Union still has bonus concerns

Worker representatives at Ulster Bank say they have noted the decision by the head of the bank’s parent company, RBS, to waive his £1 million (€1.2m) bonus — but say they remain concerned about the “reward structure” for top management there.

Ulster Bank wants to get rid of 950 staff, 600 in the Republic and the rest in the North, before the end of the year, while RBS is seeking 3,500 job cuts in Britain.

There was uproar last Friday when it emerged that RBS chief executive Stephen Hester was to receive an annual bonus worth almost £1m, on top of a basic salary of £1.2m.

It was not until Sunday night that Mr Hester announced he would not be taking the bonus.

IBOA which represents the workers at Ulster Bank said it remained concerned about a reward structure “which offers extremely generous benefits to those at the top of RBS”.

It said this was in sharp contrast to the treatment meted out to ordinary staff.

Meanwhile, negotiations between Ulster Bank and IBOA on the bank’s proposals are continuing.

The union said it had sought detailed explanations of the rationale for the cuts as well as their potential impact in each area.

It said it had also sought further information on the bank’s business plan to enable IBOA’s financial advisers to scrutinise the key assumptions behind it.

IBOA general secretary Larry Broderick said the negotiations were also about the effect of the proposed changes on the staff who remain with the bank.

“Only when all of these issues have been fully clarified would it be possible for our members to come to a judgment on the bank’s proposals,” he said.