A union is claiming that voluntary schemes being offered to HSBC employees are “inferior” to the terms of the collective agreement, despite having been endorsed by the Malta Union of Bank Employees. 

In a circular letter issued last week, the Independent Bankers Union accused the MUBE – the officially recognised union at HSBC – of “collusion” with bank management to the detriment of employees. 

However, MUBE is refuting such claims while pointing out that the bank may offer different terms from those listed in the agreement, on condition these would be endorsed by the same union.

The voluntary schemes were announced last week after HSBC said it was closing down eight branches to focus more on digital services. 

Bank sources said the move took many by surprise as only last April HSBC said it had “no appetite” to offer early or voluntary retirement schemes. Such a commitment was made in an internal document, seen by Times of Malta outlining a series of structural changes in the pipeline. 

Now that the schemes have been rolled out, the IBU believes the terms fall short of the ones established in a particular provision of the collective agreement regulating redundancies and early retirement. 

According to this clause, employees taking early retirement schemes are eligible for a lump sum ranging between three and six times the terminal annual salary. 

However, in the scheme endorsed by the MUBE, the limit is capped at the minimum level. Moreover, the IBU is saying that contrary to previous schemes, retiring employees will no longer enjoy staff benefits after leaving, such as reduced lending interest rates.

“Why would MUBE issue other schemes which are way inferior when they know that if they did not agree to the new schemes the bank would have to apply the superior terms under the already existing schemes?” IBU president Mark Muscat told Times of Malta. 

These are voluntary schemes and not early retirement

Contacted for a reaction, HSBC noted it adhered to all its obligations, including the collective agreements signed with both MUBE, which was the “principal recognised union”, as well as with the General Workers’ Union, which represented non clerical staff.  

“The bank works in a constructive manner with both unions to safeguard the wellbeing of all its employees,” a spokesman said. 

MUBE president William Portelli insisted these were voluntary schemes and not early retirement.

“Taking into context all the factors and circumstances as presented and after evaluating feedback received from members across the board, in line with our collective agreement clause 12(a) ‘any such other scheme agreed between the bank and the union’, MUBE negotiated two ad hoc voluntary schemes,” he said. 

The schemes, the terms of which were divulged to this newspaper by Mr Portelli, state that the lump sum on offer would be three times the basic terminal salary. Other benefits included a terminal statutory bonus, terminal car cash allowance where applicable, and an additional top-up between €3,500 and €5,000. 

Employees must be at least 43 years old to be eligible. 

Apart from the “collusion” claims, the IBU is also at loggerheads with the bank’s management over HSBC’s refusal for union officials to represent members during internal grievances and disciplinary procedures, unless such officials are also bank employees.