Tue. Jul 16th, 2019

The unions warn that 30,000 jobs are in danger with the merger of Deutsche Bank and Commerzbank | Economy

The unions warn that 30,000 jobs are in danger with the merger of Deutsche Bank and Commerzbank | Economy

The potential merger between Deutsche Bank and Commerzbank, the two largest banks in Germany, threatens to destroy up to 30,000 jobs, according to initial estimates by the Ver.di union and organizations such as the Bavarian Financial Center. The figure supposes that practically one in five workers of the 140,700 employees that both entities added to the closing of 2018 would be affected. Both parties announced on Sunday that they were studying joining but assured that there is no guarantee that the operation will take place.

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"Unfortunately we would have to assume that in such a scenario there would be an immediate threat for 10,000 jobs and in the long term up to 30,000, especially in Germany," the head of the banking sector of the Ver.di union, Jan Duscheck, said in statements to the German network 'n-tv', collected by Europa Press. "From our point of view, such a merger would not serve to create a business model that would be sustainable in the long term," added the union representative, who sits on the Supervisory Board of Deutsche Bank.

In this sense, the director of the Bavarian Financial Center, Wolfgang Gerke, believes that the merger between Deutsche Bank and Commerzbank "does not make any sense", noting that both entities are still are addressing inherited problems, as the integration of Postbank. "If suddenly you have to lay off 30,000 employees that generates scandal," Gerke said, also in statements to the n-tv.

For his part, the vice president of the DSW association, focused on the protection of retail investors, Klaus Nieding, fears an even greater negative impact on employment. "I'm afraid we're talking about potentially five-figure job cuts, between 30,000 and maybe 50,000 jobs," he says in the newspaper. Süddeutsche Zeitung.

The possible merger of Deutsche Bank and Commerzbank, in which the German state has more than 15% of shares, has been flying over the sector during the last months, although to date both banks had denied it. Last week, when merger speculation gathered momentum, trade unions with representation in the two companies criticized the possible transaction that, in their opinion, would result in dismissals irremediably.

Last February, the Cerberus investment fund, which owns 3% of Deutsche Bank and 5% of Commerzbank, backed the merger between the two entities, although a few months ago it opposed it. Among the reasons that supported this change of opinion were the evolution of the price of the shares of both banks, as well as the perspective that the merger would allow to address in better conditions the rapid technological changes in the banking sector.


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