Union reports ‘gossip’ that HSBC Group considering to sell Malta core business

MUBE circular to HSBC employees claims HSBC Group migrating jobs away from Malta.

10 September 2010, 12:00am
by Matthew Vella

2 min read

HSBC Malta has not reacted to claims by the Malta Union of Banking Employees, of ‘gossip’ that it might be selling its core business in Malta, in a circular to HSBC employees.

Talks are ongoing between HSBC and the MUBE over a trade dispute on offshoring – the relocation of jobs out of Malta to cheaper destinations – which has been dubbed by HSBC as ‘project Whiteheart’.

In a circular to employees, MUBE claimed that there was “gossip reaching our offices… that HSBC is considering selling part of its core business.”

Sources said the bank has not reacted to these claims in talks with MUBE over this issue.

MUBE was reacting to statements by HSBC Group’s chief executive Michael Geoghegan, that its opposition to increased ‘offshoring’ would “simply not help Malta in attracting Group business onshore.”

HSBC has been relocating back-office operations at the HSBC Operations Centre to lower-wage countries such as Poland and India.

While Geoghegan has claimed that nobody was made redundant in Malta, the union says it is only because it has resisted proposals to remove necessary safeguards inside the collective agreement.

The MUBE said the bank has only imported 12 jobs to Malta while migrating 82 abroad. “This is not what we call an effort,” president William Portelli told HSBC employees in a circular.

Portelli told bank employees that HSBC’s call centre in Swatar, which employees 500, “is a deal between government and HSBC on the eve of an election and through a huge personal initiative by the last CEO. Therefore it is for a number of reasons that MUBE is disappointed.”

In his address to employees during the Malta road show, Geoghegan said MUBE’s reactions to offshoring “would not help Malta attract Group business on shore… we have made no one redundant. We will continue to work with the union but I strongly refute the Union’s assertion that management ‘is not keeping its word’.”

But the MUBE told employees in the circular that HSBC’s present administration “plays down [Malta’s] group performance too often. This is one main reason why on-shoring really does not happen.

“What will help Malta is when high officials declare that on-shoring cannot happen because we are unionized or because MUBE may have ulterior motives, which is absolute nonsense. Malta outperforms other countries which are not covered by union recognition or by a collective agreement,” Portelli said.

Additional reporting by Karl Stagno-Navarra.

Matthew Vella, a freelance journalist at MaltaToday, was formerly executive editor at Malt...

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Antonia Bartolo •

When MidMed Bank was given away, almost all of the property owned was freehold. The last evalauation of property held dated close to over five years back. Now the bank has divested itself of almost all the property, realizing a tidy profit following a policy of holding only leases. Looking back at the returns paid throughout the years, it does not take time to realise that it was paying back from the reserves accumulated by MidMed. The Bank inherited a sound and disciplined workforce, who outperform the majority of the HSBC group. Malta is a plum posting for the British employees and is considered as an optimable training ground for future overseas managerial wannabees. The cost to the Malta Group of the expatriates is phenomenal, with options of converted farmhouses, villlas with pools and Portomaso flats , as residences. Cars for own use and that of partners are part of a number of freebies. Not to mention the larges end of year bonuses, which in no way compare to those paid to the Maltese staff. HSBC immediately introduced the concept of Performance Mangement Reward system for its employees. Staff are given objectives which are supposed to be agreed to, instead they are forced down their throats, and unless they reach them , during the bi-annual appraisal, which has to follow an infamous bell curve and a calibration process, to strictly apply the bell curve,(first 5 /10% are excellent performers, the second 80% are good to average, the last 10% are underperformers) they are subjected to measures which include loss of bonus, withholding of wage increases, disciplinary measures, which includes dismissal. During the course of the year the Bank frequently chnages the goalposts or raqises the bar required for performance. Staff work long hours, frequently have no break and are expected to to use the little free time left in order to sell Bank products to meet the targets. Needless to say this sorry state of affairs is vehemently denied by management. However the number of staff undergoing work related induced stress problems and seeking assistance from the Bank sponsored Richmond Foundation are on the increase. Yes, the Bank finds it more cheaper to pay for the cure than to prevent the illness. The Bank's idol is Mammon. It breathes and lives for profit. Once profit dries up it moves on to new pastures. Offshoring of Maltese jobs has been going on for the past 3 years with sections of works being offshored or outsourced to local contractors. Offshoring and outsourcing created a lot of 'displaced' workers, disseminating uncertainty, fear and a lack of serenity amongst the hardworking staff. Offshoring to cheaper but less efficient sites, as borne out by the increasing number of complaints laid at the door of the India based call centre, will not slow down.

