Commerzbank’s withdrawal from the Luxembourg site: social plan for all employees

As announced in 2021, Commerzbank will discontinue its operations at the Luxembourg site. This will affect Commerzbank AG Luxembourg Branch (NLU) and Commerzbank Finance and Covered Bond S.A. (CFCB), whose closure processes will proceed at different speeds. This means, among other things, that a total of no fewer than 169 employees (159 of them at NLU) will lose their jobs. NLU plans to close by the end of 2024 at the latest.

As a reminder, Commerzbank is a long-standing player in Luxembourg’s financial center that will now leave the country. When Commerzbank came to Luxembourg in 1969, it was the second German bank to choose the Grand Duchy as the European country for its upcoming strong international expansion.

For CFCB, which is organizationally and operationally strongly interwoven with NLU, the further development is currently still being worked out, so that a concrete closure date has not yet been set. In order to include and protect the future of CFCB employees, CFCB has as a precautionary measure participated in the negotiations so that the social plan will also apply to its 10 employees in due course.

Together with the staff delegation, ALEBA led the negotiations with the management, supported by the LCGB and the OGB-L. The main demands were pushed through in a transparent and open, if at times tense, exchange. Ultimately, an agreement was reached between all parties in the interests of the employees and a social plan was signed on April 5, 2022.