December 20, 2012 / 9:17 AM / 5 years ago

All but radical CGIL union back Monte Paschi job cut plan

MILAN, Dec 20 (Reuters) - Italy’s banking unions, with the exception of hard-line organisation Cgil, have signed up to a restructuring plan at Banca Monte dei Paschi di Siena that will see over 2,000 jobs being cut or outsourced.

The Siena-based bank, which has asked for state aid to plug a capital shortfall, has faced opposition from unions over a plan to cut 15 percent of the bank’s workforce and close 400 branches out of 3,000.

The agreement, which will be presented to the bank’s board on Thursday, includes the outsourcing of 1,110 administrative jobs, down from an initial estimate of 2,360 jobs.

Other 1,000 employees at the bank are due to quit upon receiving incentives.

MPS, the world’s oldest bank, was hit hard by the euro zone debt crisis because of its large exposure to Italian government bonds and the legacy of its costly acquisition of smaller rival Antonveneta in 2007.

It was one of four European lenders which failed to meet tougher capital requirements and, in June, was forced to ask for state aid. (Reporting by Antonella Ciancio; Editing by Lisa Jucca)

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