Union launches legal action against Ulster Bank

Bank employees' union the IBOA today launched a legal action against Ulster Bank in an escalation of the union's row with the bank over staff payments and contracts.

"IBOA, The Finance Union, has today lodged papers with the Rights Commissioner Service in the Irish Republic to commence legal action against the Ulster Bank Group for allegedly making illegal deductions from the wages of its employees," the union said in a statement

"A parallel action is being taken by the union in Northern Ireland, where papers were lodged with the High Court."

The union claims that the bank has withheld payments that are contractually due to staff. It says staff in Britain employed by Ulster Bank’s parent company, RBS, have already received these payments without preconditions.

The IBOA said that although the bank is currently offering to pay one of the payments which the union claims to have been illegally withheld, it will only do so if staff sign up to changed contracts which would reduce their pension benefits and undermine existing terms and conditions.

“We believe that our members are now being asked to make life-changing decisions about their future in order to secure payments which are already theirs by right," said IBOA General Secretary, Larry Broderick.

"Our legal action aims to secure these entitlements – without the necessity for our members to sign away important benefits for the future."