Lessons from RBC outsourcing controversy

Bank hardly alone but will experience cause employers to re-evaluate tactics?
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 05/17/2013

Having a disgruntled employee vent his frustrations in a national CBC broadcast did no favours for RBC recently. David Moreau, who works in IT, claimed he was among a group of employees in Toronto who were being terminated after they trained a group of temporary foreign workers to do their jobs.

RBC’s initial response to the CBC story came from Zabeen Hirji, CHRO, who said it was outsourcing provider iGate that was supplying the workers for the transition and “moving your processes and operations to other suppliers is a business practice both within Canada and globally that is very well-established.”

But the situation garnered further attention, with Human Resources and Skills Development Canada (HRSDC) saying it was “unacceptable” if RBC was replacing Canadian workers by contracting with iGate, which was filling some of the roles with foreign workers.