2nd UPDATE:Commerzbank Extends Job Pact To End-13 If Cuts Met

Commerzbank AG (CBK.XE) has agreed to extend a labor pact which forgoes compulsory redundancies through to the end of 2013 if certain job cut targets are met, German labor union Verdi said Thursday.

Commerzbank's works council and employer representatives are Thursday signing an agreement that the bank, which bought Dresdner Bank AG from Allianz SE (AZ) earlier this year, will extend its labor pact to the end of 2013, Verdi said.

Instead of compulsory redundancies, German companies can use measures such as early retirement and part-time working to cut jobs.

"It is our goal to carry out the job cuts related to the (Dresdner Bank) integration without compulsory redundancies," said Ulrich Sieber, Commerzbank management board member for human resources and integration.

Commerzbank has said it plans to cut about 9,000 jobs worldwide as part of the Dresdner Bank acquisition and integration, of which 6,500 would be in Germany.

The agreement includes the bank's entire German operations. A similar agreement was reached for the bank's Frankfurt headquarters at the end of March.

A Verdi spokesman said the job cut goals agreed upon involve shedding about 3,780 German jobs by the beginning of 2012 and about another 1,080 at the beginning of 2013. By early 2013 a total 4,860 jobs will have been cut, a Verdi spokesman said.

By the end of 2013, Commerzbank will have cut about 5,400 full-time jobs in Germany in net terms under the agreement, the Verdi spokesman said. The figure differs from the 6,500 integration-related job cuts due to some restructuring at the bank which includes bringing back some previously outsourced business, the labor union spokesman said.

Company Web site: www.commerzbank.com; Labor Union Web site: www.verdi.de

-By Ulrike Dauer, Dow Jones Newswires; [phone]; [e-mail]