IBOA recommends pay proposals for AIB staff
Issued : 7 August 2015
IBOA’s AIB Executive Committee has decided to recommend pay proposals for AIB staff issued today by independent mediator, Kevin Foley of the Labour Relations Commission, after he had considered representations from the union and the bank’s senior managament.
Mr. Foley has recommended an immediate 2% increase backdated to January 1, 2015 for all AIB employees earning less than €100,000 in the Republic or £80,000 in Northern Irteland and Britain. Mr. Foley has also proposed that negotiations begin on a new performance-based pay structure to be concluded by the end of this year.
In addition, he has recommended that the current agreement between the union and the bank on job security should be extended by a further twelve months until the end of February 2017 – ensuring no compulsory redundancies and underpinning the existing voluntary severance terms secured by IBOA in 2013.
“This recommendation acknowledges our view that the staff in AIB have been absolutely key to the bank’s return to profitability which has been confirmed in the results announced this morning,” said IBOA General Secretary, Larry Broderick.
“Although the immediate increase of 2% increase is modest, it breaks the ice on the pay freeze in AIB and marks a further step in the normalisation of engagement between the union and management on staff’s pay and terms and conditions of employment as the bank’s recovery is consolidated.
“In this respect, Mr Foley’s recommendation for further discussions between IBOA and AIB management on new pay and career structures to be completed by the end of December is significant since it provides us with an opportunity to address the various pay anomalies that have arisen in recent years when many banking operations have been dramatically transformed both in AIB and in its competitors.
“While the recommendation anticipates more restructuring in AIB in future, it offers reassurance to staff that this restructuring will be undertaken with proper engagement with IBOA. If job reductions are required, they will be achieved on a voluntary basis in line with existing agreements.
“Both in terms of pay and job security, the recommendation recognises that AIB staff are key stakeholders – both in terms of their past sacrifices and their future contribution – in ensuring the recovery of the bank in the interests of customers and the public at large,” he concluded.
The ballot of IBOA members in AIB is due to begin on August 17, 2015 and conclude by September 3, 2015.