Updated - Adds HSBC reaction below - The branches of HSBC were closed for two hours this morning because of industrial action ordered by the Malta Union of Bank Employees.
The union yesterday directed the employees not to serve customers before 10.30 a.m. in order to press the bank in talks on a new collective agreement. The employees were also ordered not to use any means of communications up to 10.30 a.m.
MUBE president William Portelli said it appeared that all bank branches were closed.
"We are very pleased with the response of the workers and look forward to concluding the talks on the collective agreement," he said.
He also indicated that the bank could be getting closer to the union's requests on the collective agreement.
Three main issues have proved to be the stumbling blocks, he said.
The first was that the bank had wanted a one-year agreement, while the union wanted three years.
The second was the bank's decision to limit the growth of its salaries fund to 2.5 per cent, which would mean workers on average would get an increase of between 1.5% and 1.7% (increases are based on performance).
Thirdly, the union wants more favourable home loan rates to the bank's employees. Mr Portelli said the rates offered by HSBC to its workers, at 1.75%, were the highest in the banking sector.
The industrial action is the first one affecting all of the bank's customers in some 14 years.
HSBC REACTION
A spokesman for HSBC Bank Malta said the bank was disappointed by the directive and ultimatum issued by Malta Union of Bank Employees (MUBE) late yesterday afternoon.
"The industrial action that took place today will unfortunately have negatively impacted our customers, our staff and the community that we serve. Following the termination of the industrial action at 10.30am, all banking services returned back to normal.
"After some four months of negotiations HSBC remains committed to positive and open discussions with MUBE and is seeking to work with the Director of Industrial and Employment Relations and the Malta Employers Association to ensure that this takes place."
The spokesman said the bank had put forward a pay and benefits package that was significantly above inflation and very competitive in the current market and economic environment.
"As evidenced by our on-going investment programme, HSBC is focused on building a strong and sustainable business in Malta. To do so however there needs to be a balance between the interest of all our key stakeholders – our staff, our customers, our shareholders and our community."
The bank apologised to clients for the inconvenience caused today and said it had done its utmost to minimise the impact on customers.