Protests Over Postal Bank Closures Continue
The union Verdi is pressing on with their protests against Deutsche Bank's planned closure of nearly half of its Postbank branches. Personnel in Fürth (Nov. 21), Dortmund (Nov. 22), and Berlin (Nov. 28) are being rallied to take part, as Verdi announced on Monday. The union anticipates over a thousand employees in total.
Deutsche Bank, which owns Postbank, revealed at the end of October that it intended to close up to 250 of the 550 Postbank branches by mid-2026. Claudio de Sanctis, Head of Private Customers, stated that job cuts were inevitable. Discussions regarding the exact number of layoffs are ongoing with employee representatives.
Verdi is advocating for "measures to protect jobs" and an early extension of the collective agreement's job protection clause. Currently, compulsory redundancies at Postbank are prohibited until January 31, 2024.
The closure of Postbank branches has sparked concern among other financial institutions as well. Several prominent banks have vocalized their disapproval, asserting that the closures could weaken banking services in local communities.
Despite these objections, Deutsche Bank remains committed to their decision, citing financial reasons as the primary motivation for the branch closures.
Further Considerations
Deutsche Bank's plan to close up to 250 Postbank branches is part of a broader efficiency transformation, aiming to streamline its branch network and enhance cost efficiency. This strategy, however, has faced strong opposition from Verdi and other stakeholders.
Verdi, a German trade union, has been actively protesting Deutsche Bank's branch closure plans and is currently embroiled in a wage dispute with Deutsche Post, the parent company of Postbank. Verdi is demanding a 7% wage increase and additional vacation days for approximately 170,000 postal workers in Germany, resulting in warning strikes at select mail centers.
The closure of Postbank branches could lead to:
- Job losses, with an additional 1,300 full-time employees expected to be let go in 2024 alone (primarily in Germany).
- Cost savings for the bank, allowing them to boost profitability.
- Customer impact, as some may be affected by the lack of physical banking services. However, Deutsche Bank aims to improve the customer experience using its unified IT environment.
- Regulatory compliance, as the bank invests in necessary control and remediation measures to maintain compliance with regulations.
Even though the sources lack mention of opposition from other financial institutions, the broader financial restructuring landscape and focus on fiscal discipline in the European banking sector indicate that scrutiny and potential opposition could arise from regulatory bodies and other stakeholders concerned with the impact on the financial system and economy.
