IBRC workers vote to accept mediator's recommendation on termination payment

Issued : 30 April 2014

IBOA members in IBRC have voted to accept the recommendation from the independent mediator, Kieran Mulvey, on termination payments for the staff who have contributed to the success of the liquidation process. The Union will now meet the mediator and the special liquidator to arrange for the payments to be made.

"The mediator's patient efforts to resolve this difficult situation has been appreciated by our members who have backed the recommendation," said IBOA General Secretary, Larry Broderick. "Having secured the goodwill of all of the parties involved - including the Department of Finance and the Special Liquidator - Mr. Mulvey has achieved a resolution which provides some measure of compensation for this group of workers whose limited employment prospects were even more severely curtailed when the Oireachtas decided to accelerate the wind-down of IBRC in order to address the promissory notes issue early last year.

"Despite this rather difficult start, the liquidation process has exceeded expectations in terms of the likely return to the taxpayer. This success has been due in some measure to the diligence and care with which the IBRC staff have maintained the assets to be liquidated. It is appropriate, therefore, that their contribution has been recognised in the form of the termination payment – which will go some way to offset the negation of the previously agreed redundancy arrangements as a result of IBRC being placed in special liquidation by the Oireachtas."

"As well as thanking all of the principals involved in achieving this settlement, I also want to acknowledge the cross-party support for our members' campaign for justice over the last year. Deputies and Senators from all sides of Leinster House - as well as political representatives in Northern Ireland - have helped to highlight the necessity for the plight of the IBRC workers to be addressed.

"Some questions remain to be resolved with the mediator – including the arrangements for the distribution of the payments. We hope to expedite these matters so that the payments can be made as quickly as possible.

The liquidator has proposed a termination payment for all staff earning up to €120,000 a year - based on their length of service with IBRC or its predecessors, Irish Nationwide Building Society and Anglo Irish Bank. Mr. Mulvey has recommended that 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 termination payments are to 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 - leaving the workers with just their statutory entitlements – worth less than half of the agreed terms. Many Oireachtas members subsequently became alarmed at the unintended consequences of the emergency legislation when they were contacted by IBRC workers as part of a concerted lobbying campaign organised by IBOA.