In addition, they believe that it will mean the closure of between 589 and 883 offices throughout Spain, compared to the 300 that BBVA announced this week.
Aug. 2 () –
CCOO and UGT estimate a loss of between 7,684 and 10,567 jobs due to the takeover bid and subsequent merger between BBVA and Sabadell, as well as the closure of between 589 and 883 offices in Spain, with a “particular” impact in Catalonia, the Valencian Community, Asturias and Galicia.
These figures were released today by the unions in a letter sent to the president of the National Commission of Markets and Competition (CNMC), Cani Fernández, in which they express their “deep concern” about the operation that BBVA has proposed for Banco Sabadell. The letter was signed by the general secretaries of UGT, Pepe Álvarez, and CCOO, Unai Sordo.
“This merger would result in the destruction of a large number of jobs in both companies” and in other sectors, they warn in the letter, given the possible reduction in the ability of companies and self-employed workers to access credit.
In fact, they have also carried out an analysis of what a merger between BBVA and Sabadell would imply for the lending activity. The unions point out that it would mean an 8% reduction in the availability of credit, which would translate into a decrease of more than 54 billion euros in loans, a reduction that would particularly affect SMEs, self-employed workers and working families.
“SMEs and self-employed workers, who depend on credit as a ‘oxygen’ for their operations, would face an increase in business costs due to the lower supply of financing,” they added.
CCOO and UGT also warn that the merger would increase banking concentration in Spain, placing it above the European average.
In this regard, they maintain that the two main banks, CaixaBank and the entity resulting from the operation between BBVA and Sabadell, would control 73.7% of the bank branches, “reducing competition in the market and negatively affecting consumers with worse prices and financial services, lower deposit remuneration and an increase in commissions.”
Added to this is a possible increase in financial exclusion, mainly among older people and people living in rural areas.
“CCOO and UGT wish to express their concern about the impact of this merger on employment, which, in addition to a more than likely loss of direct jobs in banking, and another resulting from the contraction of access to financial products by our companies and self-employed workers, will also increase job insecurity in the banking sector. In addition, the closure of branches would affect employees of all ages, exacerbating inequality in access to banking services, especially in less developed regions,” the organizations maintain.
Given the “seriousness of the situation”, Álvarez and Sordo are asking the CNMC to take the “necessary” steps, including the “denial of the requested merger”, to maintain employment levels and to provide more detailed and transparent information to mitigate these negative effects by ensuring effective competition in the banking market.
300 MILLION IN STAFF SAVINGS AND CLOSURE OF 300 OFFICES
It is worth noting that this week, during the presentation of BBVA’s results, the bank gave more details about the proposed operation. Specifically, it specified that the savings in personnel would be 300 million euros three years after the merger.
Asked at a press conference about the specific number that the staff reduction would entail, BBVA CEO Onur Genç refused to give a figure, explaining that it would be a process that would be discussed, precisely, with the unions.
He also argued that since both entities – BBVA and Sabadell – have recently undergone two restructurings that have involved staff dismissals and branch closures, the expected cuts are smaller than in other similar processes, such as CaixBank’s after integrating Bankia.
On the other hand, BBVA has identified that, as a result of the operation with Sabadell, there will be some 870 branches located within 500 metres of each other. Of this number, the bank currently plans to close some 300.
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