No Ifs No Buts, John Prescott’s campaign against the proposed payment by RBS of £1 billion in bonuses to staff despite its spectacular failure and aggravation of the credit crisis, has succeeded in pressuring the bank to cut this figure to £175 million, the apparent legal minimum that could be paid under the existing contracts to staff. An apparent victory for people power as over 31,000 joined the on line campaign against the bonuses. Prescott issued a press release to both the media and supporters of his campaign in which he reported that
“You might have heard on the news that RBS have now agreed to pay out £175m in bonuses. This is 7% of what they paid last year and £825 million less than its reported they wanted to pay out this year. So I think this is a 93% victory for people power, common sense and Government intervention.”
Indeed it is a victory, as during the early parts of the hearing the banks were insistent that the bonuses represented a fair and just settlement for staff who had hit targets. However a lesser known part of the campaign was also to negotiate a better deal for counter staff at banks, which leads one to the question, who were these bonuses for in the first place. It can only be surmised that the bulk of the £1 billion was to pay for investment bankers bonuses, and in that case justice has certainly been served.
Where next though? Well Lloyds TSB the troubled High Street bank is also under pressure, both in terms of its failing share price and unstable balance sheet, and its plans to hand over similar bonuses to staff. The Campaign continues apace and as Prescott states
“…the bigger prize now is the fundamental review of our banking system to ensure we put fairness and stability right at the very heart.”
We couldn’t agree more, there are now 33,000 or so members of the campaign and growing, it is time to harness this people power and demand responsible capitalism.
