Link to this page: http://www.socialistparty.org.uk/issue/502/3127
From The Socialist newspaper, 20 September 2007
Crisis will hit north east jobs
NORTHERN ROCK'S headquarters are in Gosforth, near Newcastle, and they employ around 4,700 people in North-Eastern England. The socialist spoke to one Northern Rock employee who said, 'We're all worried about our jobs."
Elaine Brunskill
She went on to explain: "Working at the Northern Rock's call centre is very target-driven, which means mortgages aren't always properly explained to people.
"Mortgages are routinely given to up to 125% of the purchase price of the house, and people are given amounts which are four, five or even six times their salary.
"Northern Rock have ruthlessly closed down local branches and pushed for internet banking and call centres.
The upshot of this has been many small investors moving their accounts because they no longer had a local branch with easy access to put money in or out of their account."
Many workers at Northern Rock are low-paid, but this is not the case for its CEO, Adam Applegarth, who was paid £1.3 million last year.
He reportedly took the job because he was allowed time off to play cricket during the summer. No doubt if he is made redundant he will receive a golden handshake.
In the US, big payouts to failed CEOs are known as golden condoms because they protect the bosses and screw the workers.
The Northern Rock, described in The Observer as the 'hungriest mortgage machine on the high street', has been the first British bank to be hit by this crisis, but the crisis won't end there.
Later developments may include problems around the future of Northern Rock Foundation, a charitable group that gives money to voluntary sector organisations in north-east England and Cumbria.
Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.
In The Socialist 20 September 2007:
Crisis will hit north east jobs
Socialist Students
Student Socialist: Issue 5 out now!
Flexible hours? Suits you sir!
Socialist Party NHS campaign
Swansea - no more cuts for cash
Socialist Party news
Victory! Campaign saves nursery
Lobby demands asylum for Sadiq
Socialism 2007
Make Socialism 2007 an unforgettable weekend
TUC Conference
TUC conference: Workers defy Brown
Linking the struggles together
International socialist news and analysis
Egypt: Worker militancy shows pressing need for political voice
Socialist Party review
Consumed: How markets corrupt children, infantilise adults and swallow citizens whole
Workplace news and analysis
Remploy workers fight for jobs
CWU: Further national action discussed
Home | The Socialist 20 September 2007 | Join the Socialist Party
Join us today!
Printable version
email to friend
