Metrobank techies placed at risk of redundancy, severance terms criticised
- Reference: 1632738434
- News link: https://www.theregister.co.uk/2021/09/27/metrobank_techies_redundancy_at_risk/
- Source link:
Disgruntled techies working at the retail and commercial bank contacted us this week to inform of recent events that will affect people in the Architecture, Engineering and IT change teams.
A spokesperson at Metro Bank – the first new bank on the British high street in 150 years when it opened in 2010 – sent us a statement:
[1]
"We are moving to an 'agile' way of working and as a result are resizing and restructuring our change and IT teams. Fewer than 90 roles are impacted and we are creating 65 new roles in the IT and change world to support our new 'agile' way of working."
[2]
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The spokesperson added: "Colleagues impacted by the restructure are free to apply for the new roles if they wish to. We are currently running a consultation process with impacted colleagues."
Not everyone staring potential redundancy in the face is happy with the terms on the table.
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"The severance package offered is very disappointing: 2 weeks per year employed which is vastly different than the 1 month per year offered as the standard in the industry," said one.
We twice asked Metro Bank to comment on this but we've yet to hear back. We also asked what the 65 newly created roles will be comprised of; how large its IT department will be [Ed: not 65, surely?] ; and how will it become more, erm, agile.
Metro Bank refused to answer most of those questions but said: "The move to an agile way of working will improve the quality, speed and cost of change. It will speed up the time taken to get products to market, simplify decision making and allow us better manage our resources."
[5]Senior IBMer hit with £290k demand from Big Blue in separate case as unfair dismissal claim rolls on
[6]The magic TUPE roundabout: Council, Wipro, Northgate all deny employing Unix admins in outsourcing muddle
[7]Brit IBM veteran wins unfair dismissal case after 2018's Global Technology Services redundancy bloodbath
[8]IBM manager had to make one person redundant from choice of two, still bungled it and got firm done for unfair dismissal
The word "technology" was mentioned 19 times in Metro Bank's [9]2020 Annual Report [PDF] but "agile" was strangely absent.
The figures contained within show the company made a statutory loss before tax of £311.4m compared to a statutory loss before tax of £130m in the prior year. This included impairment charges and writes-offs of property, plants and equipment, and ongoing remediation costs, the latter being related to non-compliance with regulations to send SMS warning alerts to customers regarding overdraft charges.
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Revenue came in at £340.9m, down 15 per cent year-on-year.
IT costs in the year were £48.4m versus £33.8m in 2019.
Among the strategic priorities for the year is to improve and broaden the current product range, the bank said, "while investing in our colleagues and technology to enhance accessibility for customers." ®
Get our [11]Tech Resources
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[5] https://www.theregister.com/2021/09/23/ibm_shamayun_miah_court_cases/
[6] https://www.theregister.com/2021/09/10/employment_tribunal_wipro_northgate_highland_council/
[7] https://www.theregister.com/2021/02/04/ibm_unfair_redundancy_2018/
[8] https://www.theregister.com/2020/10/05/ibm_unfair_dismissal_birmingham/
[9] https://www.metrobankonline.co.uk/globalassets/investor-relations/metro-bank-annual-report-2020.pdf
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YVHqyiaTL50Wq@dkxZroeQAAAFY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[11] https://whitepapers.theregister.com/
Re: Industry standard redundancy terms?
Why would you expect a bank to go beyond the minimum?
Not unless the person being made redundant is a director or similar.
Re: Industry standard redundancy terms?
I snorted at that too... For 'industry standard' meant 'statutory minimum'...
Re: Industry standard redundancy terms?
Not so long ago the redundancy terms in the Financial Services sector were extremely generous. I know RBS was 4 weeks for each year of service when I joined, and prior to the takeover by RBS, some NatWest employees were on 8 weeks for each year of service, and I'm not talking Managers, "Appointed" grades (that's middle level techies and many other back office roles) were on these terms. Other Financial Services companies I interviewed with or worked as a contractor offered similar terms.
So "industry standard" was a thing
Times have moved on, and those who have started more recently do not get such good terms, but as an industry Financial Service was at one time a good place to be.
Re: Industry standard redundancy terms?
Payouts beyond the minimum are usually an indication that the employer thinks they may need the assistance of those leaving at some point in the future. They are common in industries with persistent skills shortages.
Moving to Agile working
Sounds like the PHBs are playing Buzzword Bingo again.
Re: Moving to Agile working
Why does this sound like we can fairly soon expect Metro Bank to join RBS/NatWest and TSB on the growing list of spectacularly mismanaged IT systems failures…?
Popcorn time?
What are the odds of the offboarding process to be run by HR droids and miss key stuff - like properly revoking sysadmin access rights.
Fire and hire
Sounds like the old "new contract, fewer benefits" scam - why not transfer at least some people instead of effectively firing and rehiring them?
typical doubles speak
stating "while investing in our colleagues and technology to enhance accessibility for customers." while putting almost 90 roles into "at risk of redundancy" & then wanting to retain 65 of those roles.
I'd hang on for redundancy and then take a break while looking for that next role.
Re: typical doubles speak
"I'd hang on for redundancy and then take a break while looking for that next role."
Given Metro Bank was founded in 2010, and the terms are allegedly "not very good", how many of those impacted actually have enough years of service to take the risk of being out of work. Market does appear to be buoyant, but given the rest of the omnishambles hitting the country, how long will that last...
[1]Agility is indeed required.
[1] https://thoughtcatalog.com/wp-content/uploads/2017/01/headupass.jpg
Agile isn't nebulous
But it is a term very often used incorrectly by people, and then described badly by others!
It all stems from this and anyone that actually understands it can gain significant benefits that, I suspect, Metro Bank has never managed to grasp:
https://agilemanifesto.org/principles.html
Re: Agile isn't nebulous
Not long ago, I was offered to lead a project with the following rules/constraints:
- It will use "agile" methodologies
- Budget is pre-defined
- Scope is pre-defined
- Deadlines are pre-defined
And then they wonder why I turned the "opportunity" down
Re: Agile isn't nebulous
You can assume anyone reading El Reg is fully aware of the Agile manifesto, what it was intended for, what it's been abused for since and where it's completely out of its depth.
'Agile'?
As in the 'Agile Ceremonies' in the UK Labour Party, where they sacked everyone?
If I had an account there I'd be quite agile about moving it.
Run away while you can
It sounds like they should take the payoffs and flee before the whole thing is closed down.
"...plants and equipment..."
You can write off your office plants in the UK? :P
Interesting
So, it looks like they're busy sacking 90 devs and whatever work was previously being done by 90 people will henceforth be done with 65 because Agile. It smells like they're trying to clear out the current crew in order to replace them with a fresh-faced bunch.
The Manifesto came out in 2001 (IIRC). Metro's been going 11 years. What's been going on for the past 11 years there if they're not already at least partly using Agile? Do they now have all the proper frameworks in place, or are they expecting to do that with the new 65 people, who may or may not be experienced in the finance world? It all just looks like cost-cutting.
I predict future security excitement when this shambles hits the fan. I'm glad I don't bank there.
Industry standard redundancy terms?
Wasn't aware there was one. There is a legal minimum (https://www.gov.uk/redundancy-your-rights/redundancy-pay). Why would you expect a bank to go beyond the minimum?