Bank employees: ASIB accepts UBS regulations

Context

In brief

• ASIB fully supports CET-S proposal to regulate UBS
• Calls for mandatory social plans for systemically important institutions
• Unemployment in the banking sector has reached the levels of the 2010 crisis
• Raiffeisen and Swiss Life announce significant redundancies

Key Facts

• What: Federal regulation for the regulation of UBS as a systemic bank
• Who: Swiss Association of Bank Employees (ASIB) and Commission for Economic Affairs and Taxation of the States (CET-S)
• Where: Switzerland, federal parliamentary debate
• When: Proposal in the parliamentary deliberation phase
• Main requirements: Mandatory social plans, binding inclusion of employee interests, additional UBS capital
• Employment environment: Unemployment at 2010 level, Raiffeisen and Swiss Life redundancies, relocation of Vontobel headquarters

The Swiss Association of Bank Employees (ASIB) has expressed its full support for the proposal of the Commission for Economic Affairs and Taxation of the States (CET-S) for the regulation of UBS as a systemically important bank. In a recently issued statement, the union particularly welcomes the binding inclusion of employees' interests in the future regulation of the sector, a victory strongly advocated by the trade union movement.

ASIB's claims

The union has made a clear demand: the introduction of mandatory social plans for systemically important institutions. According to the ASIB, this measure is crucial at a time when the banking sector is going through an extremely difficult economic situation. The unemployment rate in the sector has already reached the critical levels recorded during the global financial crisis of 2010. In addition, the ASIB draws attention to the recently announced waves of redundancies by Raiffeisen and Swiss Life, as well as the relocation of the Vontobel headquarters. According to the union, these developments show that bank workers are under increasing and unprecedented pressure in the sector.

The balance of the regulatory proposal

The CET-S proposal on additional capital requirements for UBS was welcomed by the ASIB. The union acknowledges that the compromise worked out by the committee adequately balances the need for stability of the Swiss financial hub with the need to preserve the employment levels of bank staff. Natalia Ferrara, vice-president of the ASIB, said in the statement: "The committee's proposal ensures a strong and stable Swiss financial centre and, at the same time, the jobs of bank staff." Parliament was urged to continue with determination along the path outlined by the CET-S and to give its final support to the overall regulatory package.

Operational details

Context of crisis in the banking sector

The ASIB's support for the CET-S regulation emerges from an analysis of a very serious employment situation in the Swiss financial sector. When the unemployment rate reaches the levels of the 2010 crisis, it means that the bank labor market is under significant structural stresses. The waves of redundancies announced by Raiffeisen and Swiss Life, together with the relocation of the Vontobel headquarters, signal that the large credit institutions are undergoing deep restructuring. In this scenario, the mandatory social plans proposed by the ASIB are not an ancillary demand, but an essential protection for workers who risk losing their jobs. The CET-S proposal recognizes this urgency and codifies it in regulatory form.

The Importance of Employee Inclusion

One of the innovative aspects of the CET-S proposal, highlighted by the ASIB, is the binding inclusion of employees' interests in the future regulatory framework of the sector. Traditionally, the regulation of systemic banks has focused on financial stability, capital adequacy and risk management. Binding inclusion of workers' rights and interests represents a paradigm shift: it recognises that the soundness of a credit institution does not only depend on the strength of the balance sheet, but also on the responsible management of human capital and the maintenance of sustainable employment levels. The ASIB argues that this broader perspective protects both employees and the entire financial system.

The search for a balance between stability and employment

The CET-S proposal attempts to strike a delicate balance between two seemingly conflicting needs: maintaining the strength of the Swiss financial hub through additional capital requirements and preserving jobs in systemic banks. The ASIB welcomes this trade-off, believing that the additional capital requirements for UBS do not compromise the institution's ability to maintain current employment levels. To monitor how a restructuring could impact your salary, puoi consultare lo strumento della busta paga svizzera. The underlying rationale is that a well-capitalised and stable bank is a bank that can provide secure employment in the long term, while a bank in financial difficulty poses a direct risk to employees.

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Key points

The legislative path and the next steps

The CET-S proposal is currently being discussed in the Swiss Federal Parliament. The role of the committee was crucial: it worked out a compromise that combines the regulatory needs of systemic banks with the employment protection bodies. It is now up to the federal chambers (National Chamber and Council of States) to decide on the overall regulatory package. The ASIB has explicitly urged Parliament to continue with determination along the path outlined by the CET-S and to support the measure definitively. This means that the political battle for the passage of the law is still ongoing and requires the support of political forces that recognise the importance of employment protection.

Who is affected by the legislation

The legislation directly affects employees of systemically important banks, with a particular focus on UBS. However, the implications extend to a wider circle: employees of other significant credit institutions, the Swiss financial system as a whole, and indirectly the banks' clients and stakeholders. The requirement for social plans for systemic banks sets an important precedent: it states that when a strategically important financial institution experiences employment difficulties, the federal state can demand that protective measures be taken for workers. If you are a bank worker concerned about employment, you can consultare gli annunci di lavoro to explore possible alternative opportunities in the Swiss labor market. This raises the standard of social responsibility for the Swiss banking sector.

How to stay up to date and what actions to take

If you work in the Swiss banking sector, it is important to monitor parliamentary developments in this legislation. You can follow the work of the committee and parliamentary sessions via the Federal Parliament website (parlament.ch). If you are a bank worker concerned about employment, you can consult your collective agreement to check which employment protections are already in place, contact your relevant trade union (e.g. ASIB) for specific information on restructuring protections, and check your skills and continuing education opportunities to increase your resilience in the labour market. To calculate how any salary reductions or job losses could impact your future income and retirement planning, you can consult il calcolatore stipendio available on our website. This tool helps you simulate different income scenarios and plan accordingly.

Source: swissinfo.ch