AIB bosses agree to 2.2% average pay rise for staff

The Financial Services Union will ballot its members in AIB on a proposed 2.2% pay rise in the coming weeks.

The pay increase — proposed by the Workplace Relations Commission — will benefit the majority of the bank’s staff and will see increases based on individuals’ performance ranging from 0.9% to 3% for top performers.

The programme has been accepted by AIB’s senior management and the union will now ballot its members within the bank.

The union’s general secretary Larry Broderick said the recommendation followed “long and difficult” negotiations with AIB management and marks “a welcome development”.

“It acknowledges the contribution that staff have made to turning around the bank and the bank’s achievement in profitability and, very importantly, commits the bank to further discussions with the union on new job roles and salary structures for the future,” he added.

The commission recommendation also extends AIB’s existing job security agreement, preventing the bank from engaging in compulsory redundancies when restructuring.

Mr Broderick called this “a very significant development, given the amount of change taking place within the bank as a whole.”

The 100-year-old union yesterday officially changed its name from the Irish Bank Officials’ Union to represent its growing appeal beyond bank employees to include all areas of the financial sector.

At its annual conference in Dublin, yesterday, the union said it had agreed improved pay agreements in most financial institutions this year and urged remaining employers to “step up to the mark” and engage with it to follow suit.