Huge bonuses for BoSI workers

HUNDREDS of Bank of Scotland Ireland (BoSI) workers affected by the firm’s Irish wind down are set to receive massive bonus payments.

Trade union representatives have confirmed employees will be given a basic wage rise worth 2.5% and a “retention” bonus of up to 50% of their salary, if they agree to transfer to independent service firm Certus.

The new group was set up by BoSI to take over the management of the bank’s €32 billion loan book here.

In addition, a voluntary severance offer equalling almost three years’ salary has also been offered to workers as part of the deal, while a commitment to no compulsory redundancies until 2013 has been agreed.

The terms, revealed by the Industrial Relations News journal, are still subject to the cross-border merger being allowed by the courts. However, should this take place as expected, the deal is expected to be signed by BoSI, Certus and balloted on by the Unite trade union before being registered with the Labour Court.

As part of the deal, which has been confirmed by both sides of the negotiations process, BoSI workers transferring to Certus will be given “a base level increase of 2.5%” from May 1 next year.

They will also “be eligible to participate in a retention bonus scheme”, while a bonus worth up to 50% of existing 2010 salaries will be paid “if a colleague meets or achieves a higher performance standard in the mid-year and end-of-year performance reviews during 2011 and 2012”.

The retention bonus will be paid in four instalments in August 2011, February 2012, August 2012 and February 2013.

A €2,000 extra sum will be handed over to eligible workers as an advance next month, deducted from the August 2011 payment.

The funding for these payments will be provided by BoSI management, which is 84% owned by the British government.

Despite both Ireland the other parts of the EU struggling to overcome severe financial problems, outgoing BoSI workers will also be given guarantees they will not be made redundant by Certus until at least 2013.

A number of early retirement schemes will also be made available.

The employees’ existing pension arrangements will remain in place until the closure of BoSI at the end of this month.

Defined benefit pension holders within this group will also be “required to participate in a defined contribution pension scheme” where workers may put 5-8% of their income towards the scheme.

Certus employers will provide three times this contribution.

BoSI and the Unite trade union have confirmed terms of the deal, with a Unite spokesperson saying the “story is fact as reported”.