HSBC workers suspend strike amid stalemate over compensation dispute

HSBC employees have suspended their strike action, pending fresh talks with bank representatives, but their union has warned that industrial action will resume unless a “reasonable” compensation offer is tabled.

The Malta Union of Bank Employees (MUBE) said it decided to temporarily halt its directives following conciliatory talks with the Department of Industrial and Employment Relations (DIER) on Tuesday. Another meeting with a representative of the HSBC group was scheduled for Wednesday afternoon.

“Regrettably, to date the bank is yet to make a concrete proposal to unblock the impasse and initiate discussions,” the union told members.

The dispute erupted earlier this week after MUBE instructed HSBC staff to log off their systems and stage a sit-in protest, accusing the bank of refusing to engage on demands for compensation linked to the upcoming transfer of ownership.

At the heart of the dispute is a clause in the collective agreement entitling workers to terminal benefits in cases of redundancy, post abolition, or transfer of business “by way of merger, takeover or otherwise.” The union insists this provision should apply once HSBC Malta changes hands, entitling employees to a month’s salary per year of service, capped at three years.

HSBC, however, argues the clause does not apply since the transfer of shares will not result in termination of service. The incoming majority shareholder, Greek lender CrediaBank, has pledged that no job losses will occur for at least two years, with staff retaining their posts and working conditions.

Bank lawyers have also cautioned against setting a precedent as HSBC looks to exit other markets in the coming years. They point to the group’s 2022 withdrawal from Greece, where a similar dispute arose before operations were transferred to Pancreta Bank.