Lloyds Banking Group is set to outsource around 1,000 employees in its insurance unit to Diligenta, a UK-based subsidiary of Indian IT major TCS.

Under the arrangement, employees at Scottish Widows and Clerical Medical in Edinburgh and Bristol will be moved to Diligenta – which offers business process services for the life insurance and pensions industry.

The move will affect the bank’s employees in Edinburgh and Bristol, though the bank did not provide a precise timeline for the transfer.

Criticising the bank’s decision, Unite national officer Rob MacGregor said: “The wholescale transfer of 1,000 Lloyds Banking Group staff to Diligenta is nothing short of a betrayal of these workers. The bank’s ‘sale’ of its committed Scottish Widows and Clerical Medical staff represents contempt for long serving and skilled employees.

“The decision to simply sell off the workforce will come as a shock to staff at the bank. Unite is calling on Lloyds to reconsider this shameful deal and do the right thing by its staff who have worked hard to ensure the business is the success it is today.”

Unite said that the move will not protect staff pensions and other non-contractual benefits.

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