The reputation of Royal Bank of Canada is getting tarnished after a mammoth announcement today, especially through a social media outburst with aggression, in light of the revelations that the bank has entered an outsourcing deal which will result in its staff losing their jobs to foreign workers. Indeed, RBC might have underestimated the response it might have received by blaming an independent supplier, and now the question left is that if the bank will be forced to take further action soon.
A report has alleged that the Canadian government is now investigating the subcontracting of several of the bank’s investor services back-office work to iGate Corp., which is a move deemed to cut off the jobs of 45 RBC employees in Toronto. Yesterday, RBC attempted to detach itself from the initial reports of the events. The bank’s chief procurement officer, Greg Grice, alleged that the “RBC agreements with suppliers, including in this case iGate, requires them to ensure that they are abiding by the applicable regulations. External suppliers allow us to leverage their scale and technical skills to continually improve our operation processes and service, and re-invest in initiatives that enhance the client experience.”
At the same time, the RBC’s chief human resources officer, Zabeen Hirji, stated that “we recognize the impact of this situation on our employees and we continue to remain focused on assisting our employees through this transition. We are working diligently to find suitable roles for those affected and it is our hope over the next few months to transition them to other positions.”
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