Ross McDonald, Royal Bank’s vice president for The Bahamas and the Cayman Islands, said that most of the eight people affected are employed in the operations division. ﾑ
The functions of that section, according to Mr. McDonald, are being consolidated in the Cayman Islands where there is reportedly additional capacity and expertise.
“Those people will be working through the next four months to ensure a smooth transition,” he said.
He also said that the employees will be given the opportunity and are being encouraged to apply for employment within the Royal Bank Group, which includes FINCO.
He said that as vacancies arise over the next few months, the displaced employees would be given preferential treatment for those positions.
Mr. McDonald indicated that The Bahamas is not the only jurisdiction affected by the restructuring.
“There are a number of people affected in all locations including here in Nassau,” he saidﾴ
Mr. McDonald said that private banking business globally has been facing over the last years challenging capital markets, a lower interest rate environment as well as changes in the regulatory environment leading to tougher competition. ﾑ
He also said that the company aims to establish centres of excellence in the region and that The Bahamas specialization would be private banking for the region “run by one head of private banking located here.”ﾴ
The redundancies at the trust company come as concerns about the future of the FirstCaribbean International Bank’s credit card centre in The Bahamas re-surface.
Officials of the Bahamas Financial Services Union (BFSU) have told the Bahama Journal that banking executives seem to be continuing with their efforts to move the credit card centre’s business to Barbados.
BFSU officials say they will hold a demonstration tomorrow outside the Charlotte House offices of the credit card centre.
Earlier this year BFSU officials cornered Immigration Minister Vincent Peet as he made his way to the House of Assembly, urging him “to do something.”ﾴ
Minister Peet said, “The Government of The Bahamas will protect our people.”
FirstCaribbean employees in The Bahamas are not the only employees of the merged CIBC and Barclays Bank who are expressing dissatisfaction with the bank in its post-merger days.
Last week nearly 400 employees of FirstCaribbean Bank in Jamaica went on strike for three days.
The strike reportedly shut down half of the 12 Jamaican branches of FirstCaribbean.
Officials of the Bustamante International Trade Union, which represents the bank’s employees, said that they were concerned that the bank’s management had implemented a labour policy without consulting the union.
By Julian Reid, The Bahama Journal
