Financial Services Union ‘concern’ on AIB sale as 5.5% pay deal agreed

The Financial Services Union (FSU) said the proposed sale by the Government of a stake in AIB was a matter of “concern” as the union said it would recommend its members vote to accept an average pay rise of 5.5% over two years at the State-owned lender.

“The prospect of a sale of part of the State’s shareholding in AIB this year is a concern to our members,” said FSU general secretary Larry Broderick.

“The fact that our union has also secured an extension of current job security and redeployment arrangements until the end of 2019 will be an important factor as members decide on the deal.

“Another positive to this deal is the protection of pension entitlements in the DC [defined contribution] pension scheme, particularly at a time when many workers in the private sector are facing the erosion of pension scheme benefits.”

The AIB pay deal means staff will get an average 2.75% pay hike this year and in 2018. It comes as CSO figures published yesterday showed that the consumer price index was flat in 2016.

AIB said it could not disclose at this stage the amount the pay increases would cost the bank.

Earlier this week, the FSU suspended a ballot on a pay offer at Ulster Bank in the Republic amid a row about pay structures.

It had said there was “no justification” for the new pay structures proposed by Ulster Bank, saying that its members had helped the bank restore the payment of dividends to its Royal Bank of Scotland parent.