Bank staff reject pay deal

ONE of the country’s largest unions has voted to reject the new national pay agreement.

Members of the Irish Bank Officials Association (IBOA) voted overwhelmingly in favour of rejecting the second phase of the Sustaining Progress agreement yesterday.

The deal was rejected by 98% of the union’s members, who described the offer of 5.5% over the next 18 months as “paltry”.

The IBOA general secretary Larry Broderick said the rejection highlighted his members’ frustration with the agreement. He said the deal favours public sector workers, while issues such as low pay, working hours and profit-sharing are not addressed.

“In voting to reject the proposed deal, IBOA members were mindful of the record profits made by the banks and exorbitant salaries of senior management while staff incomes are barely keeping pace with inflation.

He said the surge in oil prices will wipe out some of the wage increases workers would get.

“Furthermore, productivity in the financial services sector has increased considerably in recent years and yet staff who are responsible for the increase in profits and productivity are not receiving adequate compensation, especially in comparison to the salaries and bonuses of senior management.”

Mr Broderick said the IBOA’s delegation to the ICTU conference next week would vote according to the massive mandate it had received and would be encouraging other unions, particularly in the private sector, to do likewise. The IBOA is the only union to reject the pay deal so far.