The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64.1 - Monetary intermediation
400 jobs Number of planned job losses
200 jobs Number of planned job creations
Announcement Date
27 June 2016
Employment effect (start)
1 January 2017
Foreseen end date
31 December 2018
Description
Ubi Banca, an Italian banking group, announced that they will initiate around 1,650 redundancies to be implemented over the 2017-2020 time span. The net job loss is a result of the merger of a number of Italian banks including: Banca Popolare di Bergamo, Banco di Brescia, Banca Popolare Commercio e Industria, Banca Regionale Europea, Banca Popolare di Ancona, Banca Carime e Banca di Valle Camonica. This will require the creation of 1,100 new jobs, but in order to avoid an overlap of roles and responsibilities, the bank will also need to let 2,750 persons go resulting in a net employment loss of 1,650 positions.
The banks have agreed upon the merger, and the plan should be approved by their assemblies in September 2016. The details of the plan includes the provisions for the creation of a single bank through the merger of all seven banks by the first half of 2017. The deal is expected to benefit the financial stability of the banks and their overall profitability. The single bank will result in the closing down of about 290 outlets.
The relevant unions are not opposing the plan on the basis that the reductions occur by means of early retirements or incentivised dismissals.
Update, 11/12/2016: The management and unions agreed a net job loss of 400, as a results of 600 incentivised voluntary dismissals and 200 hirings. The target of 600 exits, to take place by June 2017, is expected to be easily reached as about 1,000 employees qualify for early retirement. Hirings will occur over the next two years. The agreement also entails the conversion from temporary to permanent contracts for 96 employees and another 700 exits as of 2018. The latter will be negotiated next year.
Sources
22 June 2016: Milano Finanza
27 June 2016: L'Eco di Bergamo
23 August 2016: La Rassegna.it
12 December 2016: Il Diario del lavoro
Citation
Eurofound (2016), Ubi Banca, Merger/Acquisition in Italy, factsheet number 88378, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/88378.
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