50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

BNP's Italian bank, unions spar over strike take-up

Published 12/27/2021, 11:53 AM
Updated 12/28/2021, 12:00 PM
© Reuters. FILE PHOTO: The logo of  BNL (Bnp group Paribas) bank is seen in Naples, Italy February 22, 2016. Reuters/Tony Gentile
BNPQY
-

MILAN (Reuters) -Italian banking unions on Tuesday challenged the figure provided by BNL, the Italian arm of French banking group BNP Paribas (OTC:BNPQY), over the take up of the previous day's strike in a rare show of open confrontation in the sector.

BNL on Monday said 29.8% of its workers had joined the strike - the first such protest since the 1990s.

The bank said it had ensured it could continue to operate thanks to its digital capabilities at time when workers were also absent due to year-end holidays.

Unions on Tuesday said BNL should clarify how it had calculated the number given than 80% of branches had remained shut.

"Embracing the clear challenge launched by the company unions will strive to render even louder workers' cries of protest," Fabi, First-Cisl, Fisac-Cgil, Uilca and Unisin said in a joint statement.

Such a degree of confrontation is unusual in Italy's banking sector, where workers are only laid off through early retirement schemes offered to older employees on a voluntary basis and very costly for lenders to fund.

Under such schemes, workers receive up to 80-90% of the salary from a fund financed by the banks laying off staff until they actually qualify for pension.

Employees' requests to join the scheme normally exceed the number of departures planned by banks.

The animosity highlights the difficult phase the industry is enduring with negative rates making lending unprofitable, while it faces a digital challenge from non-banking players which are not subject to the same tight regulation and oversight.

© Reuters. FILE PHOTO: The logo of  BNL (Bnp group Paribas) bank is seen in Naples, Italy February 22, 2016. Reuters/Tony Gentile

Workers at BNL protested against its decision to use external providers for IT and back office services, a move that unions said affects 900 out of a total of 11,500 BNL employees in its central offices and around 700 branches across Italy.

Unions have also voiced grievances about BNL's sale to Worldline in July of an 80% stake in its card payment processing business Axepta Italy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.