IBOA to consider mediator's recommendation on First Trust Bank job losses

Issued : 18 May 2012

IBOA The Finance Union has noted the recommendation for voluntary severance and early retirement of up to 2,500 more staff in AIB Group proposed by the independent mediator, Mr. Kevin Foley.

IBOA General Secretary, Larry Broderick said that the Mediator's recommendation recognises that any job losses in AIB Group - including First Trust Bank and Allied Irish Bank (GB) should be implemented on a voluntary basis.

The severance terms proposed for First Trust Bank provide for four weeks' pay per year of service including statutory entitlement, or three weeks' pay per year of service plus statutory entitlement, subject to a payment cap of two years' annual salary, including all pensionable elements, or £190,000, whichever is the lesser.

The terms will be available to staff with a minimum of five years' continuous service. A minimum payment, (inclusive of statutory entitlement) of £5,000 will apply to staff availing of voluntary severance.

The mediator has also recommended that the Bank should make provision for outplacement and retraining services for departing staff - about which the parties should engage further in the coming weeks.

An enhanced voluntary early retirement arrangement will also be available for staff aged 50 and over on a pro rata actuarially reduced basis.

"The mediator's recommendation provides a template for change in AIB. But it is only half the story. We are unable to offer a full assessment of its implications for our members in First Trust Bank and AIB (GB) because senior management has yet to share its plans for the future with us in any real detail," said the IBOA leader.

"This is absolutely essential to enable staff to make a fully informed assessment about what is potentially a life-changing decision for each employee.

"So we are seeking an urgent meeting with senior management to discuss its plans for the future - not only in terms of the implications for staff but also the potential impact of service to customers.

"This last week has been quite unprecedented for staff in Irish banking - with Ulster Bank confirming its intention to cut 950 more jobs, Bank of Ireland outlining plans for 1,000 additional job losses, AIB moving ahead with plans for 2,500 job cuts and Danske Bank announcing plans to restructure both the National Irish and Northern Banks. In view of the fact that the State now occupies such a pivotal role in Irish banking, we will also be seeking urgent engagement with the Government in the Republic," said Larry Broderick.