Ultimate Guide on Implications & Context of https://finanzasdomesticas.com/el-ere-de-bbva/

Introduction

https://finanzasdomesticas.com/el-ere-de-bbva/: The ERE is the term used by the banking industry. It is a method used to lay out the employees. ERE is the short form of Expdeiente de Regulacion de Empleo which means “Employment Regulation File”. During the pandemic of COVID-19, the banking industry faced many challenges. To overcome these challenges, counteract over expenses, strategies for the future, and re-model workforce structure, the banking industries opt for the method of BBVA’s ERE. In this article, we will shed light on its impact on employees, the bank, etc.

Background of https://finanzasdomesticas.com/el-ere-de-bbva/

BBVA is a company based in Madrid, Spain. It provides financial services and strategies in the bank’s policies facing tough conditions. It was founded in 1857. Since its launch, it has spread its work across Europe, and the US.

The Need for https://finanzasdomesticas.com/el-ere-de-bbva/

During the first wave of the COVID-19 pandemic, the financial sector has faced many technological and financial issues. These issues have forced banks to opt out of BBVA’s ERE to overcome the challenges. In this regard, BBVA is quite helpful as it provides technical solutions while maintaining profit.

https://finanzasdomesticas.com/el-ere-de-bbva/:What is ERE?

The ERE as explained in the introduction section is the mechanism used in Spain to adjust the workforce under special circumstances like the COVID-19 pandemic and economic difficulties. It gives SOPs to companies or banks to ensure transparency and employee rights protection.

https://finanzasdomesticas.com/el-ere-de-bbva/:Types of ERE

There are two types of ERE. Temporary ERE means a reduction in employees for a specific period. While permanent ERE means permanent job reductions.

https://finanzasdomesticas.com/el-ere-de-bbva/:BBVA’s ERE Implementation

BBVA announced its ERE in 2021 in which it permanently reduced thousands of workers. The reason behind the massive reduction in the workforce was the digital transformation of the banking industry which required less workforce, cost reduction, and market positioning.

https://finanzasdomesticas.com/el-ere-de-bbva/:Communication with Employees

According to the labor law of Spain, companies need to have proper plans and communication with their employees before implementing any method of ERE. The bank needs to have meetings with employee representatives and discuss the possible terms of termination or reduction in jobs and offer compensation available to affected employees.

Impacts on Employees & Their Reactions

The ERE created uncertainty and anxiety among employees. The bank offered severance packages and support services to affect. But still, that wasn’t enough as people lost jobs for which they had been working for almost 10 years. Employee’s reactions were mixed. Some understood the reason for ERE while some expressed annoyance over the procedure. Some were heartbroken over the loss of valuable colleagues.

Broader Implications for the Banking Sector

BBVA’s ERE is usually opted by the banking industry to streamline its operations and to compete in the international market. The introduction of online services and the transformation of banking towards digital banking also forced the banking industry to lay out employees to reduce expenditures in terms of salary and services and gain more profit.

On the other hand, the procedure of ERE also raises questions about employee’s rights and their future. It creates a sense of uncertainty among people and anxiety. Think of a worker who worked in a bank for almost 15 years. The moment this person is asked to leave the premises due to the layoff program of the bank, it will create panic for him and his family.

Conclusion

The ERE makes cuts in the number of employees and reduces the workforce. But it is also the need of time as this allows the banking sector to grow eventually helping to make the country’s economy stable. Although there are certain laws under which banks are bound, in the end, it all depends on the expenses and profitability of the bank. See More