Lloyds Banking Group reportedly analyzed data from the personal bank accounts of over 30,000 employees during its pay negotiations. The UK’s largest lender used information about employees’ spending habits, savings rates, and salary increases for its lowest-paid workers, comparing this data to the financial situation of the general public. The analysis aimed to assess how well its employees fared during the cost-of-living crisis.
The bank stated it utilized “aggregated, anonymized data” to comply with regulations and to support its decision-making processes. According to Lloyds, presentations to unions indicated that employees’ finances were more resilient than those of the broader populace in recent years. However, concerns have been raised by union representatives. Mark Brown, General Secretary of the Affinity union, which is not officially recognized by Lloyds, criticized the bank’s actions, suggesting that accessing staff accounts without permission was unjustifiable.
During discussions, union officials expressed worry that the findings could be used to justify a lower pay offer. Lloyds denied these claims, though some correspondence indicated that the financial data of 36,000 staff members was utilized to conclude that employees were more financially stable than the general public, which, according to union officials, potentially undermined salary negotiations.
Employees are encouraged to bank with Lloyds, which raises questions about the implications of such policies. While the recognized Unite and Accord unions approved a pay proposal for junior colleagues that includes a 7% to 9% increase and a rise of £1,200 in 2026 and 2027, the Affinity union rejected the offer. The Accord union challenged the reliance on customer data but did not find Lloyds’ actions to be inappropriate.
Data protection experts have called for an investigation into the matter, questioning the transparency and fairness of the data analysis. The Information Commissioner may examine if employees were adequately informed or given the chance to contest the use of their account information. In response to the situation, a spokesperson for Lloyds expressed satisfaction with the support from recognized union members for its pay proposals.
Source: https://www.bbc.com/news/articles/c4gpy20rgq9o?at_medium=RSS&at_campaign=rss