Union: No AIB moves without assurances

The union representing the 171 AIB information technology staff who are to be outsourced to three companies, has insisted no transfers will take place unless clear assurances are given about the workers’ job security.

Management at AIB called the 250 IT staff to meetings yesterday and informed them that, following a review of operations which began in 2013, contracts had been signed to outsource 171 roles to three companies, Wipro, Integrity and Eircom.

It is understood that 135 staff are to be taken on by Wipro. It currently has its base in Shannon, but it is understood it will lease a premises in Dublin city centre and the AIB workers will move to there. A further 32 people are to move to Eircom and four to Integrity.

AIB insisted there will be no compulsory redundancies and that workers’ terms and conditions will be protected by Transfer of Undertakings (TUPE) legislation.

However, Larry Broderick of finance union IBOA which represents most of the IT staff at AIB, said that while TUPE applies, “it is very limited in its application”.

“For example it does not cover banking benefits, pensions. It could arguably not cover off-shoring,” Mr Broderick said. “We have a sense of betrayal at this decision given the commitment of those staff to AIB in the past and the fact that AIB is back in profit.

“We welcome the commitment that there will be no job losses, but we are saying clearly that if staff are going to provide this support outside of AIB — these contracts are for five years — the staff need to have the same commitments and same guarantees as staff in AIB for the next five years.”

He said the union was adamant the transfers will not happen unless job security agreements travel with them.

“That means that if they do transfer across there will be no compulsory redundancy even if in that company they decide to do further change,” he said.

“Secondly if there were to be redundancies the terms that are on offer at the moment with AIB would apply and thirdly there must be voluntary redundancy. Also staff should have the option of redeployment within these other companies if they were deciding to do something with their individual jobs.”

Mr Broderick said there is a feeling of anger, disappointment and betrayal among members. “They are very supportive of the union stance that they are not going to cooperate with change unless there is an agreement in place,” he said.

He said IBOA will be consulting with members in the coming days and further meetings have been arranged over the next 24 hours with AIB, Wipro, Eircom, and Integrity to discuss all aspects of this proposal.

Dara Calleary, Fianna Fáil’s spokesman on jobs, said the announcement came “just 24 hours after the Minister for Finance effectively hung the ‘for sale’ sign outside the door at AIB”.

“When he told us that the bank’s strategy is working he clearly did not have the concerns of IT staff or customers in mind,” he said. “

Outsourcing has not proven to be a silver bullet for banks, in fact a number of UK banks have encountered significant quality issues following outsourcing.”