R ESPONSIBLE RESTRUCTURING IN THE E UROPEAN
BANKING SECTOR : C OMPARATIVE
PERSPECTIVE AND LESSONS LEARNT
B RUS S ELS , N ATI ONAL S EM I NAR EUROSOFIN,
11 F EBRUARY 2 0 1 5
D R VAS S I L K I ROV,
PATRI CK T HI LL
LIS ER , L U X EM BOURG
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OF THE PRESENTATION
• Objective of the presentation
• Methodology of the research
• The drivers and processes of restructuring
• Sectoral social dialogue and restructuring
• Enterprise level dialogue and restructuring
• Conclusions and policy implications
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1. O BJECTIVE
The focus of our paper resides in the better
understanding of social dialogue in the banking
sector in Europe in terms of anticipation and
management of restructuring
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2. M ETHODOLOGY
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AND DATA
• Qualitative based methodology
• Desk-research – relevant reports, documents of
social partners, collective labour agreements, press;
• In-depth interviews based on a common guideline,
transcribed and analysed - sectoral unions, sectoral
employers, enterprise level unions, HR managers,
experts – in five EU countries;
• Discussions of the preliminary results with the
stakeholders at national seminars held in 2014.
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R ESTRUCTURING –
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RESTRUCTURING
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DEFINITION AND CONTEXT
• Modification of the company workforce, both quantitative
(number of jobs) and qualitative (skills, qualifications),
following changes in company structure, organization or
production processes (European Commission, 2008).
• Not a new phenomenon, but there is evidence that its scope
and speed have increased in the European Union since the
beginning of the financial and economic crisis started in 2008
– 2009
• Different policies and measures in the European Union
members – in order to mitigate the negative consequences for
employees, economies and territories, often as a result of
social dialogue.
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T HE
COMPARATIVE EXERCISE
–
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LIMITS AND APPROACH
• Difficulties to compare practices embedded in the
history and institutions
• Larger or narrower focus?
• Importance of the elements
• Different path dependency and role of institutions
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3. T HE IMPORTANCE OF THE BANKING SECTOR IN E UROPE
• Long term national history – change of ownership,
concentration, internationalisation, single
market...
• Major employer and contributor to the GDP in
Europe but experiencing difficulties…
• Changing employment models and skills…
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FACTS
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AND FIGURES FOR THE COUNTRIES EXAMINED
Processes/Drivers
Austria
France
Romania
Luxembourg
UK
Concentration
809 (40% decreased,
compared to the
1980s)
390 banks in 2013
(1556 banks in 1984)
40 banks in 2013 (40
in 2004)
149 in 2014
332 in 2010 (595 in
1986)
Changes
Privatization in the
1980s and 1990s
Permanent change
Privatization in the
1990s
Rapid
internationalisation
during the 1980s and
1990s
Processes related
Domestic
employment
relatively stable and
employment in the
subsidiaries in
decline after period
of strong growth
Relatively stable
employment,
Retiring population
in France – a buffer
to jobs preservation
Significant
employment
decrease since 2008
- 2009
Job losses in the
banking sector
partially
compensated by the
development of the
professionals of the
financial services
(PSF) and the fund
industry
The October 27 1986
‘Big Bang’: a massive
deregulation of
financial markets,
rapid growth of the
financial sector since
then
Significant job losses
since the crisis
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RESTRUCTURING DRIVERS
• Effects of the crisis
• The (new) regulations
• New technologies and expectations of the clients
• Outsourcing
Mitsubishi UFJ Financial Group Inc. will trial the device in two branches in Tokyo
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I MPACT
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IN THE COUNTRIES EXAMINED
Processes/Drivers
Austria
France
Romania
Luxembourg
Effects of the
Crisis
++ (decrease of
activity, risk of
the operations
in CEEC, state
support)
+ (minor
impacts)
++ (decrease of
the activity)
++some impact +++ serious job
of the crisis (e.g. losses
public
support+++)
New regulations
++ impact on
compliance
++
+ impacts
++ (especially
the automatic
exchange and
the abolition of
the banking
secrecy)
+++
New
technologies
+++
+++ ()
+ (yes, but still a
smooth change)
++
Outsourcing insourcing
+++ (strong
impact on noncore and core
activities)
+ (some
outsourcing is
taking place)
++ (Romania is
benefiting from
in-sourcing)
+ (some
outsourcing is
taking place)
+++ (strong
impact, but no
concrete
estimations)
++
Impacts on
current and
future
restructuring
UK
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Sectoral Collective Bargaining and Social Dialogue
E
n
t
e
r
p
p
r
i
s
e
S
D
+
United
Kingdom
-
Romania
France
Luxembourg
Austria
Country models of
employment relations
-
+
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DATA FOR THE SECTOR
Austria
Trade unions
France
GPA-DJP, union of Several unions
white-collars
present, CFDT,
CFE CGC, CGT,
Romania
Luxembourg
FSAB (Cartel-Alfa) ALEBA
LCGB
UK
Unite the
Union
OGB-L
CGT FO, CFTC
Trade union
density
About 25%, lower 9%, higher than
than the average the average
Employers’
organisations
Five different
employer
organizations
L’Association
Française des
Banques (AFB)
(Commercial
banks) and the
Fédération
Bancaire
Française (FBF the whole
banking sector)
About 15% of the
employees
working in the
insurance and
banking industry
Council of the
Banking
Employers in
Romania (CPBR),
since April 2014
38 – 39% trade
union density of
ALEBA, no data
about the two
other unions
ABBL
30,5% (2006)
No
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Austria
France
Romania
Luxembourg
Sectoral level
dialogue
Yes, 5 subbranch
agreements are
negotiated
Yes
No, except skills Yes
institutionalized
dialogue in the
field of
professional
training
no
Company level
dialogue
Yes, in most
banks
Yes, in most
banks
Yes, in most
banks
Yes, in most
banks
Yes, in major
banks
Collective
bargaining
coverage
Almost 100%
98,7 % of the
employees
covered
(estimation
2007)
40% of the
employees are
covered by CLA
100%, extension 38,1%
of the sectoral
collective
agreement
UK
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AND MANAGEMENT OF RESTRUCTURING : PHASES
Sectoral level
Anticipation
Management
Company Level
Addressing the
consequences
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MEASURES / PRACTICES TO ADDRESS RESTRUCTURING
Measures/practices
Austria
France
Luxembourg
Romania
UK
Anticipation/sectoral
level
No
Observatory of the
professions;
IFBL analysis on
future skills
No
No
CLA for the
commercial bank
sector
Anticipation/company
level
No
GPEC agreements
The case of the large
French bank – BNP Paribas
Some company plans
that envisage
downsize – however
the speed of
restructuring is high
(BRD)
No
Support to transitions
New development –
e.g. work
foundations;
+++
Some internal
measures in the big
groups (e.g. BNPParibas), projects
such as Fit for
Finance
Rare, e.g. in the case
of BCR Erste
Selection pools in
LGB
Early retirement
schems
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IMPLICATIONS
• Reinforcement of anticipation at sectoral and company
level – necessary but not always easy;
• Management of restructuring – importance of the internal
mobility and internal labour markets, adaptation of jobs and
skills, agreements to support transitions, role of the collective
bargaining at both levels, international coordination…
• Addressing consequences – supporting transitions,
reintegrating dismissed back to the labour market – issues of
responsibilities and roles of stakeholders
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Thanks for your attention
For more information:
patrick.Thill@ceps.lu
vassil.kirov@gmail.com
http:///eurosofin.ceps.lu
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