Trade unions in the banking sector have criticized J.P. Morgan SE’s Luxembourg subsidiary for allegedly using outsourcing to mask collective redundancies.

Trade unions in the banking sector are denouncing "disguised" collective redundancies and are pointing the finger at the Luxembourg subsidiary of J.P. Morgan SE. These practices "raise questions of ethics and social responsibility", wrote the Luxembourg Confederation of Christian Trade Unions (LCGB), the Luxembourg Association of Bank and Insurance Employees (ALEBA) and the Independent Luxembourg Trade Union Confederation (OGBL) in a joint statement on Thursday.

The unions criticise the practice of outsourcing activities and then dismissing employees with inadequate compensation packages. This strategy, they argue, allows the company to bypass more expensive redundancy plans, demonstrating a lack of respect for its workers.

"Redundancies should be a last resort," the unions stated. "When they are unavoidable, they should be managed in a way that minimises the social and financial impact on the affected employees."