Social plan at CREDEM INTERNATIONAL (Luxembourg) S.A.: Referral to the ONC

In late July 2018, the ALEBA, OGBL-Secteur Financier and LCGB-SESF unions were invited to participate in negotiations on a social plan at CREDEM INTERNATIONAL (Luxembourg) S.A. for all 15 of the bank’s employees. Unfortunately, the negotiations proved unsuccessful and the case was referred to the Office National de Conciliation (National Conciliation Office – ONC) on Thursday 9 August. In this press release, the unions outline the situation as it stands.

CREDEM has decided to cease operations in Luxembourg after 45 years. The success of the business over that period (the bank achieved average annual profits of more than EUR 18 million for the last 10 years) may be attributed to the bank’s loyal and faithful employees, who have been in their post for an average of 20 years.

In light of this, ALEBA, OGBL-Secteur Financier and LCGB-SESF are outraged by the way in which the management is proceeding: negotiators have not been given the final say as the group’s management in Italy is refusing to negotiate with the unions. Moreover, the management’s preparations were woefully inadequate: they arrived on the first day with a draft consisting of a grand total of three lines! Lastly, the unions wish to stress that the documents produced by the bank’s lawyer are not an accurate reflection of the negotiations; in reality, the lawyer repeatedly returned to points that had already been agreed. This has never been seen before in negotiations on social plans in the financial sector.

At the end of the legal negotiation period, the proposal put forward by CREDEM was deemed disrespectful and insulting by its employees, who will lose their jobs and be left in difficult financial circumstances, with all of the social and familial consequences that may arise as a result. Indeed, the current proposal falls far short of practices normally applied in similar situations and does not even equate to a quarter of what is usually accepted in the Luxembourg banking sector.

ALEBA, OGBL-Secteur Financier and LCGB-SESF therefore strongly condemn this unacceptable attitude. It demonstrates the bank’s reluctance to honour its social responsibilities towards its employees, and this is with the assistance and advice of its legal counsel.

Employees who have made sacrifices for the bank over the years are now being offered next to nothing by the management. They will not stand for it. In-house protests are already underway and a protest outside the ONC will be organised in the near future.


Press release by ALEBA, OGBL-Secteur Financier and LCGB-SESF, August, 13th, 2018

Contacts for the CREDEM case:

Matthias Lindauer, Legal Adviser at ALEBA,

Eddy Girardi, Coordinator at ALEBA,