🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Deutsche Bank and union reach pay deal for Postbank employees

Published 02/05/2024, 10:31
Updated 02/05/2024, 15:16
© Reuters. FILE PHOTO: The logo of Deutsche Bank is seen in Brussels, Belgium December 6, 2022. REUTERS/Yves Herman/File Photo
DBKGn
-

FRANKFURT (Reuters) -Deutsche Bank's management has reached a pay deal with unions for thousands of workers at its Postbank division, putting an end to months of wrangling, both parties said on Thursday.

The bank will pay employees 11.5% more in a two-step raise, they said. That is less than the 15.5% unions had been demanding, but in return, Deutsche Bank (ETR:DBKGn) agreed to rule out forced layoffs through December 2027.

The agreement clears up one of several hurdles facing Germany's largest lender at its Postbank brand.

Deutsche recently disclosed it could be on the hook for up to 1.3 billion euros ($1.39 billion) in a long-running lawsuit filed by former Postbank shareholders claiming it underpaid for its purchase of Postbank during the financial crisis.

Deutsche has also been grappling with customer service problems at Postbank, resulting in the bank's regulator overseeing a clean-up and cuts in bonuses for some of Deutsche's top managers.

Deutsche Bank has already factored the pay deal into its financial planning and it doesn't alter the bank's commitment to its costs targets, a spokesperson said.

© Reuters. FILE PHOTO: A Postbank sign is seen in Munich, Germany, August 1, 2017. REUTERS/Michaela Rehle/File Photo

Jan Duscheck, chief negotiator in the talks for the Verdi labour union and a member of Deutsche's supervisory board, said the deal gives employees long-term job security.

($1 = 0.9349 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.