Following the abrupt but swift takeover of Credit Suisse by UBS earlier this week, one of the main concerns was employee redundancy following the merger. On Wednesday 22 March, the Luxembourg Bankers’ Association (ABBL), stated, “The management of both banks will first identify synergies and then decide on the future structure of the company and the necessary changes, a process that may take months or even years.”
Further clarifying the employment future of Credit Suisse employees in Luxembourg, a spokesperson for the ABBL confirmed to Delano that “the collective agreement for the banking sector provides a framework for the continuity of employment in the event of a merger and acquisition. More specifically, Article 6 on the termination of employment contracts states that existing contracts are automatically taken over by the new employer. Moreover, this article also aims to protect employees affected by the restructuring over a longer period, since during the first two years, no termination of contract may be due to reorganization or rationalization measures brought about by the merger.”
Taking a general outlook on the impact on the Luxembourg financial center and the future status of present Credit Suisse employees, the spokesperson underlined that “on the contrary, it is a tight market in which banks, like the private sector, are actively seeking talent.”
However, on a cautious note, the ABBL concluded that “as regards the consequences for employment in the case of the takeover of Credit Suisse by UBS, it is far too early to speculate.”
Credit Suisse has about 500 employees altogether in Luxembourg, but it declined Delano’s request to confirm the current number of employees in its subsidiaries in Luxembourg, namely Credit Suisse Luxembourg SA and Credit Suisse Fund Management (Luxembourg) SA.