Up to 750 more jobs at risk under Bank of Ireland restructuring

Issued : 16 July 2010

IBOA General Secretary, Larry Broderick, said today that although the EU Commission's endorsement of the Bank of Ireland's restructuring plan has been generally welcomed, the plan makes provision for up to 750 additional job losses over a two-year period.

"Against this disturbing backdrop, it is timely that the independent mediator, Mr. Mark Connaughton, SC, has recommended that any job reductions in Bank of Ireland should be implemented on a voluntary basis and in line with existing agreements between IBOA and the Bank on terms for voluntary severance," said the IBOA leader.

Mr. Connaughton is the independent third party agreed by IBOA and the Bank to facilitate lengthy negotiations between the parties on a number of major issues including job security, pay and pensions.

Mr. Broderick added that staff in Bank of Ireland are being asked to pay a high price for the mismanagement of the Bank in the form of substantial job losses, changes to pension benefits and restrictions on pay.

"IBOA will be scrutinising any specific proposals for job reductions with a view to securing alternative arrangements wherever possible," he said.

"It is incumbent on senior management to learn the lessons from past mistakes in order to bring about a fundamental change in the culture that has operated in Bank of Ireland and brought it to the brink of collapse.

"While the prospects for Bank of Ireland look better now than they have for some time, this will be a false dawn unless there is a restoration of traditional banking values such as prudence and integrity - which underpins an approach to customers which places a premium on consistent service rather than short-term profit."

The IBOA's Bank of Ireland Executive Committee will meet next week to review the EU Commission report together with the mediator's recommendation - in preparation for further engagement with the Bank's senior management.