IBOA welcomes mediator's attempt to resolve outstanding issue for departing IBRC workers

Issued : 25 April 2014

IBOA General Secretary, Larry Broderick, has welcomed the intervention of mediator, Kieran Mulvey, in the long-running issue of severance compensation for workers in IBRC - whicih has been in special liquidation since February last year with a view to winding down completely.

"The mediator's recommendation offers the basis for an acceptable resolution of this matter," said the finance union leader. "In summary, the liquidator has proposed a termination payment to all staff earning less than €120,000 a year - based on their length of service with IBRC or its predecessors, Irish Nationwide Building Society and Anglo Irish Bank

According to Mr. Mulvey's recommendation, workers with less than 2 years' service would receive a termination payment of €2,000 (or its UK equivalent). Workers with 2 to 10 years' service would receive €15,000 (or its UK equivalent) while workers with over 10 years' service would receive €18,000 (or its UK equivalent) as a termination payment.

These amounts would be paid to all staff made compulsorily redundant in addition to their statutory redundancy entitlement in full and final settlement of all outstanding claims against IBRC in liquidation and subject to the withdrawal of any threatened industrial action.

The workers’ previous redundancy terms which had been signed off by the Department of Finance at the end of 2011 were withdrawn at a stroke when IBRC was liquidated in an all-night sitting of the Oireachtas in February 2013 as part of the Government’s strategy to address the promissory notes issue. A consequence of this measure was that the IBRC workers were offered only the legal minimum entitlements – worth less than half of the agreed terms.
A concerted lobbying campaign by IBRC workers garnered widespread cross-party support from Oireachtas members who were alarmed at the unintended consequences of the emergency legislation.

"Our members in IBRC have been gratified by the support they have received from a number of members of the Oireachtas who have helped to ensure that ther campaign was not ignored - especially in light of the recent announcements from the Special Liquidator that around 90% of the IBRC loan book will be sold. The termination payment, therefore, recognises the contribution these workers have made to maintaining these assets at saleable quality for the ultimate benefit of the taxpayer," he said.

The Union's IBRC Committee has decided to recommend the mediator's proposals in a ballot of all IBOA members in IBRC which will get under way as soon as possible.