Amicus and Allianz agree deal over pensions

AMICUS yesterday reached agreement on behalf of its members at Allianz Ireland to the insurance company’s pension arrangements.

The trade union hopes that the outcome could help resolve the pensions dispute at Bank of Ireland.

The Allianz agreement will see the company maintain its existing defined benefits pension scheme for all existing members in employment with the insurer on January 1 next.

New employees after that date will join the existing scheme but with the benefits capped at a pensionable salary of €45,000. Earnings in excess of the salary cap will be funded by a defined contribution fund, with Allianz contributing 10% of the salary.

Amicus national secretary Jerry Shanahan said yesterday that the agreement could show a way forward in the ongoing Bank of Ireland pensions dispute.

Amicus — while not the biggest union representative at BOI — is at the centre of the pensions dispute, with the majority of its 500 members picketing the bank’s head office and New Ireland subsidiary last Wednesday and due to do likewise at its ICS Building Society office in the IFSC next Wednesday.

They are arguing against BOI’s decision to remove its defined benefit scheme for new employees.

Amicus national secretary Jerry Shanahan said: “The open discussions that have taken place with Allianz, where both sides acknowledge the need to be fair while recognising the global financial picture, is a model for how the pensions time bomb can be defused.

“We urge other financial institutions, including Bank of Ireland, to take heed that there is a negotiable path through the pensions issue, and that they should be looking beyond their limited horizon of short term investor expectations.”

With regard to the Bank of Ireland situation, Amicus regional manager, Colm Quinlan, said yesterday that next week’s strike was still likely to go ahead.

“We were very satisfied with last Wednesday’s pickets, which were fully supported. We’ve told the Labour Relations Commission (LRC) that we would row back on our strike action if the bank withdrew its proposals and at all times have continued to stress that we are keeping the lines of communication open,” Mr Quinlan said.

Bank of Ireland chief executive, Brian Goggin said yesterday that it would be “reckless” and “irresponsible” to continue with a defined benefit scheme for new employees as the pension fund at the bank had a deficit of nearly €860 million.