Unions call a strike against MPS’s cuts plan

Unions at Italy’s third bank Monte dei Paschi di Siena (MPS) have called a strike following the presentation of the 2012-2015 business plan of the bank on June 27.

According to the plan, MPS will seek cost efficiency and it plans to cut 15% of its workforce and to close 400 branches.

MPS has 31,000 employees, which over the last months have opposed the new management team, headed by chairman Alessandro Profumo (pictured) and by chief executive Fabrizio Viola.

Measures have been announced as part of a broader restructuring plan needed by the bank to meet capital requirements set the European Banking Authority.

To meet the target, the bank said it will issue new securities worth up to €3.4bn, of which €1.9bn to replace so-called Tremonti bonds issued in 2009.

The five unions also complained on the bank’s decision to labour contracts clauses related to promotions and pay.

Under the plan approved on Wednesday, MPS will also strengthen its private banking business, for which it will recruit 1000 bankers.

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