Job Loss Survey 2013

www.uniglobalunion.org 2 Job Loss Survey 2013 Table of contents Introduction 5 Seven Key Trends 5 Policy Recommendations and Real Banking 7 Conclusion 9 Data Summary Tables 9 Data Summary: Profits and Jobs in large Banks 10 Data Summary: Job cuts in the Finance sector 11 Endnotes 15 Front page picture: Bank sector demonstration in Greece, with banner saying: «Society above numbers» 3 4 Introduction As the sector continues to adjust following the 2008 crisis, at least another 192’667 jobs have been Banking – The Human Crisis is the lost in the finance sector in 26 second edition of UNI Finance countries since 2011, of which Global Union’s worldwide survey 134’051 were in Europe. on job losses and restructuring in the finance sector. The job cuts continue in the wake of non-ending restructuring as a The survey was carried out with Brazil bank sector strike: time to share profits result of the financial crisis in UNI Finance affiliate unions in 26 Europe, Asia-Pacific, the Americas countries. and Africa. 2. Finance workers are being put under pressure to sell financial products • In Europe: Austria, Belgium, “Now there is a race to lower costs” Denmark, Finland, France, Ger- FNV, Bondgenoten NL many, Greece, Iceland, Ireland, The pressure to sell financial prod- Italy, Luxembourg, Romania, ucts is prevalent worldwide, and In some countries, the cuts are Spain, Sweden, The Nether- often sales targets do not take the accelerating whilst in others the lands, and The UK (16 coun- economic environment into consid- trend is leveling-off or even slow- tries) eration. Performance related pay ing down. • In Asia-Pacific: Australia, Fiji, structures increase this feeling of Malaysia, Philippines pressure on workers. • The trend is still accelerating in • In Africa: Burkina Faso, 7 European countries: Austria, Ghana, South Africa “Targets are unachievable and training Belgium, Denmark, France, is mostly e-learning” • In the Americas: Brazil, Greece, Luxembourg, Romania - Pro Finland Grenada, Venezuela. and The Netherlands. • Responses from Asia/Pacific, The pressure to sell is reported to Compared to the previous edition, the Americas and Africa show a be especially strong in Austria, the 2013 survey goes further in clear acceleration, with the ex- Ireland, Italy, Spain, the UK, Aus- identifying seven key trends taking ception of Australia where job tralia, Fiji, Malaysia, Brazil and place within the sector and in- losses are levelling off at a high Burkina Faso. cludes first-hand accounts of fi- level. nance workers and union mem- • While levelling off or slowing bers. This report presents these Performance related pay has been down in the 9 other European trends, alongside possible actions scrapped in Iceland, Ireland and countries, albeit from a very high for the future. Greece since the crisis. In many level for some countries such as cases this has amounted to a sal- Ireland, Spain and the UK. ary cut but has not lessened the Seven Key Trends Banks are still aiming for 10 to pressure to sell. 15% ROE. 1. Deep restructuring continues Some best practices are reported in the wake of the financial European Banking Autority in Denmark and Finland with more crisis (Endnote 1) consultation and negotiation on targets. Targets in these countries www.uniglobalunion.org 5 Banking services to customers “Front line workers suffer extremely 5. Active union campaigns out- rank as the worst performing strong pressure and disciplinary meas- side of Europe compensate ures with strong impacts on health.” cluster. for the absence of collective - Fesbaci, Burkina Faso agreements. European Commission Older workers are being laid off or (Endnote 2) In Europe most job losses at large given early retirement while new companies are dealt with under a are reported to be linked to cus- workers are hired on less favour- collective agreement. Negotiations tomer service, and the working able conditions, such as positions are in place in nearly all large com- situation is often described as with one-sided flexibility. panies as well as EWCs in 50% of manageable. Training funds have cases. Union campaigns are taking been set up in Denmark and Nor- Women very often still suffer from place in 2/3 of companies. way. unequal representation in function and salary. In the Americas and Asia, union campaigns dominate as there are “Women are in lower paid functions mostly no collective agreements or and in the same function their payment negotiations in place, except for is lower. This has not changed in the some in Australia, Malaysia and last 4 years.” the Philippines. - GPA, Austria Italian campaign for a cap on top managers pay In consequence, in Europe, collec- 4. Offshoring and the domino tive bargaining is more affected effect 3. Most job losses are affecting than workers participation (1/2 ver- front line, back office and IT sus 1/5) while worldwide worker positions Offshoring has reduced jobs in participation is more affected. Australia – with Asia, particularly Philippines and New Zealand Worldwide, front line and back of- “Reaching the target is not enough. benefiting. Australia and Malaysia fice jobs are most often being lost. Supervisors send emails to all giving have both seen call-centre job IT jobs follow but these losses are the names of those who failed. I am losses. looking for free psychological counsel- only half as prevalent as the previ- ling, I fear I will have a heart attack ous two. soon." The UK, France, Italy, Finland and Employee at international bank Call Denmark are sending jobs off- Highly qualified jobs are also being Center, Brazil shore, and, with the addition of cut in Denmark, Finland, Greece, Spain and Iceland, off-shoring is Spain, and UK as well as in Vene- meaning call centre job losses too. 6. The poor health of finance zuela and Ghana. workers is becoming the next Open economies require streng- phase of the financial crisis thened social protection and insti- Legal and compliance jobs are tutions in the face of increased being cut in Ireland, Spain and Worldwide, workers' health is the instability. Venezuela. They are being created most affected due mainly to strong in The Netherlands, Luxembourg, pressure to sell, the fear of unem- Denmark, The United Kingdom, Pr D.Rodrik Harward ployment and having to face angry Iceland and Sweden. (Endnote 3) clients. www.uniglobalunion.org 6 “There is a loss of know-how as older Policy Recommen- 2. Restructuring processes in the workers leave, anxiety in the 44-55 Financial Industry - UNI Finance age range. A report showed that psy- dations and Real Position Paper (http://bit.ly/1cuxJJV) chological harassment is highest in the 3. Charter on Responsible Sales of banking sector, hurting 12% of employ- Banking Financial products - UNI Finance ees.” Model Charter (http://bit.ly/15mC79o) - OGBL, Luxembourg Policy recommendations 5 years into the restructuring of the fi- More than 80% of affiliate unions nancial sector. Within this framework we flesh out our policy recommendations in Europe are reporting health with more specific union actions problems. Half said their personal UNI Finance is advocating for a taking into account the results life is also taking a blow. well-run and sustainable banking of this year's job loss report: system that can support the real 7. Restructuring is having a economy, social welfare and job Restructuring negative impact on business creation within and outside the risk and productivity banking sector. Î Banks are still restructuring due to deleveraging, de-risking in order to comply with regulation but also Restructuring is backfiring onto Banks have a crucial role to play by to persistent sector culture where business and productivity in some providing a service to society: “Real investors demand high ROE tar- respects with over one third of af- Banking” is the financial intermedia- gets. filiates in Europe and all in Asia tion between economic actors. This reporting that productivity at work real function of banks has a very is being negatively affected. high economic and societal value As a trade union we cannot accept but has been pushed aside by the arguments of the banking sec- speculative investment banking. tor leaders that restructuring and “There is a problem with clients’ trust in job losses are a consequence of banks” tighter regulation. This standpoint - Verdi, Germany The disconnect between wages is then used to argue for weaker and productitity can be traced back to shareholder pressure. regulation. Business risk is increasing due to the loss of first-hand information. One third of European respon- International Labour Organization Fair restructuring: If banks retain dents, and all Asian ones, say (Endnote 4) their earnings, equity will build up workers' confidence to report is- with little negative impact on the sues to management is being af- The 2008 financial crisis and the economy. fected for fear of losing their jobs. ongoing restructuring and regula- tory changes have led UNI to Pr. A.Adnati. Stanford (Endnote 5) adopt a position on three aspects of the workings in the financial industry, building a framework for In line with the position paper action in the financial sector: above on Restructuring, we argue for unions, employees, customers and employers to work together 1. Real Banking: the core business through continuous dialogue, of Sustainable Finance - UNI timely and proper information to- Finance Position Paper. (http:// wards a successful and sustain- bit.ly/15UQeoS) www.uniglobalunion.org 7 able finance industry while safe- into early retirement and women in angry customers. Trade unions guarding core labour standards. getting access to better roles and need to raise the issue as a major pay. consequence of the non-ending Sales & Advice: under pressure culture of restructuring based on to sell financial products Offshoring and the domino ef- cutting labour costs.

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