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At the new UBS in Switzerland, 3,000 employees must clear their desks, the bank announced at the end of August. 2,000 layoffs directly affect the CS workforce, and another 1,000 bank employees need to pack their bags once CS Switzerland integrates. Here too, it seems likely that significantly more CS workers will be affected by the reduction. CS bankers are aware of this. The idea that the dismantling process will be completely fair seems like a pipe dream.
Workers therefore fear a two-class society, as “NZZ am Sonntag” writes. This is despite CEO Sergio Ermotti (63) wanting to persuade the CS workforce otherwise in a letter in April. He assures them that all CS and UBS employees will be treated fairly.
A problem with takeovers
But experts confirm that justice is often overlooked in hostile takeovers. “Mergers and acquisitions, by definition, represent a context that can lead to a high level of violation of justice,” behavioral economist Gerhard Fehr (52) tells “NZZ am Sonntag”. Integrating one group into another is a monumental task. It is completely normal to ignore norms and social conventions.
At UBS, this is clearly seen in the filling of senior positions, the majority of which are held by UBS staff. CS people are often left out.
This could also harm UBS itself: As fairness studies found in the 1990s, anyone who feels they are not being treated fairly will refuse service. “If we feel that our justice has been violated, we are ready to punish others and bear high costs for this,” says Gerhard Fehr.
Employer harms himself
The company’s reputation may also suffer as a result: Those affected tend to speak badly about their employers. In fact, it does not matter whether there is actually a violation of justice objectively or whether the situation is only subjectively perceived as such.
Simon Carl Hardegger (51), head of the Diagnostic Center at the ZHAW Institute of Applied Psychology, confirms that the violated subjective sense of justice leads to people no longer dedicating themselves to the company or even actively acting destructively. “NZZ am Sonntag”. This can range from careless use of company property to revenge and retaliation.
UBS also does not treat all CS employees equally. There’s a big discount going on right now in investment banking. The business is partially closed or closed. Dealing with employees with large client bases in wealth management or private banking is completely different. According to Fehr, fairness considerations are particularly important for CS personnel in the areas of risk management and compliance. “The management team needs to act in a very collaborative way here because regulatory know-how is vital for the continued existence of the big bank,” he tells “NZZ am Sonntag”.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