Joe Tanti •

Let this be a lesson to Gonzi and co. The selling off of our remaing bank re BOV must be rethinked. These foreign banks and companies are always after a quick buck to be obtained by the most minimal effort.Is this the "serhan il-mohh" as promised by GonziPN and where is "par idejn sodi" ? Whilst Gonzi is trying to minimise and do a heck of a lot of damage control to his party under seige, the situation in Malta is out of control. The same arguments against the sale of Air Malta is the same,whenever the other airlines feel that they can cut a better deal in some other country to their ultimate gain they would depart,just like British Airways and other airlines did in the past.The only ones to gain from these saales of our assets may they be banks,airlines,insurances etc are the commision agents who pocket millions of euros which I presume hoarded out to some offshore bank so as to escape detection and eventual taxation. Who knows maybe when the BOV and AIR MALTA are sold the goverment will use these funds to pay off the penalties of 400 million euros because of the power station debacle.?

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Hong Kong Shanghaid Banking Corporation. They Shanghaid Midmed with the help of John Dalli And Eddie Fenech Adami. The Government should renationalize it as said by Martin Borg and also get the Turner painting back.

Michael Gauci •

http://www.rudemacedon.ca/banketeering.html

Jon Sciberras •

Don't forget, HSBC is driven by communist style rule. They want to make the most money whilst considering human resource as the most inefficient cost. Therefore the cheaper the labour, the better the Bank profits. HSBC has always taken over quasi-bankrupt or very good bargains at a song and squeezed the lemon till its dry. Then let them out to dry. No need for anything else, the return on investment was well spent. The Malta branches will be empty shells, just a few branches to capitalise on monopoly. A leopard never changes his spots. Look at the HSBC history.

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In case the rumours prove right, the only option for the government is to NATIONALISE HSBC again. Those fat cats deserve all the aggrevation they justly deserve.

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@tal-hamrija Those jobs are actually occuppied in the majority by English people who have the accent to deal with english people. This overseas selling is nothing but a ploy by HSBC for the employees to put pressure on the union, that is why they are rumours. I agree with those that now see the selling off of Mid-Med as a diservice to the country and the ones who did it are safely making good money one as an EU commissioner the other as a pensioner on ex=presidential pension.

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I have left only one small account for practical purposes with HSBC when it took over MidMed. If it makes any Maltese worker redundant I shall also close this small account.

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What a shame have you done mr john dalli selling Mid Med bank to the HSBC.Now after they have eaten the MEAT they are trying to sell part of it's busness All the supporters of the NP should be ashamed of what mr John dalli done he too is eating the MEAT while he is commisioner of EU

Gordon Cassar •

But if I remember correctly, the PN told us that HSBC will bring investments, jobs and "serhan il-mohh". PN even gave HSBC the Turner painting of Tigne for free!

Michael Gauci •

HSBC moved hundreds of jobs away from the UK. Where did they take the business?......................Swatar Call Centre. Swings and roundabouts.

Adrian Pace •

Here we go again, banks acting in a god like manner. I have a proposal for MUBE, if HSBC decides to make employees redundant then Maltese citizens should just close their accounts with HSBC and deal with other banks. Only problem is that I am not sure whether I would trust other banks after the way they dealt with people's funds. Could MFSA please help me? Actually, who are you again? Maybe my safest bet is my mattress.