As Deutsche Bank continues to execute its Strategy 2020, it is committed to carrying out staff reductions in a transparent and socially responsible manner. The company’s close and constructive cooperation with employee representatives and social partners is marked by mutual trust.
The involvement of works councils in Germany is governed by the Works Constitution Act, which stipulates the rights and duties and prescribes in which cases employers are obligated to involve a works council. The works council represents the interests of Deutsche Bank’s employees, and its members are elected every four years. On behalf of the employees, the works council enters into discussions and negotiations with the employer. The different bodies – local works councils, general works councils, group works council and European works council – have different responsibilities and rights of involvement (such as negotiating on balance of interest agreements as part of restructuring measures and negotiating on bargaining agreements, e.g. compensation-related).
The bank’s executive staff has a separate representative body, which is governed by German law (“Sprecherausschussgesetz”). Involving all relevant bodies early and to the fullest extent is common practice at Deutsche Bank.
As part of its Strategy 2020, which was first announced in 2015, the bank implemented several restructuring measures. During 2016, a total of 14 balance of interest agreements were completed, with a planned reduction of more than 4,000 jobs in Germany by the end of 2018. The job cuts mainly affected the bank’s Private & Commercial Bank, Global Transaction Banking, Chief Operating Office, the Finance and Risk Management functions, HR, Communications & CSR and DB Research. In 2017, two agreements covering non-executive staff were completed, with approximately 300 jobs (gross) affected in Wealth Management and Risk.
Deutsche Bank’s holistic change concept, which is embedded in the bank’s social plan, provides support to employees affected by restructuring measures by promoting employability and offering individual coaching in change scenarios. Thereby, a comprehensive set of measures and systematic assistance is available to staff, managers, members of the works council and HR advisors involved in change processes. Furthermore, the concept supports the bank’s strategy to fill open jobs with suitable internal candidates. It also utilizes a dedicated network of external partners to identify job opportunities outside the organization.
The majority of employees affected by restructuring measures made use of a broad range of coaching and advisory services on professional orientation and redeployment. For a number of employees, who had not yet been placed, individual support continued in 2017. Demand for the pro-active offering, including workshops, keynote speeches and web trainings, remained high during the year. Many employees have taken a more pro-active stance to dealing with their professional situation and perspectives, pursuing development opportunities and planning their careers. Since the beginning of 2016, approximately 15,000 employees have made use of the various offerings.
To promote employability and aid the professional orientation of employees aged 50+, Deutsche Bank started a pilot project in Germany entitled “Success based on experience – actively shaping the next stage of your (work) life”. This is in line with a general focus on age diversity across the organization as Deutsche Bank seeks to foster and inclusive work environment across generations.
Deutsche Bank is in the process of introducing a dedicated employability program supporting the integration of Postbank, with senior management, HR and Postbank’s works council negotiating a holistic approach to the restructuring.