The loss of banks' roles, transforming them overnight into "zombie banks," has already cost around 7,500 employees in the sector their jobs. According to the latest data from the Central Bank of Lebanon, the number of employees in the banking sector decreased from approximately 25,941 at the end of 2018 to 18,440 in 2021. This estimated decline of 29 percent could rise to significantly higher rates if bank owners continue to "wash their hands" of responsibility for the collapse, insisting on leading their "fractured" association to protect themselves instead of safeguarding the sector and protecting depositors, as well as caring for employees who have dedicated years of their lives to serving the national economy.
Between 20 and 30 percent of employees in the banking sector left their jobs voluntarily, according to Asaad Khoury, head of the "Union of Bank Employees in Lebanon." "As for the remaining number, estimated at more than 4,000 employees, they were dismissed individually or in small groups, and according to an acceptable equation for most of them." Two main factors contributed to this situation: first, the banks, pressured by the union and the employees' federation, bypassed Article 50 of the Labor Law, which allows institutions to grant severance pay ranging from two to twelve months. Most of the compensations given did not fall below 20 months. Second, the issuance of Circular 151 allowed for the withdrawal of compensations based on an exchange rate of 8,000 Lebanese pounds to the dollar, after banks converted it to dollars based on the official exchange rate and deposited it into the accounts of those laid off.
The problem is that the two elements currently used for dismissals are unstable and uncertain. The lack of a clear vision from the Banking Association regarding the sector's future and its refusal to renew collective labor contracts according to fair employment and dismissal standards on one hand, and the potential cessation of Circular 151 at any moment on the other hand, raise serious questions about the future fate of the dismissed employees. This is especially concerning given the ambiguity surrounding the banking sector and the expectation that the number of layoffs will grow significantly with the onset of serious restructuring efforts. According to Khoury, "The future of thousands of employees who support tens of thousands of families depends on how any future plan addresses the banking sector. There is a significant difference between finding solutions for troubled banks and the bankruptcy of the sector as a whole. In the latter case, no employee will remain in the banks."
The loss of employees in banks presents job security issues, and their fear of being laid off at any moment is coupled with work conditions that can be described as anything but comfortable. In addition to being the "sponge" forced to absorb the anger and resentment of depositors, they are suffering from a decline in benefits, particularly health benefits. While bank management deliberately seeks to convert their health guarantees into lira or even threaten to stop them, employees have to fight on multiple fronts to maintain at least their minimal health entitlements and keep them in dollars, especially given the collapses seen in insurance institutions.
