IBOA members in AIB vote to accept IT outsourcing proposals

Issued : 18 August 2015

Members of the Finance Union, IBOA, working in the Application & Development Management (ADM) teams in AIB’s IT Division, have voted to accept outsourcing proposals which will see approximately 120 and 100 employees respectively transfer to technology service providers, Infosys and Wipro.

As a result of negotiations between the Union and the managements of AIB, Infosys and Wipro, the workers will enjoy enhanced protection of the terms and conditions of employment on top of the legal minima required under the Transfer of Undertakings regulations.

“In contrast to outsourcing arrangements in some other employments,” said IBOA General Secretary, Larry Broderick, “a key feature of these transfers will be enhanced job security for workers involved as well as protection for the pension entitlements achieved during their current employment with AIB.

“During the course of the negotiations with management representatives from AIB and the two service providers, the Union managed to secure commitments to address the concerns of a substantial majority of the workers involved.

“The transferring workers will also be entitled to the pay increase for AIB staff proposed recently by the independent mediator, Kevin Foley, if his recommendation is accepted by IBOA members in AIB in the ballot which is currently under way.

“While the Union has strategic concerns about the trend to outsource what we consider to be core operational assets in banking, these concerns have not been shared by the Government or the regulator despite our representations,” explained the IBOA leader. “So, once it became clear that this development would proceed, we have attempted to secure the best possible outcome for our members – both those in scope to transfer to new employments and those who would remain in AIB’s ADM area.

“These transfers are the latest in a growing trend within banking in Ireland – which is following developments in some other countries – to outsource work on various IT-based banking processes to third-party service providers.

“The emergence of these specialist service providers has become a significant feature in the landscape of the wider financial services sector in Ireland. So IBOA has taken steps to secure agreements with many of these new employers in order to provide continuing representation to our members on transfer. Our members in ADM who are due to transfer to Wipro will now join members from AIB’s IT Hosting and Storage department who agreed to transfer to Wipro earlier this year,” Mr. Broderick added.

Meanwhile, IBOA members throughout AIB Group have begun balloting on proposals on pay for 2015, future pay and job security, recently recommended by independent mediator, Kevin Foley. The ballot will close on Friday September 4.