Italy: 3,500 early retirements planned at bank Monte dei Paschi this year

Troubled Italian banking group Monte dei Paschi di Siena signed an agreement on 4 August with the FABI, First-Cisl, Fisac-Cgil, Uilca and Unisin trade unions, under which there will be 3,500 voluntary departures this year – out of the 21,000 people employed by the group – through an early retirement scheme. The aim for MPS is to help it execute its 2022-2026 strategic plan. Managerial staff at the Italian banking group (excluding executives) whose pension rights begin between 1 December 2022 and 1 December 2029 will be able to leave as of 30 November by accessing the banking sector’s solidarity fund, which will allow them to receive an allowance until they retire. Together with the supplement paid by MPS, these people will receive an income of between 80% and 85% of their last net monthly basic pay until they retire. Employees who are eligible for one of the forms of early retirement in Italy will also be able to take advantage of exit incentives ranging from four to 16 monthly payments. These are, according to the First-Cisl trade union, “the best conditions negotiated in the last 10 years of the group”. With a view to achieving generational renewal at the bank, MPS is expected to make one new hire for every two departures, meaning some 1,750 arrivals by 2026. This proportion is commonly adopted in banking sector union agreements. To motivate employees, MPS is also committed to reopening collective bargaining on social protection and well-being at work, career paths, promotions and bonuses. Founded in 1472, MPS claims to be the oldest bank in the world. It was nationalised in 2017, with the Ministry of Economy holding a controlling stake of over 64%.