Permanent TSB top-up payments to 100 staff 'very hard to stomach', says Unite

Permanent TSB has confirmed that it has topped up a number of staff members’ salaries in a bid to retain their services but denied that the increases constitute employee bonuses.

The bank has increased the pay of approximately 100 staff in what it refers to as “very limited circumstances” where the employee had indicated that they were planning to leave the bank.

In these cases, the staff members were being paid salaries below the market level and received increases in the order of 10% to bring their salaries in line with those on offer elsewhere.

Many of these staff were at the lower end of the pay scale, a spokesperson for PTSB said.

The spokesperson was unable to confirm whether further hikes would be approved, saying the decision to award the salary increases was “a tactic and not a policy”.

The payments have been heavily criticised by Unite which represents approximately 1,200 staff at the bailed-out bank.

The union accused the bank of contradicting itself after it refused to comply with the Labour Court’s ruling that PTSB staff were entitled to incremental pay increases but separately rubber-stamped pay rises for the 100 or so staff members.

An Employment Appeals Tribunal decision on the incremental pay increases which would affect hundreds of staff is believed to be imminent.

Unite claims the bank refused to honour the incremental salary increases which were provided for in employees’ contracts after claiming that it was “on its knees” and needed the cost savings.

The subsequent decision to top-up other staff members’ salaries contradicts this position, according to Unite regional co-ordinator Richie Browne.

“It’s very hard to stomach,” said Mr Browne. “The incremental pay increases that were contractually provided for were dishonoured but at the same time if they deem you to be important enough then they can award pay increases.

“Whether they’re bonuses or increases doesn’t really matter.”

The PTSB row comes after similar issues at both the Central Bank and National Treasury Management Agency recently.

Central Bank governor Philip Lane was dealt a blow just a week into his tenure when Unite members overwhelming endorsed a motion of no confidence in the bank’s senior management after two separate “retention payment” schemes came to light in recent weeks.

As part of its latest scheme, 29 employees have received top-up payments worth more than 20% of their salary.

In total, more than €230,000 has been paid out under both schemes.

The NTMA confirmed last week that it had paid four staff members retention payments totalling €170,000 this year.