Bank officials face question over staff's job fears

An Oireachtas Committee has summoned Bank of Ireland executives to appear before it after it heard today that lack of information on a cost-cutting plan had made up to 12,000 staff fear for their jobs.

BoI announced 2,100 redundancies last month but bank officials today claimed the firm had still not given specific details about which staff would be culled or which branches would close.

IBOA general secretary Larry Broderick said: “This has led to increased fear and loss of morale among staff who await daily in trepidation to be told by management that their job is gone.”

Mr Broderick called on the Oireachtas Committee to support the interests of staff and customers and said the cuts had a generally negative impact on the national economy and “made a mockery of social partnership.”

Finance and Public Service Committee chairman Sean Fleming said: “I’ll make an offer to Bank of Ireland that if they want to come in, we’re happy to meet them. It’s up to them. If they don’t, it’s their call.”

Fine Gael finance spokesman Richard Bruton said a lack of negotiation and consultation with unions may be bad industrial relations practice, but Bank of Ireland was taking inevitable steps to adapt to increased competition from new entrants into the market.

Mr Broderick said: “To have a business plan and not sit down and discuss it with staff is bad decision-making.

Ireland must look after more than just their institutional investors, but also their staff, customers and the wider community that it makes its massive profits from.”

Labour’s finance spokesperson Joan Burton wondered if the cost-cutting was a prelude to a sell-off of the group.

“Is the bank going on a crash diet to slim itself down to sell itself off?”

Bank of Ireland’s chief executive, Brian Goggin told RTE last month that the cost-cutting plan was about building a better bank for both its staff and its customers.

Mr Goggin also said that compulsory redundancies could not be ruled out as part of the plans.

Up to 10 of the bank’s 291 branches could close and operations at the bank’s 22 call centres in Ireland and the UK could be significantly reduced.

Bank of Ireland has nearly 12,000 employees in Ireland and a further 6,000 in the UK.