1. R ESPONSIBLE RESTRUCTURING IN THE E UROPEAN BANKING SECTOR : C OMPARATIVE PERSPECTIVE AND LESSONS LEARNT B RUSSELS, N ATIONAL S EMINAR EUROSOFIN, 11 F EBRUARY 2015 D R V ASSIL K IROV, P ATRICK T HILL LISER, L UXEMBOURG

2. 2 S TRUCTURE OF THE PRESENTATION Objective of the presentation Methodology of the research The drivers and processes of restructuring Sectoral social dialogue and restructuring Enterprise level dialogue and restructuring Conclusions and policy implications INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

3. 3 1. O BJECTIVE The focus of our paper resides in the better understanding of social dialogue in the banking sector in Europe in terms of anticipation and management of restructuring INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

4. 4 2. M ETHODOLOGY AND DATA Qualitative based methodology Desk-research – relevant reports, documents of social partners, collective labour agreements, press; In-depth interviews based on a common guideline, transcribed and analysed - sectoral unions, sectoral employers, enterprise level unions, HR managers, experts – in five EU countries; Discussions of the preliminary results with the stakeholders at national seminars held in 2014. INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

5. 5 R ESTRUCTURING – DEFINITION AND CONTEXT Modification of the company workforce, both quantitative (number of jobs) and qualitative (skills, qualifications), following changes in company structure, organization or production processes (European Commission, 2008). Not a new phenomenon, but there is evidence that its scope and speed have increased in the European Union since the beginning of the financial and economic crisis started in 2008 – 2009 Different policies and measures in the European Union members – in order to mitigate the negative consequences for employees, economies and territories, often as a result of social dialogue. INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

6. 6 T HE COMPARATIVE EXERCISE – LIMITS AND APPROACH Difficulties to compare practices embedded in the history and institutions Larger or narrower focus? Importance of the elements Different path dependency and role of institutions INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

7. 7 3. T HE IMPORTANCE OF THE BANKING SECTOR IN E UROPE INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT Long term national history – change of ownership, concentration, internationalisation, single market... Major employer and contributor to the GDP in Europe but experiencing difficulties… Changing employment models and skills…

8. 8 F ACTS AND FIGURES FOR THE COUNTRIES EXAMINED Processes/DriversAustriaFranceRomaniaLuxembourgUK Concentration 809 (40% decreased, compared to the 1980s) 390 banks in 2013 (1556 banks in 1984) 40 banks in 2013 (40 in 2004) 149 in 2014 332 in 2010 (595 in 1986) Changes Privatization in the 1980s and 1990s Permanent change Privatization in the 1990s Rapid internationalisation during the 1980s and 1990s The October 27 1986 ‘Big Bang’: a massive deregulation of financial markets, rapid growth of the financial sector since then Processes relatedDomestic employment relatively stable and employment in the subsidiaries in decline after period of strong growth Relatively stable employment, Retiring population in France – a buffer to jobs preservation Significant employment decrease since 2008 - 2009 Job losses in the banking sector partially compensated by the development of the professionals of the financial services (PSF) and the fund industry Significant job losses since the crisis INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

9. 9 4. T HE RESTRUCTURING DRIVERS Effects of the crisis The (new) regulations New technologies and expectations of the clients Outsourcing INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT Mitsubishi UFJ Financial Group Inc. will trial the device in two branches in Tokyo.

10. 10 I MPACT IN THE COUNTRIES EXAMINED Processes/DriversAustriaFranceRomaniaLuxembourgUK Effects of the Crisis ++ (decrease of activity, risk of the operations in CEEC, state support) + (minor impacts) ++ (decrease of the activity) ++some impact of the crisis (e.g. public support+++) +++ serious job losses New regulations++ impact on compliance ++ Impacts on current and future restructuring + impacts++ (especially the automatic exchange and the abolition of the banking secrecy) +++ New technologies ++++++ ()++ (Romania is benefiting from in-sourcing) + (yes, but still a smooth change) ++ Outsourcing - insourcing +++ (strong impact on non- core and core activities) + (some outsourcing is taking place) +++ (strong impact, but no concrete estimations) ++ INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

11. 11 S OCIAL DIALOGUE AND IR IN THE SECTOR Country models of employment relations INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT Sectoral Collective Bargaining and Social Dialogue Enterpprise SDEnterpprise SD + - +- France Austria Luxembourg United Kingdom Romania

12. 12 IR DATA FOR THE SECTOR AustriaFranceRomaniaLuxembourgUK Trade unions GPA-DJP, union of white-collars Several unions present, CFDT, CFE CGC, CGT, CGT FO, CFTC FSAB (Cartel-Alfa) ALEBA LCGB OGB-L Unite the Union Trade union density About 25%, lower than the average 9%, higher than the average About 15% of the employees working in the insurance and banking industry 38 – 39% trade union density of ALEBA, no data about the two other unions 30,5% (2006) Employers’ organisations Five different employer organizations L’Association Française des Banques (AFB) (Commercial banks) and the Fédération Bancaire Française (FBF - the whole banking sector) Council of the Banking Employers in Romania (CPBR), since April 2014 ABBLNo INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

13. 13 IR DATA FOR THE SECTOR - 2 AustriaFranceRomaniaLuxembourg UK Sectoral level dialogue Yes, 5 sub- branch agreements are negotiated Yes No, except skills - institutionalized dialogue in the field of professional training Yesno Company level dialogue Yes, in most banks Yes, in major banks Collective bargaining coverage Almost 100%98,7 % of the employees covered (estimation 2007) 40% of the employees are covered by CLA 100%, extension of the sectoral collective agreement 38,1% INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

14. 14 A NTICIPATION AND MANAGEMENT OF RESTRUCTURING : PHASES Anticipation Management Addressing the consequences INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT Sectoral level Company Level

15. 15 S ELECTED MEASURES / PRACTICES TO ADDRESS RESTRUCTURING Measures/practicesAustriaFranceLuxembourgRomaniaUK Anticipation/sectoral level No Observatory of the professions; CLA for the commercial bank sector IFBL analysis on future skills No No Anticipation/company level No GPEC agreements The case of the large French bank – BNP - Paribas Some company plans that envisage downsize – however the speed of restructuring is high (BRD) No Support to transitions New development – e.g. work foundations; Early retirement schems +++Some internal measures in the big groups (e.g. BNP- Paribas), projects such as Fit for Finance Rare, e.g. in the case of BCR Erste Selection pools in LGB INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

16. 16 P OLICY IMPLICATIONS Reinforcement of anticipation at sectoral and company level – necessary but not always easy; Management of restructuring – importance of the internal mobility and internal labour markets, adaptation of jobs and skills, agreements to support transitions, role of the collective bargaining at both levels, international coordination… Addressing consequences – supporting transitions, reintegrating dismissed back to the labour market – issues of responsibilities and roles of stakeholders INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT

17. 17 Thanks for your attention For more information: patrick.Thill@ceps.lu vassil.kirov@gmail.com http:///eurosofin.ceps.lu INTERNATIONAL CONFERENCE 2015 S OCIAL DIALOGUE IN THE FINANCIAL SECTOR IN E UROPE : C ONTRIBUTION TO ANTICIPATION AND RESTRUCTURING EUROSOFIN PROJECT