Bank mergers cause massive retrenchments

The Department of Labor and Employment (DOLE) expressed alarm yesterday over massive retrenchments resulting from bank mergers for the first nine months of the year.

Labor Secretary Bienvenido Laguesma said that from January to September, the banking sector has recorded a total layoff of 4,729 workers, the highest so far in the industry.

Among the banks that have merged with other financial institutions were Solid Bank, Equitable PCI Bank, and Rizal Banking Corp. Solid Bank alone accounted for 1,924 retrenched workers.

Laguesma noted that continuing company restructuring and mergers now account for nearly half or 43.7 percent of the total number of workers laid off during the period.

To address the impact of bank mergers, the DOLE and the Banking Industry Tripartite Council (BITC) have forged an agreement to facilitate employment of displaced bank workers.

Laguesma said the BITC has also adopted a resolution to address the growing number of displaced bank workers as well as ensure industrial peace in the event of other bank mergers.

"DOLE and the banking industry have agreed to work together not only in maintaining industrial peace, but also in addressing displacements," Laguesma said.

He also assured support for the BITC’s move to tap the computerized PhilJobnet skills matching system in assisting banks for their future manpower requirements.

Member banks experiencing difficulties can also enroll their employees for possible placement, Laguesma said as he encouraged unions to avail themselves of existing DOLE programs for displaced workers.

The DOLE program provides skills training and livelihood assistance to help workers find alternative jobs.