Bank workers set to reject pay deal

BANK workers' union IBOA is set to reject the latest national pay deal after its executive committee gave it the thumbs-down yesterday.

The Irish Bank Officials' Association said the 5.5% pay increase over 18 months, proposed under Sustaining Progress, fell short of its expectations and criticised the absence of local bargaining provisions that would allow unions in certain sectors to negotiate better deals.

IBOA general secretary Larry Broderick said banks were enjoying record profitability and that the proposed deal failed to reflect the contribution of bank staff on low pay.

"IBOA believes employers, particularly profitable ones, should reward employees with adequate wage increases," said Mr Broderick. "Productivity in the private sector has substantially increased, yet staff are not getting the financial reward they deserve."

The union said the deal was unfair because it allowed employers to plead inability to pay if they were under financial pressure, but there was no mechanism to extract pay rises above the 5.5% mark from employers that could afford to pay more. The IBOA originally wanted a 7% rise.

"Unions should be able to negotiate reasonable increases with employers who are making record profits, yet the people who generate the profits ... are prevented from benefiting through the absence of a local bargaining clause," said Mr Broderick."

"We must be free to negotiate locally with highly profitable organisations."

Yesterday marked the first time the IBOA had rejected a national pay deal. The last major bank strike took place in 1992, when pickets were placed over a three-week period in pursuit of a pay claim.