Updated 10.30am
HSBC Malta workers will be getting a total of €30 million in compensation once its takeover by CrediaBank is completed, bringing an end to an industrial dispute that first emerged in early autumn.
The deal was announced in two separate market statements issued by the respective banks on Tuesday morning. The statements also noted that CrediaBank has now entered into a “definitive” deal to take over HSBC Malta from its parent company, HSBC Continental Europe.
HSBC Malta will be paying out €10 million in compensation to bank workers, with the other €20 million financed by its parent firm.
HSBC and CrediaBank have now entered into a cooperation agreement for the €200 million acquisition, which remains subject to corporate and regulatory approval. Once completed, it will see the Greece-based bank assume a commanding 70 per cent of the Maltese bank.
The €30 million deal with bank employees’ union MUBE will see qualifying employees receive ex gratia payments as compensation for the takeover. No further details about the payments was immediately available.
MUBE had called a sit-in strike earlier this year, saying a clause in workers’ collective agreement meant employees were owed terminal benefits once the bank changes hands.
At the time, the union was understood to be seeking just short of €60 million in total compensation payments.
HSBC argued that the union’s request had no legal basis as the bank was changing hands, not closing down, and CrediaBank had guaranteed staff jobs for the next two years.
According to sources, HSBC did not rule out awarding employees some form of compensation, but the bank’s initial offers fell far short of the union’s demands.
At the time, CrediaBank chief executive Eleni Vrettou told Times of Malta that the Greek bank would be willing to mediate between the two sides in an effort to resolve the stand-off as smoothly as possible.
The strike was repeatedly suspended and reinstated, until a preliminary agreement was reached in October, with an end to the dispute appearing imminent.
However, talks dragged on for several weeks, with the bank and union finding themselves at loggerheads over whether employees should be taxed for the payout they receive.
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HSBC Malta’s statement on Tuesday noted that the bank will be paying €10 million into the compensation fund. A separate statement issued by CrediaBank noted that workers would be getting a total of €30 million in compensation, with that money paid by HSBC Malta and its parent company, HSBC Continental Europe.
According to sources, the final agreement was put to the vote among bank staff late last week, with approximately 87% of workers voting in favour.
The agreement was later signed at HSBC’s Qormi headquarters, paving the way for the bank’s 900-plus workers to become CrediaBank employees once the takeover is completed.
In a separate statement on Tuesday, CrediaBank said it was in talks to acquire a majority stake in Greek brokerage firm Pantelakis Securities, which until 2012 formed part of the HSBC group.