After the rescue of the Swiss banking giant, the Swiss Trade Union Union demands that jobs be preserved and that effective preventive measures be taken by the authorities
The Swiss financial center, and the world, trembled. On the verge of bankruptcy, Credit Suisse was bought out urgently on Sunday March 19 by UBS, for the sum of 3 billion francs. Gathered at the top, federal advisers and bankers opted for this rescue operation in order to avoid “irreparable economic damage” to the entire financial system. By way of insurance, the government offers UBS a guarantee of 9 billion francs. In addition, the Central Bank will release up to 100 billion Swiss francs of liquidity to the two banking entities.
For the Swiss Trade Union Union (USS), the fall of Credit Suisse is due to the serious failings of its leaders and the collective failure of the regulations. During a press conference held in Bern on March 21, the union umbrella presented its analysis of the situation. “The search for short-term returns, risk-taking and wage bonus systems encouraging such an attitude were toxic,” said Daniel Lampart, chief economist and first secretary of the USS. “To this is added that the management team of Credit Suisse lacked banking experience and little control of the risks and had moreover neglected to build up reserves of liquidity and capital to be able to face difficult times. , taking into account the risks taken.
Save workplaces
The main demand of the Swiss Association of Bank Employees (ASEB), supported by the USS, is clear: the maintenance of workplaces. In Switzerland, the bank employs some 17,000 people, including around 10,000 in the Zurich region. “Credit Suisse employees should not pay for the mistakes made by managers and authorities,” insists the trade unionist. Both banks, Credit Suisse and UBS, have a duty to avoid drastic job cuts.”
ASEB President Michael von Felten talks regarding “the biggest storm in the Swiss banking sector since the financial crisis” and the future of many people that is at stake. be restored. In a bank, trust rests with its employees, and I am appalled to see that, so far, managers and politicians have not said a word regarding jobs.
If layoffs are to take place, however, USS and ASEB demand that the employees concerned receive support in finding a new job as quickly as possible, training or retraining. In addition, they demand that, in the upcoming merger between UBS and Credit Suisse, the transferred employment contracts be accompanied by protection once morest dismissal, in particular for employees over 55 years of age. “In any case, no dismissal should take place before the full integration of the two entities”, demand the ASEB and the USS. Finally, as a last resort only, employee representatives demand that a good social plan be put in place. A working group should be set up to work on these various proposals.
Better to prevent
The collapse of the second largest international bank in the country, fifteen years following the rescue of UBS, questions the unions regarding the measures taken at the time. “The officials at the Confederation and the National Bank threw powder in the eyes of the population. They claimed to have reduced the problems of “systemically important” banks in such a way that there would be no new UBS case obliging the Confederation to grant a guarantee to reduce the risk of bank losses, explains Daniel Lampart. But complicated liquidation plans proved useless in a crisis. The losers are the people and the employees of Credit Suisse.”
The USS calls for finally taking effective preventive measures to prevent such events from happening once more. “Authorities must ensure that banks have sufficient reserves of cash and capital to be able to bear the losses themselves in all cases,” insists the economist.
“They must also impose restrictions on the risks that banks can take. Wage premium and bonus systems that encourage risk-taking must now disappear. And only people with the right qualifications should be able to run a bank.” Prevention, rather than cure, is what the USS calls for.
Finally, the latter considers that an in-depth analysis of the events must be carried out. “It will be necessary to examine to what extent the Federal Department of Finance, the National Bank and FINMA (Federal Financial Market Supervisory Authority, editor’s note) have assumed their missions or failed in their duties, raises the union official. It will also be necessary to shed full light on their links with the financial centre.
Accountable
Following this new state bailout with billions, the USS confronts the government with its responsibilities. Nine billion francs, that represents 1000 francs per inhabitant. “In front of the population, Federal Councilor Karin Keller-Sutter will have to explain why, on the one hand, we support UBS and Credit Suisse, while on the other hand we want to save on AVS pensions, that the Confederation lower the pensions of the 2e pillar and that health insurance premiums continue to take the elevator, ”says Daniel Lampart. And to remember that the big banks have profited handsomely from the tax cuts granted to companies in most cantons in recent years. “That must change. Switzerland must develop a purchasing power policy and a tax policy that are focused on the people who work and keep the country running.”
