CFS and the joint Trade Unions have agreed an approach to organisational change that may consider outsourcing and some fundamental principles that will apply in these instances. These principles will not replace any existing CFS processes and/or procedures, and are based on best practice adopted in recent initiatives.

The principles are designed to provide employees with the reassurance that, if affected by any future agreements, the successful process to date to outsource Life and Savings Administration to Capita and the outsourcing of IT Development and Delivery to Xansa will be adhered to.

David Anderson, Chief Executive of Co-operative Financial Services, Cathy Wilcher, Director of Human Resources at Co-operative Financial Services, plus representatives from CFS Employee Relations, Amicus, Naco and TGWU were all present at the agreement signing which took place at the Head Office in Manchester.

David Anderson, Chief Executive of Co-operative Financial Services (CFS), said: "We are delighted to have signed the Principle Agreement with the unions. We have worked very closely with Amicus, Naco and TWGU to ensure we provide our staff with a level of assurance when part of an outsourcing agreement.

"The principles set out in the agreement are jointly recognised as best practice by all parties and underpin CFS' values and commitment to corporate social responsibility."

Amicus Regional Officer, Hugh Jones Glass added: "We believe that this agreement with CFS sets a benchmark for managing outsourcing agreements. It ensures that unions are involved in the decision making process at the earliest possible opportunity enabling Amicus to influence the outcome of CFS' discussions with 3rd party partners. The deal emphasises corporate social responsibility not just for CFS but for the 3rd party partner as well, and maximises the retention of skills and experience in the UK."