Job Losses in Barclays in Cardiff

Part of 4. Topical Questions – in the Senedd at 3:26 pm on 20 June 2018.

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Photo of Ken Skates Ken Skates Labour 3:26, 20 June 2018

The Member is right that there has been a significant number of jobs lost as a consequence of churn that's taking place within the call centre sector at the moment. But, equally, there have been a huge number of jobs that are being created in Cardiff, and, as a direct consequence of Welsh Government support, there is a good story to tell about jobs that have been secured at TUI in Swansea, at Which?, who are opening their first ever call centre in Cardiff, and Aon, as well as MotoNovo—all companies that have been helped by Welsh Government in creating valuable jobs.

However, with regard to this specific issue, again, my deepest sympathies go to those who were affected by the decision. Now, Barclays have assured us that 250 roles will be retained, including 44 vacancies that Barclays are aiming to fill in Cardiff, but this is a commitment that I want to see set in concrete, and I'll have a number of questions for Barclays on Friday. My message to the business will be very clear—that they have five values, based on respect, integrity, service, excellence and stewardship, and they need to demonstrate that their values go right to the top of the company in how they now deal with those workers who will be affected by the announcement. What's quite clear is that the decision will lead to a difficult task for Barclays in employing new people in Northampton, because at the moment they are struggling. My understanding, based on this morning's discussions, is that they're struggling to recruit people who are readily available in Northampton, and instead what will happen is that Barclays may find that they have to pay a premium in order to entice people away from other businesses. That's not good for them, it's not good for the people who are going to lose their jobs here in Cardiff, and it's not good for the businesses in Northampton, who will find that they will lose valuable staff as well. This is not a sensible decision in my view, and this is the message that I'll be conveying to Barclays.

Now, the reason behind the churn that I mentioned is that there is a significant change in consumer behaviour, and, subsequent to that, we are seeing a huge degree of consolidation take place across the UK, involving outsourcing and indeed resourcing to the UK. Whilst there have been wins for Wales—clear wins for Cardiff in recent times—and I've identified some of those businesses that we've assisted in creating jobs, there have also been losses. What is crucially important is that the Welsh Government goes on supporting new businesses to create jobs here but also goes on helping existing businesses to grow their operations. We've had a very, very good success story in recent times in terms of our customer contact centre sector, and also the wider financial and professional services sector, and it was the Wales contact centre forum just yesterday that announced figures concerning the south Wales economy and the number of jobs that are currently available.

The figure at the moment, the number of vacancies that are available in the sector, amount to—I believe it's over 1,145. Now, in addition, as a consequence of the investment Welsh Government is making in businesses, we'll see a further 800 jobs created by the end of this year, demonstrating that the sector is vibrant and strong in Cardiff and in Wales as a whole. But our attention right now—just as we've been assisting those who were affected by the Tesco decision, the Member is aware of the enormous help that's being given to those who are affected by that, and the consequence of which has been to find a huge, huge majority of workers alternative employment. We will do the same for those affected at Barclays, but first and foremost I will be relaying my views to Barclays that this is a bad decision for the company and a bad decision for those who will be affected by it.