HSBC Bank Malta has submitted new proposals, which it described as “concrete”, after an industrial action disrupted operations for over a week.
The action escalated to a strike, which was suspended following mediation by the Office of the Prime Minister.
A bank spokesman said that the proposals were aimed at “finding a balanced and reasonable solution in the best interests of our customers, employees and shareholders” and that they “reflect the current challenging market conditions”.
The bank’s last collective agreement covered a three-year period and expired in 2013.
Although discussions started in October 2013, no real progress was made and the Malta Union of Bank Employees’ counter-proposals at the end of March were the first for six months.
One of the sticking points is that the bank only wants a one-year agreement, with sources familiar with the sector explaining that banks want flexibility because the scenario was changing constantly as a result of regulatory and supervisory pressure, as well as the challenging performance environment which was affecting profits.
Although the collective agreement had expired, the bank agreed on a 4.5 per cent increase (including the Cost of Living Allowance) in 2013-2015 – and bonuses were also paid, as they are outside the scope of the collective agreement.
Some staff remain demotivated, amid what the union says are ‘genuine claims of work overload’
“For HSBC Bank Malta, 2013 and 2014 are closed chapters. Anything negotiated with the unions would be for 2015 onwards,” the sources warned.
Another bone of contention for staff is the amount of subsidy on home loans, with the applicable interest rate reduced from 1.75 per cent to one per cent by the bank.
The dispute over the collective agreement seems to be the tip of the iceberg as far as employee discontent is concerned.
Although staff returned to work after the suspension of the strike on April 8, some salaried staff remain demotivated, amid what the MUBE says are “genuine claims of work overload”.
The staff sources said that the bank’s aggressive stance – such as threatening to lock out employees who were on sit-in in the early phases of the industrial action – had shocked employees.
They are also upset at a number of expatriate appointments.
The sources said that staff were also concerned by what they saw as an implied threat from CEO Mark Watkinson’s staff communication, wherein he said that industrial action affected the bank’s long-term business in Malta.
However, the HSBC Bank Malta spokesman said: “As a key player in the local economy with a worldwide reach, our goal is to build a long-term sustainable business in Malta focused on customer excellence and on bringing global best practice to the market.”
He added: “The bank acknowledges that the last few weeks have been very challenging and thanks all those who have worked so hard for our business and customers over this period”.