Eurobank, Greece's third-largest bank, will launch a voluntary redundancy program in a move to shift 500 employees to its loan services unit FPS as part of broader restructuring plans.
The move will help the bank maximize benefits and incentives offered to employees who choose to continue their career at FPS as the extra compensation workers will receive reaches 10 monthly tax-free salaries.
The plan has been agreed upon with the lender's union group and paves the way for the fast and smooth transition of staff members within the framework of Eurobank's Acceleration Plan that was unveiled in the fall of 2018. As part of this overhaul, Eurobank agreed last month to sell a majority stake in FPS to Italian debt recovery firm doValue.
In an announcement made on Wednesday, the incentives offered to workers will also include a further minimum payment of 25,000 euros, which effectively means that some 40 percent of employees who will be transferred will receive an amount equivalent to 15 salaries. The compensation will be paid to workers as a one-off payment once they sign their new work agreement, while their current benefits (such as pay levels) will be applicable in their new job at FPS.
Officials at the bank tell Business Daily that the target is to allow workers to move to FPS on a purely voluntary basis as they take into account growth prospects offered by the new company and the benefits on hand.
Eurobank chief executive Fokion Karavias and his peer at FPS, Theodoros Kalantonis, are presenting the incentives to staff members, along with the goals set so that FPS becomes the largest loan servicing and property management company in Greece with the help of technology offered by Altamira, that is controlled by doValue.
The deal was made with workers, without being brokered by a third party, and is considered to be of exceptional importance, reflecting the maturity of the sides involved in preparing for future challenges, according to Eurobank officials.
The Greek lender wants to complete the staffing of FPS in February so that it can move ahead with the restructuring of the group in March.
This will allow FPS to be fully operational by April and Eurobank to drop its nonperforming loans ratio to 15 percent (from 31 percent currently). The bank is aiming to further cut this figure to a single digit by the end of 2021.