Verdi Union opposes Unicredit’s Commerzbank takeover citing job loss concerns

The services union Verdi rejects a takeover of Commerzbank by its Italian competitor Unicredit despite promises to retain jobs and branches. “Our concerns as the Verdi trade union with regard to a possible merger of the two banks have not been allayed by your letter,” the “Handelsblatt” quoted from a letter from Verdi Chairman Frank Werneke to Unicredit CEO Andrea Orcel, according to an advance report on Thursday.

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The Verdi boss was responding to a letter from Orcel, which he had also sent almost word for word to German Chancellor Friedrich Merz (CDU) and Finance Minister Lars Klingbeil (SPD) in mid-June.

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The major Italian bank had acquired a large stake in Commerzbank; in mid-April, the Federal Cartel Office approved an increase in its shareholding to 29.9 percent. From 30 percent, Unicredit would be obliged to make a public takeover bid. Commerzbank's management and employees, as well as the German government, which has still held shares since the state rescue of the bank during the 2008 crisis, have spoken out against a takeover.

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Werneke now replied to Orcel's letter, according to "Handelsblatt", saying that he took note of the commitment to the branch network and jobs. “Such statements may sound reassuring on paper - but the reality of past mergers, in particular the takeover of Hypo-Vereinsbank by Unicredit in 2005, speaks a different language,” writes the Verdi boss. Since then, the number of jobs at HVB has fallen by around two thirds. He therefore fears that, in the event of a takeover, there would again be “thousands of job losses” at Commerzbank and HVB.

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“A merger of two well-positioned banks would above all result in lengthy integration processes and institutional self-employment,” warns Werneke. “Especially in economically challenging times - in Germany as well as in Europe - we need banks with a clear focus.” Verdi is therefore sticking to its position: "In the interests of the employees of both banks, we will continue to oppose a merger and support an independent Commerzbank."

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