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Hundreds of bank staff protest in Madrid to demand pay rises

Published 08/02/2024, 15:14
Updated 08/02/2024, 15:17
© Reuters. FILE PHOTO: Buildings are reflected on a logo of a Santander bank branch in central Madrid, Spain, April 6, 2016. REUTERS/Juan Medina/File Photo
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MADRID (Reuters) - Hundreds of Spanish bank employees took to the streets in Madrid on Thursday to demand a pay rise they say is justified by record 2023 profits at lenders such as Santander (BME:SAN) and BBVA (BME:BBVA).

Banking staff and affiliates of the main Spanish unions chanted "our sacrifice, your profits" and waved banners calling for a "recovery in wages and better working conditions".

CCOO, Spain's largest union, is demanding a 17%-23% pay rise over a three-year period from 2024 compared to Spanish banking association AEB's offer of an accumulated 8% increase over four years, Javier De Dios, a CCOO representative said.

AEB declined to comment.

Spanish banks and the country's two biggest unions reached an agreement to raise wages of employees in the sector by 4.5% in 2023 compared to 2022, but that only partially offset the loss of purchasing power caused by steep inflation.

Protests in the sector in the past have been directed against staff cuts but attention is now turning to wages.

"It is about time we saw some of these record profits in our pockets", said Jesus Sanchez, a 56-year-old Santander employee.

The protests come at a time when banks' profits have been buoyed by a rise in interest rates and more expensive mortgages while keeping a lid on rates for savers.

© Reuters. FILE PHOTO: Buildings are reflected on a logo of a Santander bank branch in central Madrid, Spain, April 6, 2016. REUTERS/Juan Medina/File Photo

"Higher bank profits are here to stay and this is seen in higher dividends and share buybacks but not passed on to clients," said Jose Maria Martinez of the CCOO union.

CCOO has called for workers to down tools for two hours on Feb. 26 and for a one-day strike on March 22 if demands are not addressed.

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