Germany's Commerzbank AG (CBK.XE) said Friday that 1,800 jobs in
its German retail branches, or about 11% of the retail jobs in
Germany, will be cut by the end of 2015. The bank's management said
it has adopted a policy statement to avoid compulsory redundancies
in the process.
The bank has said it plans to cut between 4,000 and 6,000 jobs
across its operations by 2016 as part of a four-year strategy plan
to boost revenues and cut costs. Job cuts exclude online banking
unit Comdirect AG and Polish BRE Bank SA (BRE.WA) unit.
In Germany, job cuts can be achieved by measures such as early
retirement, part-time work and natural attrition, thereby avoiding
outright layoffs.
MAIN FACTS:
-1,800 positions to be cut in the branch business of Commerzbank
AG by the end of 2015
-operational redundancies are to be avoided to the greatest
possible extent
-talks with employees' representatives started in January so as
to negotiate the implementation of the strategic agenda through to
2016.
-at the end of 2014, the bank and employees' representatives
will discuss on the basis of strategic growth objectives achieved
by this point in time whether further measures will be needed
-the branch business will be remodeled in the coming years,
regarding service model, flexibility, product range, individual
processes and the branch models.
-the bank will guarantee the actual functional capability of the
individual branches at all times. In particular, this means working
conditions that don't lead to any isolation of employees, but that
are consistent with employee protection legislation and the duty of
care on the part of the employer.
-the bank will adhere to the established legal and
collectively-agreed provisions such as existing collective wage
agreements.
-As in past years, the bank will achieve the job cuts through
mutual agreements and by using time-tested human resources
instruments.
-If 600 German full-time job equivalents (FTE) have been cut by
Dec. 31, 2013, there won't be any compulsory layoffs by Dec. 31,
2014.
-the bank aims to ensure that the changes are successfully
implemented by the bulk of the workforce. To that end, it will
involve the works council, comply with all employee protection
legislation, and the observation of social interests in the
implementation of this strategic change process
-"We intend to send out a clear signal that the talks are fair
and constructive," said Ulrich Sieber, management board member for
human resources. He added that that's the reason for adopting the
policy statement.
-Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com
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