Lombard to cut 100 jobs despite plea

FINANCING firm Lombard Ireland is to cut close to 100 jobs in Ireland despite bankers union the IBOA asking it to consider alternatives to job losses.

The IBOA said its members in Dublin and Belfast are “shocked” by the announcement, especially given that it is so close to Christmas.

Lombard is part of the Royal Bank of Scotland (RBS) group, which also owns Ulster Bank in Ireland.

IBOA general secretary, Larry Broderick said: “In our initial engagement with senior management at Lombard, we have asked the company to consider alternatives to job losses including redeployment and early retirement, to agree that any redundancies deemed necessary will be implemented on a voluntary basis and to extend the deadline for the completion of negotiations and for expressions of interest by staff in voluntary severance.

“While management has outlined terms for voluntary severance, IBOA will not endorse any proposals without consulting our members in Lombard on the various options available.”

RBS said Lombard will no longer deal through broker and intermediary networks and will instead provide asset finance directly to the market.

The company is cutting 84 jobs in the Republic and 24 in Northern Ireland. However it is hoping to offset the losses with 17 new jobs spread between both locations.

Mr Broderick said the announcement is further evidence of the “continuing haemorrhage” in the financial services sector.

He is calling on the minister for enterprise, trade and employment to establishment a task force which would “consider proactive strategies to address this trend”.

“I now urge the minister to act upon this proposal – to bring together the various stake-holders in the sector to developed a strategic approach to the management of the employment consequences of the continuing crisis in banking,” he said.

It is understood that the sharp fall in car sales has had an effect on Lombard’s business. Lombard provided finance at motor dealers for those looking to buy a car.