UniCredit reaches contract with union to reduce headcount in Italy

Milan — Italy’s lender UniCredit has signed an agreement with the union to voluntarily reduce 1,200 jobs, partially offset by 725 new hires, the country’s largest banking union said Thursday. rice field.

The agreement follows the new three-year plan by the end of 2024, presented on December 9 by CEO Andrea Orsel, who took over from his predecessor Jean-Pierre Mustier in April.

At the time, UniCredit said it had not disclosed headcount reductions and had to negotiate with the union first.

The FABI union welcomed the agreement being reached overnight and said it was the first to have six news adopters for every 10 departures. Italian banking unions have traditionally sought to offset 50% of layoffs with the hiring of young staff.

The Italian banking sector layoffs are aimed at older employees as they are implemented exclusively through a costly early retirement program funded by lenders.

After the announcement of the “UniCredit Unlocked” 2022-2024 plan, the Italian trade union stated that it had 950 voluntary turnovers and 475 new hires through early retirement.

FABI said an additional 250 headcount reductions were agreed, but were completely offset by 250 new arrivals.

UniCredit also made 1,000 temporary employment contracts permanent in Italy, FABI said.

During Mustier’s tenure, UniCredit reduced employment by 14,000 in its 2016-2019 plan. The second plan, presented in December 2019 and scheduled to be implemented by 2023, envisages an additional 8,000 reductions, of which 6,000 will be in Italy. The bank finally agreed to leave 5,200 people in Italy and hire 2,600 new people based on the plan.

UniCredit has targeted central functions and international hubs with the latest reductions, as most of the previous redundancy has hit the bank’s branch network.

According to FABI, 83% of new employees will increase branch staff and the remaining 17% will be engaged in digital banking.

By Valentina Za