The move follows a comprehensive review of the branches and the successful transfer of the Faversham branch in 2001 and Ashford in 2002. It is currently the only UK building society to have an outsourcing operation in India.
UNIFI, the finance union, has described the decision as “a surprise move” and is concerned over the long-term prospects for staff. This in turn has surprised the society which said it has been in talks with UNIFI about the proposal for a number of months and claims to enjoy a positive relationship with local union representatives. It stated that any transfer would be subject to TUPE regulations and, in addition, it was negotiating on pension rights.
As the only building society based in Kent, the society said declared that it was determined to retain a high street presence while continuing to provide the highest standard of service to members.
A small number of established business partners based in Kent will operate the offices under agency arrangements. The argument is that the society’s members will then have the direct benefit of a continuation of building society services, together with access to additional facilities. Security and confidentiality will continue to be controlled and monitored.
Mike Lazenby, chief executive of the Kent Reliance, said: “Branch offices have served our members in Kent very well in the past but I, and the board of directors, have become increasingly convinced that if we are to continue to offer our members this valued and first rate service, this is the way forward.
“Our experienced and mainly long-serving staff are a tremendous asset. We hope to retain most if not all existing branch staff working under the new arrangements. It’s a win-win situation.”
UNIFI official Val Swain said: "Staff are very anxious about their job security. After taking a job for a building society they now face the prospect of working for a very different type of employer and obviously they are seeking re-assurances about their future careers. As far as we are aware it is unprecedented for a building society to sell off its entire branch network to be run as agencies. It is certainly a very bold move for Kent Reliance to take."
UNIFI is concerned over the implications this will have for banks and other building societies. The move follows Kent Reliance's outsourcing initiative where much back office administrative work has gone to India.
