Ulster Bank accepts advice on downsizing

Ulster Bank has accepted provisional recommendations regarding how it goes about downsizing its operations and reducing headcount.

The bank — which returned to profitability last week and whose future ownership structure is the subject of much speculation — also said yesterday that it expects to begin talks on pay with staff members, covering the next two years, “shortly”.

Ulster has been in negotiations with its staff’s main union representative, the IBOA, since March regarding workers’ conditions during the restructuring of the bank over the coming years.

Parent group, RBS’ strategic review of Ulster Bank has already resulted in announced plans to close 15 branches across Ireland before the end of this year. The plan is to lower the branch network to a maximum of 175 outlets (down to 199 this year) and reduce staff size from 5,600 to between 4,000 and 4,500.

Recommendations from the independent mediator of the talks, Mark Connaughton SC, published yesterday, said future job reductions at Ulster Bank should be based on a volunteer-led process, involving voluntary redundancies and early retirements and should also focus on facilitating the redeployment of staff to alternative roles, “as far as possible”.

The IBOA cautiously welcomed yesterday’s recommendations, saying they bring the engagement with Ulster Bank to “a new level”.

IBOA general secretary Larry Broderick added: “While a number of elements contained in the previous restructuring arrangements have been reaffirmed in the mediator’s recommendations, they also envisage some changes which require further clarification with both the mediator and with management.”

For its part, Ulster Bank said the agreement “will provide assurance to our staff, changes will be facilitated on a volunteer-led basis, where possible, recognising that these will happen over a period of time and reflects our commitment to being a good employer.”

Ulster will pay — in terms of redundancy — four weeks pay per year of service, inclusive of statutory entitlements and subject to a cap of 104 weeks and £300,000. It is also providing a training grant of up to €2,500 to departing staff. A limited early retirement scheme, available for up to 40 staff aged over 55, who are at risk of redundancy, will also be provided.