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DBS Acquisition of Citibank Faces Labor Disputes, Union Claims 60% Reduction in Bonuses

DBS Acquisition of Citibank Faces Labor Disputes, Union Claims 60% Reduction in Bonuses

Since DBS Bank acquired Citibank's consumer finance business in Taiwan in 2023, labor disputes have arisen frequently. The DBS corporate union publicly accused on May 15 that the promised "three-year job security" during the merger is merely a formality, with frequent changes to the compensation system leading to significant reductions in bonuses, severely affecting employee rights and morale.

Citibank exits Taiwan. (Photo/AP NEWSROOM)

Union president Liao Chongyi pointed out that starting in 2024, they have protested multiple times against unreasonable design in the performance incentive system. The bonuses originally slated for issuance in February 2023 were postponed to May, and the new system set to be implemented in 2025 will result in some employees seeing their actual bonuses decrease by 60% compared to last year, affecting the livelihoods of over a hundred people. The union stated that they formally reported the issue to the company in February but received no concrete response, leading them to file a "non-performance lawsuit" and call for intervention from the Ministry of Labor and the Financial Supervisory Commission.

The union also criticized DBS for not respecting employee wishes during the merger process, arbitrarily changing work locations, frequently altering compensation policies, and even retroactively applying changes, which seriously undermines morale and leads to the loss of talented personnel. In response, DBS Bank emphasized that the company adheres to principles of integrity and complies with agreements made with Citibank and labor regulations, ensuring job rights for former Citibank employees for three years. Regarding the bonus controversy, DBS clarified that, after internal review, if the 2025 bonuses have the same performance as in 2024, the actual reduction will only be about 7%, contrary to the alleged 60% reduction.

DBS Bank's acquisition of Citibank in Taiwan. (Image from Google Maps)

DBS pointed out that adjustments to the compensation system are necessary to respond to market changes and enhance competitiveness, and that all related changes are discussed and communicated with employees, rather than being implemented unilaterally. They will continue to engage in dialogue with the union to create a fair and transparent work environment. DBS Bank took over Citibank's consumer finance business in 2021, with a total transaction value of nearly NT$93.6 billion, quickly becoming one of the largest foreign banks in Taiwan. However, the integration of corporate cultures has not been easy, leading to tense labor relations. The union calls on the company to heed employee voices, fulfill commitments, and avoid harming the long-term development of the company.

Citibank's business transferred to DBS Bank. (Image from Citi Taiwan Facebook page)