Disguise of collective dissmissals

Luxemburg, August 8,  2024 - In an already fragile economic context, the Unions namely ALEBA, LCGB, and OGBL, together denounce a seemingly new practice in certain financial companies, namely JP Morgan SE-Luxembourg Branch but also others in the same sector, of hiding collective dismissals behind a series of less important dismissals. These methods raise ethical and social responsibility issues.

The methods used by these Institutions are not only aimed at reducing costs primarily through outsourcing, but also reveal a blatant disregard for employees whom, for years, have contributed to the success of these same Institutions. By offering meagre compensation, these banks are attempting to avoid the consequences of a social plan that would cost them more in terms of reputation and responsibility.

A lack of respect and consideration towards employees

It is deeply disturbing to see that these Companies prioritize short-term savings over human dignity. Dismissal shall never be a decision taken lightly. Employees, often in the service of the company for many years, deserve respectful and fair treatment. Offering a paltry sum as compensation is not only unfair, but it also demonstrates a lack of recognition for their work and dedication.

Call for a reassessment of practices

Therefore, the LCGB, the ALEBA and the OGBL together call on these banks and Institutions to reconsider their dissmissal strategies and to adopt more humane practices. Dissmissal shall be the last resort, and when unavoidable, it shall be managed in a way that minimizes the social and financial impacts on the affected employees.

The ALEBA, LCGB, and OGBL also call for more transparency in dissmissal’s decision-making as well as a commitment to ensuring fair and equitable working conditions for all employees. Banks and financial institutions must demonstrate social responsibility and implement measures to support their employees, even in challenging times.

The unions emphasize the crucial importance of social dialogue to ensure a respectful and collaborative working environment where employees’ concerns can be heard and taken into account.