Lloyds TSB and job market security.

Know anyone who was employed by Lloyds, and no longer is? Give them a ring, perhaps it is with the savings from his layoff that Lloyds is able to play the role of Santa-Claus-like sponsor for the upcoming Olympics. There are no other opportunities for a graceful and thoroughly respectable publicity stunt of that magnitude. Last week Lloyds TSB Group and London Organizing Committee of the Olympic Games and Paralympic Games announced that Lloyds TSB has become the first domestic partner and the exclusive Banking Partner of the London 2012 Olympic Games. Rumor has it that the title and the privileges came with a hefty contribution tag of 80 million pounds.
Lloyds TSB increased second-half profits for the year 2006 by 22 percent by cutting its operational expenses. The bank transferred 2,800 jobs to India and eliminated 1,200 jobs. The focus on greater efficiency led to the loss of jobs at home. In press release published on Marched 13, Lloyds TSB enthusiastically reveled about job security reaching the 18-month high. Unfortunately, the conclusion drawn does not match the figures. In the survey conducted by the bank the customers were asked five questions, two of which addressed employment. The question “Do you feel your job is more secure or less secured than 12 months ago?” was answered positively by 22%, negatively by 21%, and 55% of the customers felt that it that there was the same. The question “Do you think employment prospects in the UK in general are better or worse in than 12 months ago?” was answered positively only by 15%, negatively by 37%, and 42% of the customers felt that is there was no change. Trevor Williams, chief economist of Lloyds TSB Corporate Markets, was quoted as stating that “On the back of continuing solid economic growth, consumers are regaining confidence in the security of their jobs and the UK employment market in general.” This startling conclusion seems to be based on the 1% percent difference in the answer to the first question (22% vs. 21%), while overlooking the 22% difference in answers to the second question completely (15% vs. 37%). Considering that over a third of Lloyds customers feel that employment prospects in the UK are down compared to those a year ago, it is unclear just what exactly is being applauded. Unless, of course, it’s a warm-up for the upcoming Olympics.
London 2012 Organising Committee Chairman Sebastian Coe is very pleased about Lloyd’s sponsorship, “…and I am delighted to welcome Lloyds TSB to the Olympic and Paralympic Family”. Sir Victor Blank, Lloyds TSB chairman is positively gushing, and hopes the sponsorship will encourage all Lloyds’ customers to attend. As Lloyds TSB continues to effectively reduce its operational costs, one might hope that a ticket to this spectacular, historical event will be a part of an employee severance package.

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