The Laurentian Bank will eliminate 350 jobs by 2019
The axe falls again at the Laurentian Bank, which sword its workforce by approximately 10 %, while the negotiations to renew the contract work of approximately 1200 unionized in Quebec trample.
This restructuring, which is expected to take 12 months, was announced Wednesday by the financial institution, which has also unveiled results below expectations in the first quarter, in which its profits plunged by 32 % — which was a shock to the share price on the Toronto stock Exchange.
The bank intends to “streamline” 350 positions, primarily in Quebec, related to the administrative functions in its sector of personal services through attrition, early retirement as well as “targeted reductions”.
“This decision is consistent with our transformation plan and should not surprise anyone,” explained the president and chief executive officer of the Laurentian, François Desjardins, during a conference call with analysts.
Depending on the direction of the seventh bank in the country, the restructuring will save annually between $ 15 million and $20 million.
In its turn launched in 2016, the Laurentian wants to offer that advice in its branches by the end of 2019. The conversion was carried out in 23 out of 92 locations in its network.
However, the announcement has left a bitter taste to the Union of professional employees and bureau (SEPB), affiliated to the FTQ), who says to expect a “final offer” on the part of the employer on Friday. Its members are without a work contract since December 31, 2017.
“It is really deplorable, has launched the director, québec SEPB, Katerie Lefebvre, during a phone interview. Since about three years, the number of our members (at Laurentian) has shrunk by almost half.”
The negotiations were acrimonious between both parties and according to the union, the employer has “repeatedly threatened”, while he was at the negotiating table, to impose “lock-out” to union members.
Ms. Lefebvre did not want to say if she expected a labour dispute in the event of the rejection of a final proposal.
Despite requests by The canadian Press, Laurentian did not want to react to the statements of Ms. Lefebvre and confirm if a final offer was indeed about to be presented. “Out of respect for the bargaining process, we do not comment on the discussions that occur during mediation sessions,” wrote a spokesperson, Hélène Soulard, by e-mail.
Interacting with analysts, Mr. Desjardins stated that the impasse in negotiations had been a “distraction” for employees, as well as the direction.
Regarding its financial performance for the first quarter ended January 31, the Laurentian has disappointed by posting a net income of $ 40.3 million, or 88 cents per share, while its revenue fell 9 %, 242.3 million $.
The institution has been affected by the decline in income from the sector of the financial markets. The volatility of the markets at the end of 2018 has weighed on the quarterly results of several canadian banks.
Wednesday afternoon, on the floor in the toronto area, the title of the Laurentian abandoned 8,29 % or 3,82 $, to negotiate 42,24 $.