Citibank Taiwan Ltd (花旗台灣) must ensure that its agreements with prospective buyers do not jeopardize its employees’ rights, the Financial Supervisory Commission (FSC) said on Thursday.
The commission made the remarks in response to media reports that the bank had signed confidentiality agreements with prospective buyers barring them from hiring its employees.
Citibank Taiwan has been seeking a buyer for its consumer banking business after its parent company, Citigroup Inc, in April announced that it is to close its retail banking operation in 13 markets — including Taiwan.
Photo: Peter Lo, Taipei Times
Citibank Taiwan’s consumer banking sector has about 2,500 employees.
The commission will investigate the matter in collaboration with the Ministry of Labor, Banking Bureau Chief Secretary Hou Li-yang (侯立洋) told a news conference on Thursday, adding that it has demanded that the bank file a report with the commission immediately.
The buyer and the seller in a merger must ensure that they do not breach the rights of employees and that the merger would not have a negative impact on society, Hou said.
Labor protection would be a key factor when the commission reviews the deal, he added.
Citibank Taiwan said in a statement that it respected its employees’ career plans and choices.
“Some employees have left and transferred to other financial companies since our announcement that we are selling the retail banking unit,” it said in a statement.
“This fact shows that we respect our employees’ choices and have not stopped them from finding new jobs via normal channels,” it said in the statement.
The commission later on Thursday also confirmed that it has received a complaint from Citibank Taiwan’s labor union saying that the bank’s revised bonus system is unfair as it requires employees signing a contract to give up certain rights.
Local media reports said this includes giving the bank the right to reclaim bonuses if it deems an employee has committed an act that is critical or deemed harmful to the company.
“We will look into what changes the bank has made and whether they are reasonable,” Hou said.
Two local financial conglomerates and two foreign banks have expressed an interest in Citibank Taiwan’s consumer banking operation and have submitted offers, according to Bloomberg and Chinese-language news outlets.
They are Fubon Financial Holding Co (富邦金控), Cathay Financial Holding Co (國泰金控), Singapore’s DBS Group and Standard Chartered, the reports said.
None of the companies has verified the reports.
Fubon Financial said in a filing with the Taiwan Stock Exchange on Thursday that the board of directors of its banking unit, Taipei Fubon Commercial Bank (台北富邦銀行), approved a proposal to invest in financial institutions, but did not disclose the investment target.
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