Caixabank adjusts reorganisation plan again

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Caixabank reduces redundancy numbers

The strikes called by the unions at Caixabank have resulted in a second adjustment of the restructuring plan. Initially, the bank put forward a severance package for 8,291 employees, now the number is 6,452.

The reorganisation of Caixabank is a result of the merger with Bankia. The original 8,291 layoffs would have been the largest layoff ever in the financial sector. In April, Caixabank reduced the number of layoffs to 7,791. Now another 1,339 jobs have been secured and 1,839 fewer people will be unemployed than originally planned. A position elsewhere in the company is also being sought for 708 employees.

Unions are happy

Negotiations between unions and the bank have not yet concluded. However, UGT Secretary-General Pepe Álvarez is satisfied with the current result. He calls it a positive development that redundancy schemes (ERE) will be made on a voluntary basis as far as possible.

From now on, negotiations will focus on the forced relocation of workers given alternative work more than 100 kilometres from their current jobs. The unions want this to be a maximum of 75 kilometers, and that the displacement only takes place if it is strictly necessary.

Early retirement plans for 52 and 53 year olds

Caixabank has also made the voluntary redundancy schemes available to employees aged 52 and 53. BBVA did the same and received 4,045 requests for voluntary participation in the collective redundancy plan. With a final 2,735 voluntary redundancy plans, it is very likely BBVA’s reorganisation plan can be implemented without further redundancies. Caixabank also hopes employment can be terminated on a voluntary basis for the 6,452 employees facing loss of work.

Severance pay for Caixabank employees

All employees aged 63 or older who voluntarily leave the bank receive 20 pay days per year worked. Employees born in 1967 or before, and who have been employed by the bank for at least six years, receive a compensation of 57% of the gross annual salary. Employees born in 1964 or before that receive a compensation of €18,000. Also, employees born in 1965 receive compensation of €23,000 and employees from 1966 and 1967 receive €28,000.

All employees who make use of the voluntary redundancy scheme up until their 63rd birthday also receive a contribution to the pension scheme and health insurance.

Employees born in 1968 and 1969 and who have been employed for at least six years receive a contribution of seven times 57%  of their gross annual salary. That amount will be paid monthly until their 63rd birthday. They also receive compensation of €14,000 and remain registered with the Seguridad Social until the age of 63.

All other employees receive 40 pay days per year worked, with a maximum of 36 monthly benefits. In the event of an employment contract of at least six years, a compensation of €23,000 will be paid.  If this is not the case, this compensation amounts to €13,000.

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