UBS wants to quickly address uncertainty about upcoming job cuts by improving the terms of its social plan, finews.com has learned. But there is no doubt that jobs will be lost in Switzerland.
UBS has decided to align the benefits of its social plan with that of Credit Suisse to treat all employees in the Swiss labor market equally when it comes to job cuts, according to internal documents of which finews.com has knowledge.
For Credit Suisse employees, the new offer is an improvement to the existing social plan, with the provisions valid up to managing directors in senior management coming into force with immediate effect. It applies to the entire Swiss labor market, including the Swiss business and employees of global divisions and foreign markets employed at headquarters.
No Home Market Precedent
Patrick Stolz, the head of UBS's human resources department in Switzerland, said the bank harmonized the benefits of the two existing social plans according to the «best of both worlds» principle, increasing them significantly in some cases. Before the adjustment, benefits under the UBS social plan were more generous overall than those at Credit Suisse, he said.
By introducing the changes rapidly, UBS is seeking to counter potential uncertainties arising in the ranks following the Credit Suisse takeover and plans to save around six billion francs ($6.7 billion) in personnel costs by 2027.
Stolz says the restructuring in Switzerland could lead to synergies, and the new social plan doesn't prejudge the options regarding the Credit Suisse business in Switzerland, which are currently still being evaluated. UBS plans to decide on the home market structure between mid-August and mid-September.
More Money for Training
For Credit Suisse employees younger than 50, one to five months will be added to the current seven-month reorientation period at full pay. Those over 54 or with ten or more years of service will now be given twelve months. Depending on the number of years of service, the duration of the social plan with continued payment of salary will run from eight and twelve months.
All employees aged 58 and over will receive a severance payment based on their function and remaining years of service, with extra generosity for lower salaries, according to the plan. The allowance for training and continuing education will be increased to a maximum of 12,000 Swiss francs per person from a previous range of 4,500 to 9,000 francs, depending on the social plan and age.
Continued Employment
All restructured employees will receive individual support from advisors and assistance in their job search internally and externally. UBS intends to place a strong focus on continued employment within the company during the integration and will set up an «Internal Mobility» team specifically for this purpose. There are still vacancies at both banks, Stolz notes.
The bank says it's important to ensure that any downsizing measures take equal account of age, workload, and gender.
As an employer, UBS can unilaterally adjust benefits when it makes increases, and it was further learned that benefit increases have been discussed with employee representatives of UBS and Credit Suisse and welcomed by the latter. External social partners including KV Switzerland and the Swiss Bank Employees Association (SBPV) repeatedly criticized the takeover.
