BoI employees reject pension scheme changes

Employees have rejected proposals by the Bank of Ireland to change the existing pension scheme for all new staff, it emerged tonight.

Members of IBOA The Finance Union voted to reject the scheme, claiming it was convoluted and would leave thousands of new employees in relative poverty upon retirement.

The Bank of Ireland had proposed to change their existing Defined Benefit Pensions for new staff from October 1.

But according to IBOA General Secretary Larry Broderick, the move clearly infuriated staff who voted in record numbers to reject the bank’s proposals.

“Staff cannot comprehend how a bank that reports profits in excess of €1.5bn and has no problem paying extremely generous pensions to current and former senior executives would even consider such a draconian cost-cutting move,” he said.

“The bank’s proposals fly in the face of national policy and good corporate responsibility. In effect the bank is passing responsibility for the provision of decent staff pensions from one of the most profitable companies in Europe to the Irish taxpayer.”

Mr Broderick said the creation of a two-tier pension scheme for staff doing the same job will clearly not work and blatantly discriminates against vulnerable young employees who are finding it difficult to manage and plan for their future with increasing inflation and interest rates.

“IBOA believe the bank should give serious consideration to the genuine concerns of their staff who clearly do not wish to have their pensions downgraded, leaving thousands of young staff living in fear of poverty upon their retirement and dependant on the state pension,” he added.

“The bank’s proposals effectively slash staff pensions to maximise the return to institutional investors.

“In a society that is concerned about future pension provision and care for people upon their retirement, this is not acceptable behaviour by one of our largest and most profitable employers and sends an appalling message as to where Bank of Ireland’s priorities lie.”

The IBOA is calling on the Bank of Ireland to defer the implementation of their proposal, if not the union will refer the matter to the Labour Relations Commission for conciliation.