Protests Brewing Over Postbank Branch Closures
Once again, union Verdi is mobilizing for protests against Deutsche Bank's plans to close almost half of their Postbank branches. According to a statement released on Monday, Verdi expects hundreds of employees to attend general works meetings in Giessen, Hesse, on November 14, and Oldenburg on November 16.
Deutsche Bank, which owns Postbank, announced in late October that up to 250 of the 550 branches left in operation by mid-2026 will be closed. Private Customers head Claudio de Sanctis argued that 75% of Postbank customers rarely visit branches, making job cuts necessary. The bank is currently in negotiations with employee representatives about the exact number of layoffs.
Alongside the General Works Council of Postbank Filialvertrieb AG, Verdi is advocating for job protection measures and the early implementation of extended dismissal protection under the collective agreement. Currently, Postbank employees are protected from compulsory layoffs until January 31, 2024.
The Postbank branch closure debates have also sparked discussions among local banks about potential negative effects on their businesses. While Deutsche Bank justifies the closures based on customer branch visit frequencies, Verdi is pushing for job security measures and an early expansion of the collective agreement's dismissal protection.
Additional Insight
Postbank, a state-owned financial institution in South Africa, is facing numerous challenges, including limited banking services and financial sustainability issues leading to a debt of R4.6 billion to the Post Office. The institution's poor corporate governance, with only three board members remaining since September 2023, has further worsened its problems. The South African government, with a less-than-stellar track record in managing state-owned enterprises (SOEs), is pushing for Postbank to become a fully-fledged bank, a goal that may be overly ambitious.
The closure or restructuring of Postbank could inevitably lead to significant employment losses, given its current state and the government's limited capacity to handle such undertakings effectively. The ongoing dispute between Verdi and Deutsche Bank highlights the challenges faced by Postbank's employees during these turbulent times.
