The BKP is preparing to “cut” the number of workers. The bank will start working from program of mutually agreed reforms and termination from next week. The decision was communicated to the employees of the financial institution by Miguel Maia this Wednesday in a note that Negotsios had access to. Unions say they can leave up to a thousand people.
“The process starts with this note, which I am addressing to all workers, and now I will continue to meet with unions, with the work committee and with DGERT, which may lead to some adjustments in how we planned the execution,” can be read in the note signed Miguel Maya.
“We expect that the period of compliance with the reform program and termination by mutual agreement will begin on June 16 and will last until August 18, after which, if necessary, to achieve reductions in accordance with specific criteria, which we considered to implement unilateral measures to reduce the number of workers. The end of the negotiation period is scheduled for September 20, ”says the executive president of BCP.
However, it is useless how many people can get away with this program. “We have not yet identified the conditions and the specific number of people that should be reached, as we understand that this should be known only after meetings that should be held with representative structures of workers, which, we assume, may take place before June 16. “. In the first quarter of this year, Portugal had seven thousand employees.
However, unions said in a statement sent this Wednesday that the decision could affect up to 1,000 workers. “Miguel Maia, CEO of Millennium bcp, met this morning with Maïs Sindicato, SBC and SBN to brief them on the decision to reduce the staff to 1,000 employees, the information was also shared today with the bank’s bank employees, “citing, noting that” if the process goes well from the bank’s point of view, it may not be necessary to get to a thousand exits. ”
According to the information provided to the unions by the CEO, “the plan will have a greater impact on central services and is justified, according to the CEO, by the introduction of technological developments that have reduced the need for the current number of workers.” In addition, “the bank is also cutting back on outsourcing services, leaving only those that have clear technological advantages,” they add.
Regarding the terms of the program, the statement says that “Only workers aged 57 and over will be eligible for retirement, but they can also be contacted for termination by mutual agreement (RMA). “
In the case of an RMA, “BCP offers 1.4 effective monthly remuneration (RME). Workers who are considering this opportunity should be aware immediately that they will not be eligible for unemployment benefits. ”
Reduce to improve efficiency
According to the CEO of BCP, in a note sent to workers, “When we presented the strategic plan Mobilization 2018/2021, we were convinced that the phase of economic recovery and the balance of government accounts in Portugal would be reached by the end of 2019. and that also by that date, the BCP recovery will be completed with the prospect that the staff adjustments that we have already identified as necessary to ensure the bank’s competitiveness will be more relevant in 2020. ”
But the first quarter of 2020 was marked by a pandemic crisis that caused BCP to postpone its downsizing plans.
<< While it is expected that, given the nature of the crisis, the economic recovery will be good, there has also been an acceleration of the pandemic crisis and an increase in a number of trends that were already expected over a longer time frame, as well as how this has exacerbated the impact of a number of specific factors that very significantly affect and condition the competitiveness of banks headquartered in Portugal, ”reads the note.
This includes “changing customer interaction habits and preferences”, “strong incorporation of technology into business models and processes in the financial sector,” but also “customer demand for prices with very low margins due to their ability to today they can use any bank or financial services operator (banks, Fintechs, BigTechs) at no additional cost. “
In addition, says Maya, “the efficiency of the bank’s business model should ensure sustainable profitability at a level higher than the cost of capital that we use, because if we do not, we do not (ROE 3.1%, 5, 1% and 5.2% in 2020, 2019 and 2018 respectively), it will not be possible to achieve the prosperity necessary to adequately reward workers. ”
The decision to reduce the number of workers “was taken on the basis of a thorough analysis of needs and existing capacity, taking due account of the specifics of the bank and the impact of new technologies on our business models and processes, as well as the expected evolution of BCP, which will be introduced to the market during the scope of the strategic plan review “, noting that “the restructuring to be undertaken will be intense and will not involve immediate cuts to levels equivalent to some of our major competitors.”
“The coming months will be very difficult. We must be able to implement the plan with minimal disruption to the bank’s operations, but we believe in the organization and the ability of people and teams to do it with the utmost rigor, ”he concludes.
(News updated with more information.)
