The big banks will lay off thousands of employees this year, a process that has continued since the last crisis, but which should reach a new peak in 2021, with even BCP and Santander Totta admitting to resorting to layoffs.
At BCP, the plan to lay off workers began last week when the bank contacts every employee who wants to quit and presents the terms of the layoff (compensation values from the start). Employees can leave upon early retirement (for those aged 57 and over) or upon mutual agreement. In this case, the one who leaves by agreement does not have access to unemployment benefits.
However, the bank also acknowledged that it could resort to “unilateral measures”, and last week at a meeting with trade unions even spoke of a collective dismissal, indicating that this will affect “all those who do not accept the negotiation process.”
According to the unions affiliated with the UGT (the Portuguese Financial Sector Workers ‘Union, the Center Banking Workers’ Union and the Mais Union), the BCP’s intention is to lay off up to 1,000 workers. Between 2012 and 2020, BCP has already laid off almost 2,000 employees in Portugal, having 7,013 employees at the end of last year.
Santander Totta also admitted to resorting to layoffs.
At the end of April, it was announced that in the first quarter, it was agreed to lay off 68 workers and announced the layoff of another 100-150 employees, “whose functions have become redundant.” We are talking mainly about the workers of the closed stalls, who were asked to leave, but they did not agree.
In early May, after negotiations with unions associated with UGT, the bank decided to “temporarily” postpone unilateral measures to leave workers.
union protest
The National Union of Banking Technicians organized several protests against layoffs, calling for a phased program of voluntary layoffs, without pressure and on fair and balanced terms.
The official source contacted by Lusa sent in additional information for the end of the month, as volunteering is still being evaluated. Whoever leaves the job by mutual consent is not eligible for unemployment benefits.
On the union side, sources contacted by Lusa fear that Santander Totta will also move to a more muscular layoff process, as they have information that they are agreeing to leave fewer workers than the bank wants.
As of the end of 2020, Santander Totta had 5,980 employees.
Several union leaders contacted by Lusa said thousands of workers will leave the main banks this year. They also believe that the processes will be even more aggressive than those that took place during the last crisis and the intervention of the Troika, since there are large banks that allow staff reductions, because the proposed compensation is now lower and even because it is too high … is not equal to laying off 1,000 workers out of 8,000 or 6,000.
On the part of banks, the reasons for staff cuts are usually the same for all. They justify technological evolution, changing customer habits (few travels to agencies, telecommuting), low business profitability, the need to adapt costs to changing businesses and improve efficiency.
In September 2020, Bank Montepio announced an “expanded plan” to lay off workers through early retirement and termination of employment contracts to reduce the number of employees by 600-900 people.
According to an official Montepio source, in the first phase of the program (in the last quarter of 2020), 235 employees left, of whom 124 were laid off and 111 were laid off by mutual agreement (which gives access to unemployment benefits, since the bank received company status from the Government in the process restructuring). This year, the second phase of the program began with proposals for withdrawal by mutual agreement.
As of the end of 2020, the Montepio banking group employed 3,721 people.
At Caixa Geral de Depósitos (CGD), from which about 2,000 employees left between 2017 and 2020 as part of the restructuring process, management said that new quantitative headcount reduction targets would only exist once the 2021-2024 plan was approved. it is known that the state bank still has open plans to end its activities by mutual agreement and early retirement.
As of the end of 2020, CGD had 6,583 employees in Portugal. In the first quarter, according to an official source, “73 employees left for reforms, dismissals by mutual agreement or for other reasons.”
According to employee sources, Novo Banco, which laid off 2,200 employees between the end of 2014 and 2020, supports early retirement and consensual layoffs (guaranteeing access to unemployment benefits).
But the data already in existence is the same one that was released in February, when the bank indicated that the goal is to cut 750 employees by 2023, because according to the official source, there is nothing new.
As of the end of 2020, Novo Banco had 4,582 employees.
A source at BPI said the bank is offering employees early retirement. However, bank officials have not publicly provided information on the downsizing projects.
“At the moment we do not have any structured exit plan, but exit negotiations can always take place by mutual agreement. In these circumstances, this issue does not apply, ”an official source at BPI said. The bank closed 2020 with 4,622 employees.
According to a long series of Banco de Portugal, banks operating in Portugal laid off nearly 13,000 employees between 2009 and 2019. In 2020, just five major banks operating in Portugal (CGD, BCP, Novo Banco, Santander Totta, BPI) cut 1,200 jobs.
Downsizing of structures (workers leaving and branch closings) is common in all European banking. The layoffs that have already occurred since the previous crisis (started in 2008) should now take on new strength thanks to the pandemic crisis. Banks base their profits on cost cutting, analysts say.
