'Stingy' bank leads way on childcare

BANKING giant HSBC, recently branded 'the world's stingiest bank' by union leaders, is to offer all its workers nursery places and childcare vouchers for children up to the age of 16.

The world's third-largest bank said it will double the number of workplace nurseries it provides to 170 across the country as well as offering vouchers to employees who want another form of childcare.

HSBC said it will be the first company in the country to make the dual offer of either in-house or vouchers to all its staff with children up to age 16. It claimed the scheme effectively amounted to a 6.5% pay rise.

All 57,000 staff will be eligible, including those working for HSBC's 24-hour banking service First Direct. Around half the bank's workers have children under the age of 16.

Under the new scheme, workers will be able to choose nursery places or childcare vouchers, or both, instead of salary. The bank said the scheme will be exempt from tax and National Insurance payments which will save workers money.

Sue Jex, head of employee support, said the bank had been offering childcare support since 1988. 'Our nurseries have proved so popular with staff that we now have waiting lists. We are working with a number of national nursery chains to at least double the number of workplace nurseries available to the under fives.

'The new voucher scheme will not only allow more parents and carers access to subsidised childcare, but is flexible. Because vouchers also cover care for youngsters up to 16, the benefits go on for much longer.'

However, workers at UK branches of HSBC are still threatening to strike. Trade union Amicus last week balloted its 10,000 members at the company on whether the planned strike on 27 May will go ahead. The result will be announced on 9 May.

Amicus said that about 55% of British HSBC workers covered by its pay negotiations received no salary rise or were given an increase below inflation this year.

HSBC insists only 1% of staff did not get a pay raise or bonus, of whom 80% had an unsatisfactory performance rating. With 2004 profits rising 37% to £9.2bn, Amicus has described the bank as 'the world's stingiest bank', a play on its slogan 'the world's local bank'.