EMCC European Monitoring Centre on Change



Geographic Location

Country: Italy


Sector: Financial services
Financial and insurance activities
64 - Financial service activities, except insurance and pension funding
Number Employed: 65000
Group: Unicredit

Employment Effects

Announcement Date: 27-06-2008
Planned Job Reductions min: 5900
Planned Job Reductions max: 5900
Type of Restructuring: Merger/Acquisition
Employment Effect Start: 01-09-2008
Foreseen End Date: 01-09-2010

Additional Information

At the end of June 2008, the UniCredit group, one of the main bank operators in Europe, announced its 2008-2010 business plan. At European level, the plan provides for a relevant reduction of operating costs with the loss of 9,000 jobs by the end of 2010. Moreover, the plan envisages new investments in the ‘core’ business of the group – i.e. the retail banking – and a relevant increase of the group’s activities in the Eastern Europe. With regard to the Italian context, the plan envisages around 5,900 job-cuts, mainly due to the merger between Unicredit and Capitalia. The reorganisation plan arising from the merger provided the reorganisation and incorporation of Capitalia activities in Unicredit, with the loss of around 8,000 jobs. At the end of 2007, around 1,300 employees left the Unicredit group. Consequently, with the 2008-2010 business plan, the banking group aims at the conclusion of the integration process between the two financial service companies, providing for the loss of 5,900 jobs by the end of 2010. On 27 June 2008, the Unicredit group showed the details of the 2008-2010 business plan to the European Works Council (EWC), enforcing the Directive 2002/14/EC, that establishes a general framework for informing and consulting employees in the European Community. After this meeting, the group and the trade unions’ representatives have planned some meetings in each country in order to organise the implementation of the business plan. In Italy, the banking group and the trade unions have planned some meetings in September in order to find adequate measures to reduce the negative social effects of the lay-offs. In particular, it is likely that the parties will debate on the recourse to the ‘solidarity fund’. This fund was created in 1998 by the social partners of the banking sector and has introduced a sort of special Wages Guarantee Fund in the sector.
At the beginning of December 2008, the banking group and the trade unions reached an agreement on the redundancies envisaged in the 2008-2010 business plan. The agreement envisages the recourse to the early retirement measure for 3,700 employees (out of 5,900 redundant workers). These workers will reach all the requirements necessary to benefit by early retirement in the period 2009-2010 (respectively, 1,300 workers in 2009 and 2,400 in 2010). The other redundant workers could benefit by both the ‘solidarity fund’ for the Italian banking sector and economic incentives for voluntary resignations.

The UniCredit group is one of the largest bank operators in Europe. It has around 10,000 branches in Europe and around 180,000 employees worldwide. In Italy, the banking group has around 5,000 branches and around 65,000 employees.