Lloyds TSB IT staff get "inflation-busting" pay rise

IT staff at high street bank Lloyds TSB are set to buck the market trend with an "inflation-busting" pay rise this year.

Although 'zero award' pay disputes are ongoing in other areas of the bank's operations this has not affected the group IT function, which has been given a 3.5 per cent pay boost across the board for the April 2005 review.

A separate "performance pot" has also been allocated for group IT along with a review of training provision both for technical and "soft" skills and the work/life balance. Around 10,000 people are employed by the group IT and operations function at the bank.

Negotiations were conducted between the bank and financial services union Amicus/Unifi, which described the rise as "inflation-busting" in a note to staff. Bernadette Fisher, national officer at Amicus/Unifi, told silicon.com that IT pay at the bank has been "volatile" in recent years and this new award is indication of "green shoots" of recovery in the market.

"There is beginning to be some movement in the market," she said.

That view is supported by a report out yesterday claiming the financial services sector has overtaken the public sector as the biggest employer of temporary IT staff due to renewed investment in IT projects.

Fisher also said the union will begin negotiations with Lloyds TSB and Fujitsu Services in the next few weeks over staff transfer terms for the IT outsourcing contract due to start in April.

"The crunch issue is pension rights and we are looking for favourable final salary guarantees on pensions," she said.