AIB pay issues referred to Labour Relations Commission for mediation

Issued : 10 June 2015

The issues at the heart of the protracted negotiations on pay and remuneration in AIB Group have been referred to an independent mediator – Kevin Foley of the Labour Relations Commission in Dublin.

The referral follows deadlock in the direct talks between IBOA The Finance Union and the Bank’s senior management.

“While the negotiations between the parties have been conducted in a constructive fashion, we have been unable to reach agreement because of genuinely held differences on each side,” said IBOA General Secretary, Larry Broderick.

“From our perspective, we believe it is time for an increase in remuneration after a pay freeze lasting over six years – especially since this has been a period of major restructuring within AIB involving a substantial reorganisation of the business and significant job losses. We also believe it is time in order to ensure that AIB continues to attract and retain able staff in future. All of AIB’s competitors in retail banking in Ireland have recently improved staff salaries.

“In some cases these competitors have engaged in a major overhaul of grades and pay structures as part of this exercise in order to ensure that these keep pace with the significant developments that have occurred in terms of new work roles in response to changes in branch banking, the roll-out of electronic banking services and the new regulatory environment.

“At the same time, with an effective pay freeze lasting six years, a number of anomalies have arisen which must also be addressed in the course of the current pay review.

“We have engaged in an extensive survey of our members in AIB – which has serve to highlight these issues and inform the representations we have made to the employer.

“The Bank’s senior management team has recognised that staff in AIB not only deserve an improvement in pay on the basis of their past contribution to the recovery of the Bank – but also from the perspective of ensuring that they are to be well-motivated to continue to contribute to the success of the Bank in the future.

“However, so far we have been unable to agree as to how to quantify that improvement as well as address the other issues I have mentioned. Nevertheless, we hope that Kevin Foley of the Labour Relations Commission will be able to work through the very complex set of issues involved in this process,” said the IBOA leader