The management of the National Bank is working on its plan to encourage voluntary departures in order to reduce its working expenses, as part of its strategy to return to profitability. Managing consultant Alexandros Tourkolias announced that the bank’s goal is to see 2,000 employees depart by the end of the year, which translates to roughly 15% of bank’s staff in Greece. These departures could reduce operating expenses by up to 120 million euros.
The European Commission believes that the negotiations of the National Bank with the European Commission of Competition (DGComp) will be complicated by the financial burden on the benefit fund. Overall there is a sense of optimism that the voluntary departures will occur without a hitch by the end of the year, thus allowing the bank to carry on with its domestic operations.
Bank officers note that its proposal entails supporting the fund with employer contributions worth 6 million euros. The bank’s restructure plans also includes introducing a new sector-wide contract abolishing balance benefit in 2014 and reducing wages by about 10%.
Since the crisis broke out the bank has carried out a number of restructures, which have seen its operating costs drop by 23% since the semester of 2010. According to data regarding the first semester of 2013, staff expenses were reduced by 12% on an annual basis, with overall expenses reduced by 6%.
