Saturday, May 25, 2013

Royal Bank issues supplier code of conduct after outsourcing ...

Royal Bank of Canada introduced on Friday a set of rules and restrictions on how its suppliers can use temporary foreign workers, a move that comes a month after a media firestorm which prompted a public apology from its chief executive.

RBC introduced a ?Supplier Code of Conduct? on Friday, including a stipulation that its ?suppliers will not hire foreign workers from outside of Canada when performing services on behalf of RBC, where a worker eligible to work in Canada is available and able to perform the service.?

The bank also said it would monitor its contractors? compliance with this ?code? and include their findings in its annual corporate reports.

In April, RBC became the target of public condemnation because its supplier, iGATE Corp., brought in 45 temporary foreign workers to replace staff in RBC?s Investor Services division in Canada. These jobs were to eventually be transferred abroad.

The controversy prompted RBC CEO Gord Nixon to issue a public apology in an open letter, and offer assurances that the 45 workers would get comparable jobs elsewhere in the bank. He also promised that no other jobs would be outsourced.

Ottawa is reviewing whether RBC violated the rules of the temporary foreign workers program ? aimed at allowing companies to hire foreign workers when Canadians are not available, and alleviate labour shortages ? by subcontracting work to the global outsourcing firm. iGATE?has said it will ?fully co-operate? with the investigation.

On Friday, RBC further stated in its new code, that it ?will not offshore work where salary savings is the primary reason and will make every effort to source in Canada.?

?For example, RBC?s Canadian client call centres are located in Canada, supporting RBC?s domestic and U.S. business, and they will remain in Canada despite the trend in many industries to offshore them,? the bank said in a statement.

Source: http://business.financialpost.com/2013/05/24/rbc-issues-supplier-code-of-conduct-in-wake-of-outsourcing-backlash/

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