Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Credit Suisse employees in the UK who transferred to UBS when the two banks combined are still eligible for paid sabbaticals unlike their colleagues, highlighting disparities in staff benefits almost two years after the UBS rescue merger.
According to people familiar with the details, some UK staff who previously worked for Credit Suisse can take up to three months of paid sabbatical, a benefit offered by their former employer but not UBS.
Under the scheme, ex-Credit Suisse employees can request the additional leave every five years. Employees were paid their full salary during the first month, falling to 80 per cent in the second month and 60 per cent in the third, the people said.
While the legal merger of the two banks was completed last year, some former Credit Suisse employees in the UK remained on their original contracts, meaning they were entitled to benefits offered by their former employer, the people added.
The preservation of the Credit Suisse-era sabbaticals underlines some divergence in benefits offered to staff at the group amid the three-year integration of the two lenders.
Banks have used sabbatical leave to try to reduce staff burnout and improve retention, especially during the pandemic when there was pressure to improve the work-life balance of employees.
However, large investment banks have started to row back on perks, with lenders such as JPMorgan Chase and Barclays in recent weeks demanding more regular office attendance.
UBS is in the midst of job cuts, with 10,000 roles axed since the 2023 takeover.
By the end of last year, it had a workforce of nearly 109,000 but executives are targeting a headcount of 85,000 by the end of the integration process in 2026. The Financial Times has previously reported that the reduction will come from redundancies and natural attrition.
UBS bosses once feared the challenges of integrating Credit Suisse staff, given that its former rival had been far more willing to accept risky clients.
After the takeover, UBS chair Colm Kelleher said the bank was “worried about ‘cultural contamination’”, adding that it would have “an incredibly high bar for who we bring into UBS”.
UBS said: “While the UBS and former [Credit Suisse] employee benefit packages vary in certain aspects, both are attractive and competitive with market terms.”
It added: “By transitioning to UBS contracts, UBS employee benefits will generally apply. All employees are informed about their benefits and the way forward.”
Read the full article here
