Voluntary parting proposals pave way for 1,000 more job losses at Bank of Ireland
Issued : 18 May 2012
Negotiations have concluded between Bank of Ireland senior management and IBOA The Finance Union on proposals for voluntary severance of up to 1,000 more staff in Bank of Ireland, according to IBOA General Secretary, Larry Broderick.
The proposals provide for voluntary severance terms of three weeks' pay per year of service plus statutory entitlements - subject to a cap of two years' salary or €225,000 (or sterling equivalent), whichever is the lesser amount. Staff with mote than two years' service will receive a minimum payment of €10,000 (or sterling equivalent).
An early retirement option will allow staff who are within five years of Optional Early Retirement (OER) or normal retirement date under existing pension rules to leave the Bank. This option will allow these staff to avail of an arrangement which will provide 70% of the redundancy terms and 50% of salary for a maximum of 3 years.
Departing staff will also be able to avail of a training grant worth up to €5,000 (or sterling equivalent) vouched.
The terms have been endorsed by the Republic's Department of Finance.
"While it is extremely disappointing that over 1,000 more employees are likely to leave Bank of Ireland in the months ahead, the Union welcomes the fact these departures will take place on a voluntary basis and that the pay, terms and conditions of remaining staff have been guaranteed by the Bank," said the IBOA leader.
"After due consideration, IBOA's Bank of Ireland Executive Committee is recommending these proposals for acceptance in the ballot of members beginning next week, on the basis that they are the best that can be achieved in all the circumstances."
"These proposals for further job losses at Bank of Ireland coming on top of 950 job cuts scheduled for Ulster Bank and up to 2,500 in AIB Group underline IBOA's call for a comprehensive Government strategy to address the continuing haemorrhage of jobs throughout the Irish financial services sector.
"The task now for senior management in Bank of Ireland is to engage fully with staff as key stakeholders to promote the restoration of the Bank to full financial health."