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Tue. Jul 23rd, 2024

Job losses threaten at ING, union warns

By Vaseline May30,2024
Job losses threaten at ING, union warns

According to trade union Aleba, the jobs of around 150 people could be at risk after ING Luxembourg announced the closure of its retail banking activities.

ING confirmed on Thursday that it is closing its large-scale retail operations in Luxembourg after days of speculation and a flood of messages from disgruntled customers on social media who received notices that their accounts were being closed.

“The next period will cause some job losses,” Aleba told the newspaper Luxembourg times, saying it employs around 150 people directly in its retail banking division. Another 300 are indirectly linked to that division, the union said.

We’ll probably have to wait six to 12 months to see the real impact of mass retail account closures on workers

Aleba

Some employees who work directly in the retail division “know that there will be no more jobs for them once the administrative side is completed,” Aleba said Thursday, but does not expect there to be any immediate job cuts.

“We will likely have to wait six to 12 months to see the real impact of the closure of major retail accounts on workers,” the union said.

The bank did not respond to repeated requests for comment on possible job cuts or whether it plans to close branches in Luxembourg or otherwise limit customer service.

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The Gare branch already announced to customers that from June the cash register would only be open from 9 a.m. to 1 p.m. instead of 5 p.m.

ING said on Wednesday that it will help customers switch to another bank and transfer their money in the coming months. The bank will increase the number of people available in its branches to assist people with this process.

The lack of communication at a bank can certainly lead to sanctions

CSSF

While the bank has the right to close accounts, it “is also obliged to act honestly and professionally in the best interests of the customer,” financial sector regulator CSSF said in a statement. “This particularly includes cases where there are no specific reasons for immediate termination.”

The bank must allow customers a reasonable period to move their accounts, taking into account personal circumstances, the CSSF said. “A bank’s lack of communication can certainly be a reason for sanctions,” the CSSF said.

Aleba predicts a social plan

ING has indicated that it wants to retain customers with a mortgage, other loan or an investment portfolio.

The bank does not want to say how many accounts it is closing and whether more customers can expect a cancellation letter in the coming weeks and months.

ING will certainly not be able to rehire everyone working in the retail banking division once the shutdown is complete, Aleba said. “It will therefore be necessary to think about a social plan or other solutions to support these employees after a certain period.”

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