Fifth Third Bancorp’s Acquisition of Comerica and Its Impact on Employees

• If the deal wraps up by March 31, which seems likely, many workers at Fifth Third could see their minimum wage bumped up to $21 an hour.
• Fifth Third currently employs 2,350 people in Michigan, with 438 based in Metro Detroit.

In the midst of Fifth Third Bancorp’s $10.9 billion all-stock acquisition of Comerica, there’s some news worth noting about jobs.

However, we still don’t have clarity on how many jobs might be at risk in Michigan or elsewhere due to consolidation efforts. This includes the possible closure of overlapping branches for Fifth Third and Comerica.

Interestingly, Comerica Park, home to the Detroit Tigers, might adopt the Fifth Third name in the future. Bank executives mentioned that by late 2026 or early 2027, they plan to rebrand Comerica Park as Fifth Third Bank, along with altering sponsorships and naming rights.

On a local note, Consolidated Bank has expressed its commitment to maintaining its Great Lakes campus in Farmington Hills, which just celebrated a ribbon-cutting ceremony nearly a year ago.

Commitment to Farmington Hills

The 340,000 square-foot campus is the largest corporate office in CoAmerica. Approximately 2,000 employees work here. The FAQ highlights vibrant collaboration spaces fitted with advanced technology and amenities.

The operations center offers services across the country. Comerica employees began moving into this new complex in early 2024, with the full construction wrapped up in July 2024. The operations include commercial lending and various support services.

Minimum Wage Increase for Fifth Third Bank Employees

There’s also some positive news on the wage front. If everything goes as planned and the deal closes by March 31, many Fifth Third employees could see pay raises.

The external FAQ indicates that the new consolidated company intends to raise the minimum wage for Fifth Third employees to $21 an hour, aligning with what Comerica currently offers.

This would mark a $1 hourly increase for employees.

Fifth Third had already raised its minimum wage to $20 an hour as of 2022.

In Michigan, Fifth Third continues to employ 2,350 individuals, with 438 in Metro Detroit. The bank operates 160 branches across Michigan, and 62 are located within the Detroit-Warren-Dearborn area.

In recent years, several large banks have announced hourly wage increases for their frontline workers. Like many companies, they’re grappling with labor shortages and have recognized the need to offer better pay to attract new talent.

In addition, these banks benefited from corporate tax cuts from the 2017 Tax Cuts and Jobs Act, which created some pressure to extend those benefits to their employees.

The current federal minimum wage stands at $7.25 per hour, while Michigan’s minimum wage is $12.48 an hour, set to increase to $13.73 in January. By 2027, it will rise to $15 an hour.

As Mike Townsend from the American Bankers Association noted, banks of all sizes have been increasing wages recently to stay competitive and to provide growth opportunities for their employees.

“Banking is still a solid career option,” he remarked, emphasizing the goal of attracting and retaining skilled professionals.

Salary hikes at large banks have varied over time. For example, Fifth Third raised its minimum wage from $12 to $15 an hour in 2018.

Back in late 2017, Comerica announced plans for a $15 per hour minimum wage, effective January 5, 2018.

By October 2019, Fifth Third upped its minimum from $15 to $18 an hour.

Then, on July 4, 2022, the bank set the minimum wage further at $20 per hour, benefiting nearly 95% of its operational support employees, including those in branches and customer service.

Fifth Third’s CEO, Tim Spence, mentioned that the 2022 raise was “simply the right thing to do,” indicating it would genuinely impact the lives of many employees facing rising living costs.

For many at Fifth Third, reaching a wage of $21 is a positive step, though it’s not necessarily a top-tier minimum wage.

Comparison with Bank of America

In September, Bank of America stated it had fulfilled its commitment to increase its U.S. minimum hourly wage to $25 by 2025.

The planned wage increases, as noted in a September announcement, were set to start in early October. This $25 minimum covers both full-time and part-time positions throughout the U.S.

As for raises, this translates to a $1 increase from the previous $24 minimum set in 2024.

Bank of America has reportedly raised pay from under $15 to $25 over recent years, with starting salaries for full-time employees in the U.S. increasing by more than $20,000 annually since 2017. A minimum wage of $25 would give full-time workers a base annual salary of at least $50,000.