News: Swiss Bank Association appeals to halt Credit Suisse-UBS merger layoffs

Employment Landscape

Swiss Bank Association appeals to halt Credit Suisse-UBS merger layoffs

SBPV's Natalia Ferrara voices concern to Swiss parliament over Credit Suisse rescue talks neglecting affected individuals. Her letter demands halt to Credit Suisse-UBS merger layoffs.
Swiss Bank Association appeals to halt Credit Suisse-UBS merger layoffs

The Swiss Bank Employees' Association (SBPV) has called for a freeze on any job cuts in the Credit Suisse-UBS merger, according to an open letter addressed to the country's parliament.

Natalia Ferrara, the managing director of SBPV, has written to legislators urging them to prioritise the well-being of employees impacted by the Credit Suisse collapse. She has called for a pause on any job cuts until the end of 2023, according to a report recently published by Reuters. 

"We ... call on you to support our demand for a freeze on layoffs by the end of 2023 in parliament. Politicians must not shirk their responsibility," Ferrara wrote in the letter reviewed by Reuters. 

An extraordinary session of the Swiss parliament is scheduled for Tuesday to deliberate on the recent state-sponsored bailout of Credit Suisse that occurred last month.

UBS has entered into an agreement to acquire its Zurich-based counterpart, Credit Suisse, for 3 billion Swiss francs ($3.31 billion), in a deal orchestrated by the government, central bank, and market regulator as a strategic measure to prevent a collapse in Switzerland's financial system.

"For the past three weeks, many of the approximately 17,000 employees at Credit Suisse and the 22,000 UBS employees have been looking at their future with uncertainty," said Ferrara, referring to the staff numbers in Switzerland. 

Credit Suisse has a global workforce of 45,000 employees, while UBS has a total of 74,000 employees.

"In the public debate about the takeover of Credit Suisse by UBS, there is a lot of talk about numbers, money, regulation, 'too big to fail' or bonuses. But the affected employees of the two banks remain only a side note. That needs to change," stated Ferrara, whose organisation represents 6,000 workers in Switzerland.

Sergio Ermotti, the CEO of UBS, recently cautioned that the acquisition of Credit Suisse would entail "challenging decisions and changes" in the future. 

According to the Swiss newspaper Tages-Anzeiger, the newly formed merged bank could potentially reduce its workforce by 20% to 30%, resulting in approximately 11,000 job losses in Switzerland. However, UBS has stated that it is premature to speculate on potential job cuts at this time.

Ferrara emphasised that the need for rescue was not the fault of the bank employees, and she noted that it would take several months for UBS's plans to be formulated.

SBVP MD’s letter, which was initially published by the Swiss newspaper Blick, stated that "now it is time for the affected employees of the two banks to be given protection and respect."

"It must not be the case that parliament debates money and technical aspects of the CS rescue for days during the extraordinary session and the people affected are forgotten," she concluded. 

Read full story

Topics: Employment Landscape, Leadership, #Layoffs, #HRTech, #HRCommunity

Did you find this story helpful?



How do you envision AI transforming your work?