to maintain this great Scottish industry’s competitive edge, we will continue to see announcements such as the one made today.

“Scotland has a world-famous financial services sector. We have talent and skills in abundance and we cannot afford to lose such talent from the Scottish economy. While the First Minister seeks new talent for Scotland, some of our existing talent will be lost with this decision.

“I am deeply saddened that the company has decided to go down the road of ending mutual status. The death of more and more Scottish mutual companies is a blow both to policy-holders and to the wider economy. But equally in our current status it exposes even more Standard Life jobs to the predatory eye of other financial services companies with little or no loyalty to Scotland.

“We need proper scrutiny of the role the London-based Financial Services Authority played in effectively forcing this decision to be made.

“I am also dismayed that once again pension benefits are being eroded for Scottish workers. Standard Life says consultation will begin now, but quite clearly this decision will deliver poorer pension provision for employees of Standard Life. That is no reward for a loyal and talented workforce.”