Swiss Bank Employees' Association Calls for Freeze on Job Cuts in Credit Suisse-UBS Merger
Date
4/12/2023 3:13:12 AM
(MENAFN) The Swiss bank Employees' Association has written an open letter to Switzerland's parliament demanding that Credit Suisse and UBS freeze any job cuts planned as part of their emergency merger. The managing director of the association, Natalia Ferrara, has requested that lawmakers consider the staff affected by the collapse of Credit Suisse and halt any job losses until the end of 2023. She stated that politicians must not shirk their responsibility and called on parliament to support their demand for a freeze on layoffs.
The Swiss parliament is due to meet in an extraordinary session to discuss the state-sponsored rescue of Credit Suisse that took place last month. UBS agreed to buy Zurich rival Credit Suisse for 3 billion Swiss francs (USD3.31 billion) in a deal engineered by the government, the central bank, and market regulator to avoid a meltdown in the country's financial system.
Ferrara highlighted that for the past three weeks, many of the approximately 17,000 employees at Credit Suisse and 22,000 UBS employees have been uncertain about their future. Credit Suisse employs 45,000 people globally, while UBS has 74,000 in total. The Swiss Bank Employees' Association represents 6,000 workers in Switzerland.
Ferrara expressed concern that in the public debate about the takeover of Credit Suisse by UBS, little attention has been given to the affected employees of the two banks. She emphasized that it is not the fault of the bank employees that the rescue was required and added that it would take months for UBS's plans to be worked out.
UBS Chief Executive, Sergio Ermotti, warned last week that there would be "change and hard decisions" ahead following the takeover. The Swiss newspaper Tages-Anzeiger has reported that the giant bank created could reduce its workforce by 20 percent-30 percent, with 11,000 jobs being cut in Switzerland. However, UBS has stated that it is too early to speculate on job cuts.
Ferrara urged that it is time for the affected employees of the two banks to be given protection and respect. She emphasized that it must not be the case that parliament debates money and technical aspects of the Credit Suisse-UBS rescue for days during the extraordinary session and forgets the people affected. The Swiss Bank Employees' Association has called for a freeze on job cuts until the end of 2023.
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