Managing restructuring without redundancies in the Austrian banking sector: BAWAG PSK

BAWAG PSK is an Austrian banking group historically closely aligned with the trade union movement. The bank has faced numerous financial and political challenges in recent years, linked in a number of cases to unsound financial investments leading to significant exposure to failed or struggling US financial institutions. Having previously been owned by the Austrian trade unions and therefore carrying strong political and symbolic significance, this has arguably affected its approach towards restructuring. Workforce restructuring has taken place in a way that has avoided compulsory redundancies, but instead focused on retraining and early retirement measures.