AIB to begin redundancy process

AIB has accepted the recommendations made by the Labour Relations Commission and is set to start taking applications for early retirement tomorrow.

In an email sent to AIB staff, chief executive David Duffy said he understood that it was an emotional day for many staff members but that redundancies had to be achieved through early retirement to ensure the future of the bank.

“I fully appreciate that this is a very significant day in AIB’s history and an emotional one for many of you. Unfortunately, it is a step we have to take to return the bank to viability,” he said.

Mr Duffy said that AIB will attempt to facilitate staff requests to leave the bank as much as possible but the final decision will be up to the bank as who is accepted into the redundancy schemes.

AIB is currently seeking to reduce its staff by 2,500 and has accepted the recommendations made by the director of conciliation at the Labour Relations Commission, Kevin Foley. Mr Foley recommended that the bank offer four weeks’ of pay per year of service, including statutory entitlement, or three weeks’ pay per year of service plus statutory entitlement, subject to a payment cap of two years’ annual salary.

The general secretary of the IBOA Larry Broderick welcomed AIB’s decision to accept the recommendations of the Labour Relations Commission, but he said there was still a lot of details to be ironed out both for staff who choose to leave and those hoping to stay with the bank.

“We’ll be meeting with bank officials and trying to flesh out what this means. Those who want to leave need to be accommodated but under the Foley recommendation there is no plan. There is no detail of the plan for who is going to leave which will raise issues of customer service,” said Mr Broderick.

Mr Duffy acknowledged that there was still a lot of uncertainty for employees considering remaining with the bank . “I know many of you would also like to have more detail on the review of pay and benefits which is part of the wider imperative to reduce staff costs. This review will be completed and information communicated to you before the application processes close.”


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