Northern Rock staff receive 10% bonus as customers struggle
Government owned Northern Rock has today revealed that all staff will receive a 10% bonus this Friday in recognition of their dedication to the nationalised bank. The move has angered many in the city where the government has been attempting to pressurise UK banks into retaining as much cash as possible while at the same time rewarding Northern Rock staff after one of the most difficult years in the company's history.
It seems very much that the government takes two steps forward and one step back with regards to the banking industry. Appeals for increased liquidity have gone unheeded, cost-cutting is happening in a serious way and the government has regularly criticised the payment of bonuses during this most difficult period. Many people believe that employees of the Northern Rock are lucky to be in employment and the very fact that the taxpayer has acquired the bank and is also paying out the bonuses will not go down well.
This move at the Northern Rock comes just days after the government announced plans to relax the loan repayment schedule in relation to the £26 billion taxpayer led bailout which occurred some months ago. It seems in many ways that the government is saying one thing and doing another!
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