Bank collective agreements, Sileoni: ‘With 38 billion in profits, there are no excuses for the pay rise’

Talks between the Italian Banking Association (ABI) and the trade unions over the renewal of the banking sector’s collective agreement are set to continue on 9 and 19 November, but there are still no signs from the banks that the negotiations are moving forward. However, according to Fabi’s general secretary, Lando Maria Sileoni, the figures should leave no doubt as to how to proceed and leave no room for excuses.

‘Between 2022 and 2025, according to data from the Bank of Italia, the banking sector’s revenues rose from 88 to 110 billion euros, net interest income from 45 to 60 billion, and net profits from 22 to 38 billion, representing a 72 per cent increase,” says Sileoni. Over the same period, labour costs rose from 29 to 31 billion, a mere 7 per cent increase, despite the 435-euro-a-month pay rises secured under the latest collective agreement. There are therefore no excuses for not renewing the agreement. On average, each bank employee generates 430,000 euros in revenue per year, against labour costs of around 77,000 euros, taking a major banking group as a benchmark. Meanwhile, banks distribute 75–80 per cent of their profits to shareholders.’ The trade unions do not dispute the legitimate return on capital, but believe that ‘there must be a balance in recognising the contribution of those who produce these results. ‘Our pay demand is responsible and sustainable because it takes into account inflation and an annual 1 per cent productivity-linked increase, against expected profits of around 40 billion even in 2026,’ the trade unionist continues.

Beyond the economic aspects, Sileoni believes that “CASL Abi continues to lack an overarching vision for the future of the banking sector. We have received no answers either on the economic aspects of the contract renewal or on how to address changes in the sector, from the organisation of work to new technologies. Above all, it is necessary to clarify which matters should be governed by the national collective agreement and which should be left to be negotiated within individual banking groups. This is a fundamental political choice, as it concerns the role that the national collective agreement must play in protecting workers and managing the sector’s transformations. On the regulatory front, the national collective agreement must guarantee common safeguards against the impact of bank mergers and artificial intelligence on employment and professional skills. We expect concrete answers from the ABI on both the economic and regulatory fronts’.

The General Secretary of First Cisl, Riccardo Colombani, looks back and points out that ‘the national collective agreement for bank employees has been out of force for seven months now. Workers are seeing their purchasing power decline, whilst the banks are posting stellar results. According to analysts, in November four major banking groups will pay out over €8 billion to shareholders as an interim dividend for 2026. This sum is vastly greater than the cost of the pay rises demanded for the entire sector over a three-year period’. And that is not all. According to Colombani, the pay rises demanded are also due to the fact that ‘in the face of rising salaries for top managers, the proportion of staff costs relative to net interest and other banking income continues to fall and is now much lower than it was at the end of 2022’.

Fulvio Furlan, General Secretary of Uilca, says that ABI has failed to provide ‘the responses we were expecting in order to engage in constructive discussions on the renewal of the National Credit Sector Collective Agreement. The analysis it has carried out on the sector’s prospects and forthcoming changes demonstrates the nature and extent of the difficulties that workers in the sector face on a daily basis.” According to Furlan, ‘all the indicators relating to assets, profits and labour costs show that the 15 per cent pay rise we, as trade unions, have jointly demanded is entirely consistent with the current situation and the banks’ growth prospects. We expect positive responses on these issues.”