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BIFU Urges Birmingham Midshires to Stick with Royal Bank Takeover

Strategic Insights

— 1 min read

The leading finance union, Banking Insurance and Finance Union (BIFU), has expressed concerns over the potential takeover of Birmingham Midshires Building Society by Halifax, citing job losses and duplication of branches as the primary issues. BIFU representatives have urged the society to stick with its agreed takeover by the Royal Bank of Scotland, citing the preservation of jobs and branches as the central concern. The union claims that Halifax's offer would result in heavy duplication of branches, with retained branches being strained to bursting if all staff were redeployed.

Key Takeaways:

  • BIFU represents around 900 of the 1,400 permanent staff at Midshires and is urging the society to stick with its agreed takeover by the Royal Bank of Scotland.
  • The union estimates that the value of the pay-out to individual Midshires members would be around $630 under the Royal Bank offer and about $780 under the rival Halifax offer.
  • BIFU does not consider the Royal Bank to be the "great white knight" in this takeover, but believes its structure is more complementary to Midshires than that of Halifax.
  • Halifax's offer has been criticized for its potential to result in heavy duplication of branches, with retained branches being strained to bursting if all staff were redeployed.
  • The union is seeking a meeting with Midshires' management to express its point of view and raise concerns about the impact of the takeover on staff.
  • Midshires has expressed concerns about job guarantees for its staff, both with the Royal Bank and the Halifax, and has not recommended the Royal Bank's bid following the intervention of the Building Societies Commission.

Statistics:

  • 900 permanent staff at Midshires represented by BIFU (Source: BIFU statement)
  • $630 million Royal Bank's offer to Midshires (Source: BIFU statement)
  • $780 million rival Halifax offer to Midshires (Source: BIFU statement)
  • 1,400 permanent staff at Midshires (Source: BIFU statement)
  • 600 part-time staff at Midshires (Source: Midshires spokesman)

Sources:

  • Banking Insurance and Finance Union (BIFU) statement
  • Birmingham Midshires Building Society spokesman
  • Save Our Building Societies (SOBS) statement

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