Earlier RBC Financial Group [RY:TSX] known in Canada as Royal Bank, Canada's largest financial institution was exposed by the CBC for what amounted to firing Canadian workers and replacing them with lower cost foreign workers under the government of Canada's Temporary Foreign Relief Worker program. For those unfamiliar with the program, in a nutshell, the program allows companies in Canada to bring in foreign workers when there is a shortage of trained people domestically. Example would be engineers for a Northern Alberta Oil Play.
The problem with Royal Bank is they have tens of thousand of employees, earn over $7 Billion in Revenues last year [largely from millions of Canadians that have banking products with Royal Bank: mortages, lines of credit, savings accounts, investment accounts and so on and so forth] and have a CEO [Gord Nixon] who earned $10 million last year and whose comp package rose to $12 million this year. So the expectation on the part of ALL Canadians is that RBC should employ CANADIANs first.
As a former RBC staffer myself, I can tell you one thing. This story was far from news to me. RBC has been doing this for years and they simply got caught and dragged through the media. And rightfully so...I personally think this is a disgrace.
Imagine for a moment a meeting deep within RBC in which Senior Executives looking to pad their bonuses decide to fire quality people at home and outsource or replace their positions with lower cost foreigners.
But to me the bigger questions are as follows...
1. Just the other day in an interview with CBCs Amanda Lang, Gord Nixon basically stated that there was/is no intention to replace Canadians with foreign workers...forget the exact terms he used...he's a GOOD weasel. But anyways today there's an official apology.
2. THE BIG ONE IN MY MIND is where is Prime Minister Stephen Harper or Finance Minister Jim Flaherty in all this??? Are the actions the bank is accused of not against Canadian Law??? Ans: They ARE against Canadian Law...yet no big "front page" response from Politicians. Translation: these jerks are in bed with the banks.
3. Why aren't big time CEOs outsourced???? At Mr. Nixon's $12 million annual premium I am certain the bank could find someone just as capable for a fraction of the cost. THAT would be a real savings.
In closing, I'd just like to encourage everyone with an RBC account to close it.
Hiring a pricey PR firm to do damage control while still sending TONS of money offshore really amounts to Jack Squat.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.