Luxembourg trade unions respond to Deutsche Bank/Dresdner Bank merger

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The forthcoming merger between Deutsche Bank and Dresdner Bank prompted fierce responses from Luxembourg trade unions in early 2000. They have called for meetings with representatives of the banks' local management.

The merger between the German-based banking groups, Deutsche Bank and the Dresdner Bank, both of which employ around 250 people in Luxembourg, has prompted fierce responses from Luxembourg trade unions. The merger is due to take place on 1 July 2000

The Federation of White-collar Staff in Banking and Insurance (Fédération des employés de banques et d'assurances,, LCGB-Feba), affiliated to the Luxembourg Confederation of Christian Trade Unions (Lëtzebuerger Chrëschtleche Gewerkschafts-Bond, LCGB), has announced its solidarity with the employees and the German trade unions concerned; the latter are talking of job losses of the order of 16,000.

This merger, decided beyond Luxembourg finance circles, demonstrate the high degree of vulnerability of financial institutions based in the country. LCGB-Feba questions the meaning and role of such "super-mergers", and wonders whether there might now be an urgent need to start working politically within the European Union in order to outlaw strategies that effectively concentrate in one pair of hands more financial and economic power than the budget of a sovereign state the size of Germany.

The banking and insurance union of the Luxembourg Confederation of Independent Trade Unions (Onofhängege Gewerkschafts-Bond Lëtzebuerg, OGB-L) has called for meetings with the two banks' local managements in order to obtain clarification on any repercussions the merger might have for Luxembourg. This union has also announced that it is collaborating closely with the German Commerce, Banking and Insurance Union (Gewerkschaft Handel, Banken und Versicherungen, HBV) with a view to coordinating action.

The Luxembourg Association of Bank Staffs (Association luxembourgeoise des employés de banque, ALEBA ) has organised working meetings with the employee committees/works councils (délégations du personnel) at the two banks, but says that it is too early to say whether there are likely to be negative repercussions at national level. In addition, ALEBA has announced that it will be contacting the companies' European Works Councils, German trade unions and the Luxembourg company joint committees (comités mixtes d'entreprise) of the two banks concerned, and will be asking for meetings with the management of both firms.