FRANKFURT Oct 14 Labour representatives on
Commerzbank's supervisory board have delayed an
attempt by the German bank to cut the size of its management
board by voting against the dismissal of two executives, three
sources familiar with the matter said.
The labour representatives, which in Germany are entitled to
half the supervisory board seats, voted against the dismissal of
personnel chief Ulrich Sieber and Jochen Kloesges, who is
responsible for non-core assets, the sources said on Monday.
The Frankfurt-based lender is in the midst of a cost-cutting
programme which includes shedding 5,200 of its 45,000 staff. It
also plans to reduce its middle management and cut the size of
its management board to seven from nine.
Axing management jobs is a logical step given the overall
reduction in size of the bank, which is 17-percent owned by the
German government. Cross-town rival Deutsche Bank's
management board has only seven members.
Labour representatives, however, argue it makes no sense to
grant the two board members high severance payments when they
could be made to work for the money, the sources said.
A conciliation committee of the supervisory board will now
meet within four weeks. But since it is unlikely to settle the
dispute, the chairman may use his right to break a stalemate and
make a decision at a subsequent supervisory board meeting, the
(Reporting by Alexander Huebner; Writing by Arno Schuetze;
Editing by Mark Potter)