IBOA seeks urgent talks with AIB and Government on bank restructuring plan

Issued : 10 March 2011

IBOA General Secretary, Larry Broderick, is seeking an urgent meeting with the new Minister for Finance, Michael Noonan, and with AIB’s Executive Chairman, David Hodgkinson, following reports that the Bank’s senior management has formulated a restructuring plan for the banking group.

“IBOA has learnt that the Executive Chairman has issued an internal communication to AIB employees in which he indicates that a plan for the restructuring of AIB Group has been submitted to AIB’s Board and to the Department of Finance for their consideration. This announcement comes as a surprise to both the staff and to the Union since at no stage in our recent engagement with the Bank has there been any indication that the plan was at such an advanced stage.

“The Union has been involved in preliminary discussions with the Bank under the auspices of two respected mediators – Mr. Mark Connuaghton, SC, in the Republic  and Mr. Liam Deane, in Northern Ireland and Great Britain. But at no time were either we or the mediators made aware that the Bank was about to submit a comprehensive restructuring plan to the Board and to  the Government.

“In view of the far-reaching implications of any restructuring programme for our members throughout AIB, we are seeking an urgent meeting with the new Minister for Finance and with AIB’s Executive Chairman.

“Like any employer in Ireland, the Bank is legally obliged to consult with employee representatives where collective redundancies are being proposed in order to allow alternative measures to be considered. IBOA is determined to ensure that our members’ concerns are fully articulated in negotiations with the Bank and in discussion with the Minister, who now acts as the de facto owner of AIB on behalf of the Irish State.”