Unions Force RBC's Hand: CEO insists that call centers will remain in Canada

Friday, May 3, 2013

call center service
RBC's CEO insists outsourcing in Canada
It turns out that money indeed talks.

Royal Bank of Canada Chief Executive Officer Gordon Nixon flew from Toronto to Vancouver in an attempt to appease Union representatives with a collective portfolio amounting to $4 billion invested assets.

The ruckus started when RBC had its share of the limelight when it laid off 45 employees in favor of a contract inked with outsourcing firm iGate. The public had been very vocal about its displeasure regarding the outsourcing scandal as foreigners were entertained at the RBC helm and hobnobbed with local employees. A handful of clients had threatened to close their accounts with the bank, yet the axe was more pronounced when B.C. Insulators Union warned the bank of its inclination to pull out assets that amount to $1 billion because it is unhappy with RBC's outsourcing maneuver.

CBC reported that Nixon called B.C. and Yukon Building and Construction Trades Council President Lee Loftus to discuss the notice, and the two chiefs conversed for about 40 minutes. Nixon then offered to hold a discussion with union representatives to clear the air, and Loftus took him up on the invitation.

Six unions were represented at the meeting with diplomats from the BC Federation of Labour, the Communications Energy and Paperworkers Union of Canada, the BC Government and Service Employees Union, and the Operating Engineers and the Building Trades witnessing the assembly.

Nixon informed the representatives that the bank is reviewing its code of conduct to guarantee appropriate business practices. He emphasized that the bank's call centers are “in Canada and will remain in Canada,” echoes Loftus in an interview with Times Colonist. Finally, Nixon requested that the unions review the final code of conduct in an effort to be transparent.

Despite the evident implications of Nixon's promises, at least the Canadians are reassured that their contact centers will remain in Canadian soil.

Photo credit: immuttoo on Flickr.