On 21 December 2006, the management of Italy’s Banca Intesa and Sanpaolo IMI met with the worker representatives of both companies. The two banks informed the trade unions of their merger and its consequences in legal, economic and corporate terms, together with the measures that were planned. The merger was formalised on 1 January 2007.
On 26 August 2006, two major Italian banking groups, Banca Intesa and Sanpaolo IMI, revealed plans to merge the companies (IT0609029I). The new bank would become Italy’s largest bank and the seventh largest in Europe, with 13 million clients, about 6,200 bank branches and 100,000 employees. During the months that followed, the two banks defined the merger in all its aspects, while the trade unions requested job guarantees.
Potential problems
The merger will have an effect on employment and on the logistical structure of the new company. Moreover, the creation of such a large banking group will cause problems in respect of competition. In fact, the Italian Antitrust Authority has required the new bank to give up approximately 200 branches. Meanwhile, the trade union representatives have indicated their concerns regarding any possible effects on employment that the new set-up may have.
Other difficulties may arise in relation to harmonising the workers’ situations, as Sanpaolo employees currently benefit from a better financial package than Banca Intesa employees do.
First agreement of new group
On 21 December 2006, a ‘technical’ agreement was signed by the management of the two companies and the various relevant trade union organisations, comprising: the National Trade Union Association for credit, financial and banking management staff (Associazione Sindacale Nazionale dell’Area Direttiva e delle Alte professionalità del Credito, della Finanza, delle attività similari e strumentali, delle Fondazioni bancarie e delle Authorities o Agenzie nazionali comunque denominate, Dircredito Fd); the Independent Federation of Italian Bank Workers (Federazione Autonoma Bancari Italiani, Fabi); the Independent Federation of Italian Credit and Savings Workers (Federazione Autonoma Lavoratori del Credito e del Risparmio Italiani, Falcri); the Italian Banking and Insurance Federation (Federazione Italiana Bancari e Assicuratavi, Fiba), affiliated to the Italian Confederation of Workers’ Trade Unions (Confederazione Italiana Sindacati Lavoratori, Cisl); the Italian Federation of Insurance and Credit Workers’ Unions (Federazione Italiana Sindacale Lavoratori Assicurazione e Credito, Fisac), affiliated to the General Confederation of Italian Workers (Confederazione Generale Italiana del Lavoro, Cgil); the Union of Italian Credit, Collection and Insurance Workers (Uil Credito, Esattorie e Assicurazioni, Uilca), affiliated to the Union of Italian Workers (Unione Italiana del Lavoro, Uil); Silicea; the National Federation of Independent Trade Unions (Federazione Nazionale Sindacati Autonomi, Sinfub); and Ugl Credito, affiliated to the General Union of Workers (Unione Generale del Lavoro, Ugl).
This was the first meeting between the social partners and the new group. The agreement addresses two important issues: namely, job guarantees and contractual regulations for employees coming from Sanpaolo IMI.
With reference to provisions in the national labour agreement pertaining to information and consultation, the managers of the two companies explained the reasons for the merger and its consequences in legal, economic and corporate terms. In the agreement, the new Intesa Sanpaolo Spa bank commits itself to maintaining current employment levels.
Furthermore, as regards the harmonisation of the employment contracts of the two banks’ employees, the agreement establishes that, for the staff coming from Sanpaolo IMI, the salary provisions and standards currently in force will be applied until their natural expiration on 31 December 2007. After that date, a new agreement will be signed for all the workers of the new group.
The trade union organisations expressed their satisfaction with the agreement, despite the fact that they are still waiting for the newly established group to present its business plan.
Job mobility and restructuring
The parties met again in January 2007, following the formal date of the merger on 1 January, to work out the business plan and to begin harmonising the regulations governing employment in the two banks. At the meeting, the trade unions asked the management representatives to draw up a plan to deal with job mobility and the disposal of branches within a ‘framework of certainty and control’.
The parties will discuss the issues arising with regard to any excess personnel and the new organisational arrangements when Intesa Sanpaolo IMI presents the new business plan, expected between May and June 2007.
Vilma Rinolfi, Cesos