RBC apologizes, Bontis comments

Admitting his company has been in the news this week in a way no company wants to be, the president and CEO of RBC is making a public apology to the workers affected by the bank’s outsourcing arrangement with a foreign company.

The apology follows enourmous backlash against the bank after some of its Canadian information technology workers complained they were being replaced by foreign workers, employed by a company contracted by RBC. iGate brought its own employees into Canada on temporary foreign worker visas so they could be trained at RBC.

In a public letter today Gord Nixon said “despite our best efforts, we don’t always meet everyone’s expectations, and when we get it wrong you are quick to tell us.” He went on to make a number of commitments, saying “first, I want to apologize to the employees affected by this outsourcing arrangement as we should have been more sensitive and helpful to them. All will be offered comparable job opportunities within the bank.”

“Second, we are reviewing our supplier arrangements and policies with a continued focus on Canadian jobs and prosperity, balancing our desire to be both a successful business and a leading corporate citizen.”

“Third, our Canadian client call centres are located in Canada and support our domestic and our U.S. business, and they will remain in Canada.”

Business and financial expert Nick Bontis of the DeGroote School of Business joins us to talk more about the Royal Bank’s response and outsourcing.