Markets in everything, labor hoarding edition

by on June 3, 2009 at 3:48 pm in Economics | Permalink

"How would you like to spend more time with your family – like the
next five years?" is not the kind of offer employees usually want to
hear from their bosses in the depths of an economic crisis.

BBVA, Spain's second-biggest bank, has posed that question to staff as
part of its latest cost-cutting drive. It is hoping at least some of
its 29,954 Spanish employees agree not to come to work for up to five
years – in exchange for nearly a third of their usual salary and a
guaranteed job when they return.

The story is here.

1 Andrew June 3, 2009 at 3:55 pm

I think I did this. Do they bestow a PhD?

2 hibikir June 3, 2009 at 4:25 pm

The problem is that wages in Spain are so low compared to the cost of living that, for most bank employees, that 1/3rd doesn’t even get close to subsistence levels: Many bank employees are barely ‘mileuristas’, and would need to find another job immediately to remain afloat.

3 Ed June 3, 2009 at 5:03 pm

I’d take it if the offer of a guaranteed job in five years was put in writing, and guaranteed to the point where I would have a claim to compensation even if the company went bankrupt.

The offer lets you take a low paying service industry job for five years with the knowledge that the bank will top up your service industry salary, and you can return to banking. Without the option of returning, the resume gap could make it hard to return to your field if you left the bank.

4 spencer June 3, 2009 at 8:54 pm

Most banking jobs are low wage service type jobs.

Only a very small share of bank employment, especially in Spain are high paying currency and bond traders and other executive positions.

5 evian June 4, 2009 at 2:52 am

how hard is it to get another job that pays more than 2/3 of the average salary there, the most important things is goverment
should do more help to people who lost jobs . And meanwhile , goverment needs to help the people to get their another job asap.

6 Gabe June 4, 2009 at 11:51 am

I’d take the offer in a second.

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