RBS job cuts provokes angry responses

April 8, 2009 at 3:39 PM
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GOGARBURN, Scotland, April 8 (UPI) -- The Royal Bank of Scotland said it would cut an additional 9,000 jobs, renewing anger over its former chief executive's pension plan and government oversight.

Robert MacGregor of the union Unite said the government, which now owns 70 percent of the bank, should stand up for the employees by focusing on jobs, The Times of London reported Wednesday.

"These employees are blameless for the position RBS is in, yet they are paying for the mistakes at the top of the bank," he said. "This bank, which is majority-owned by the taxpayer, must not be allowed to shed jobs and leave people on the dole."

Liberal Democrat Shadow Chancellor Vince Cable took a shot at former Chief Executive Officer Fred Goodwin's $1 million-a-year pension plan..

"As he enjoys his multimillion-pound pension, Sir Fred Goodwin should spare a thought for the thousands of people he has now put out of work," Cable said.

RBS earlier this year announced it would cut 2,700 jobs.

Chief Executive Officer Stephen Hester, said RBS would save $3.6 billion in three years because of the cuts.

"We have set a new strategy for RBS to restore the bank to standalone strength as soon as practicable," he said.

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