One of these concerns is the impact of the merger on employees in Luxembourg’s financial centre.
According to Roberto Mediola, president of the Aleba trade union, while all sides are attempting to calm the situation, employees at Crédit Suisse in particular are “very anxious,” mainly because of the announcements they hear in the press.
Crédit Suisse employs 400 workers in Luxembourg, while UBS employs approximately 550. They have been guaranteed “business as usual” as long as the takeover was not completed, according to Mediola. The takeover is expected to be completed before the end of the year.
However, management has yet to comment on the actual impact of the merger of two major banks with similar business areas.
Employees are theoretically shielded from economic dismissal for the first two years following a takeover, merger, or contract revisions, according to the collective banking agreement. In this specific case, however, it would be necessary to first determine if this statute applies.
Dismissals are also possible earlier with the consent of the staff delegation. Aleba said it is always ready to help affected staff when the time comes. “We need to prepare for the worst, but it is definitely not possible to foresee today where the journey will lead,” according to the trade union.
During the bank’s annual general meeting in Zurich, Crédit Suisse shareholders vented their anger over the competitor’s takeover. The bank’s management has likewise apologised and stated that it could not have been saved in any other way.
UBS executives, for their part, defended the takeover in front of the bank’s general meeting in Basel – despite the fact that the transaction would entail an enormous risk. The new big bank will thereafter oversee assets worth 5 trillion Swiss francs.
