IBOA members in AIB back pay terms

Issued : 8 September 2015

Workers in AIB Group have voted to accept proposals for a 2% increase in basic pay backdated to January 1, and for further talks on new salary ranges to be concluded before the end of 2015 with a view to their introduction from the beginning of next year.

The proposals had been brokered by independent mediator, Kevin Foley of the Republic’s Labour Relations Commission after intensive negotiations between IBOA The Finance Union and AIB Group’s senior management.

Under the deal proposed by Mr. Foley, the 2% increase is to be paid to any employees earning up to €100,000 or £80,000 a year – the first increase in basic pay since 2009 for the vast majority of AIB staff.

He also recommended that the Bank’s management and Union negotiate new pay ranges before the end of this year for implementation from January 1, 2016 – with a further pay review due in April 2016.

Union General Secretary, Larry Broderick, has welcomed the positive response to the proposals which had been endorsed by the Union’s AIB Executive Committee.

“The mediator’s recommendation offers a balanced approach to the issue of reward in AIB by providing for an immediate improvement in pay alongside a framework for new talks which will enable us to address a number of anomalies that have arisen over the last six years.

“As a result of the pay freeze since 2009, remuneration arrangements in AIB have failed to keep pace with the significant change arising from restructuring and technological advances.

“Anomalies – which give rise to perceptions of unfairness – can undermine employee morale within the institution while a failure to match broad trends in the sector as a whole can lead to the loss of talent and expertise at a crucial period in the consolidation of the bank’s recovery.

“The new round of talks which are due for completion by the end of this year will provide an important opportunity to rectify the internal anomalies and boost the morale of staff in AIB,” said the IBOA leader.

The mediator also proposed that an existing agreement between IBOA and AIB which protects Union members against compulsory redundancies should be extended by a further year until the end of February 2016.