This is the case for any merger, and it is quite legitimate: the employees concerned are wondering about their professional future. In the case of the takeover of Credit Suisse by UBS, it is far too early to speculate on the consequences for employment.
The management of both banks will first identify synergies and then decide on the future structure of the company and the necessary changes. A process that may take months or even years.
In Luxembourg, a framework for job continuity already in place
Regarding the situation in Luxembourg, it should be noted that the collective agreement for the banking sector already provides a framework for continuity of employment in the event of a merger and acquisition. Article 6 on the termination of employment contracts stipulates that existing contracts are automatically taken over by the new employer. This article also aims to protect the employees concerned in the longer term, since during the first two years no termination of contract can be due to reorganisation or rationalisation measures resulting from the merger.
The Luxembourg financial centre continues to develop
With regard to the impact on the Luxembourg financial centre, it should be recalled that the trend towards concentration of banks has been underway for years in the banking market without harming either business, which has continued to grow, or employment, which has remained stable. On the contrary, it is a tight market where banks, like the private sector, are actively seeking talent.
Number of banks (31.12.2022)
|
Number of banks |
2018 |
2019 |
2020 |
2021 |
2022 |
|
EU |
78 |
73 |
73 |
70 |
68 |
|
Europe (non EU) |
21 |
20 |
20 |
19 |
22 |
|
Rest of the World |
36 |
34 |
35 |
35 |
31 |
|
|
135 |
127 |
128 |
124 |
121 |
Banks' total balance sheet (31.12.2022)
|
Total Balance sheet (billion EUR) |
2018 |
2019 |
2020 |
2021 |
2022 |
|
|
769 |
815 |
863 |
970 |
938 |
Number of employees (31.12.2022)
|
staff |
2018 |
2019 |
2020 |
2021 |
2022 |
|
|
26317 |
26334 |
26059 |
25966 |
26012 |
Source for the three tables: BCL