Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Italian cooperative banks Banco Popolare (BP) and Banca Popolare di Milano (BPM) announced 2,500 redundancies to be implemented between 2016 and 2019.
The banks agreed a merging plan, which should be approved by their assemblies in October 2016.
The deal is expected to bring financial stability and overall profitability, while creating Italy’s third-largest bank by assets.
The overall strategy includes the shrinking of the number of local branches (down from 2,467 to 2,082), the disposal of at least €8 billion non-performing loans by means of a dedicated business unit, the deployment of multi-channel banking and the differentiation of products and services with a view to targeting more effectively both business and retail clients.
As for the employment impact, the plan envisages 1,800 job cuts to be implemented on a voluntary basis, and measures of internal relocation for 800 workers.
There is so far no information on which branches should be closed or the distribution of redundancies between the two banks.
Overall unions have not opposed the plan, insofar exits should occur by means of early retirements of incentivised dismissals. Yet, unions demand a reduction of the employment impact by hiring young workers.
Update, 23 December 2016: Negotiations have been finalised. An overall number of 2,100 exits have been agreed over the last months. The job cuts will be implemented by means of early retirements. The new group will also hire 400 people on permanent contracts. Yet, the hiring will primarily target temporary employees at the two affected banks.
The final agreement does not envisage a target number of relocations. Where those will be necessary, the company underwrote to grant priority to voluntary transfers and seek for short-distance transfers.
Eurofound (2016), Banco Popolare - Banca Popolare di Milano, Merger/Acquisition in Italy, factsheet number 87506, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/87506.
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