The Bank of the Philippine Islands And Far East Bank and Trust Company: A Case Study on Mergers and Acquisitions

Abstract

Globalization is the newest tactic that imperialism is using to be able to control the world economy. It has been affecting all sectors of the economy of every nation, and this also includes the banking sector. To be able to keep up with competition, banks are forced to merge with or acquire other banks to survive the transforming financial landscape. Unfortunately, this would affect the jobs of many. This thesis was designed to delve deeper into the effects of mergers on the workforce, how they would change conditions of work, and the options that banks offer once rationalization processes would be in effect. The researcher had studied the merger between the Bank of the Philippine Islands and Far East Bank and Trust Company to know more about these effects. The researcher made use of different methodologies in making this thesis. Information from newspapers, magazine, newsletters, and circulars were gathered. An interview was made with one of the top officers of BPI, and survey forms were given out. A statistical report was done on the questionnaires as to whether the merger had a positive or negative effect on the workforce and working conditions. In conclusion, the merger between two of the country’s top banks had a negative effect on the workforce. Aside from affecting the tenure of jobs, it doubled the workload of some workers, while for others, their jobs had been cut in half to accommodate the incoming workers from the other bank. Banks should be able to think what effects that mergers can have on their workforce; but if it cannot be avoided, they must formulate solutions on how to save as many jobs as possible.