Bank workers union sees ‘serious issues’ in AIB job cuts plan as talks begin

AIB paused its plan last March due to the Covid outbreak, but announced in December  it would be proceeding in the early part of this year
Bank workers union sees ‘serious issues’ in AIB job cuts plan as talks begin

AIB's three-year restructuring plan is aimed at reducing its workforce by up to 1,500 staff.

AIB and employee representative the Financial Services Union (FSU) have formally begun talks on the bank’s three-year restructuring plan aimed at reducing its workforce by up to 1,500 staff in a bid to meet medium-term capital and profitability targets.

The plan also includes AIB existing its commercial banking operations in the UK. 

AIB paused its plan last March due to the Covid outbreak, but announced in December that it would be proceeding in the early part of this year.

The FSU had called for a postponement until after the Covid crisis, calling the move “ill-timed”.

FSU senior industrial relations officer Billy Barrett, reiterated the preference for post-Covid talks and said the decision to proceed is “disappointing”. 

He said the union expects negotiations to last for some time.

Mr Barrett said there were “serious issues” to be addressed in the talks and said the plan to wind-down most of the UK operations leaves “many unanswered questions”.

He said the viability of the UK operations, the selection process for possible redundancies, and the possible application of transfer of undertaking protection of employment law legislation are issues to be discussed.

“The FSU enters this consultation phase with a clear agenda of minimising job losses, ensuring any proposed redundancies are real redundancies, and that remaining staff are not shouldered with the burden of increased workloads,” Mr Barrett said.

“We will not accept the loss of full-time positions in AIB and have these replaced with precarious contracts,” he said.

The opening of the talks comes against a doom-laden backdrop of downsizing across the Irish banking market. 

An estimated 3,500 jobs are at risk from strategic reviews across all of the major lenders taking in Bank of Ireland, AIB, Permanent TSB, KBC Bank Ireland, and Ulster Bank.

Natwest Group is expected to update on its plans for Ulster Bank in the Republic later this month, with a gradual exit from the market widely expected. 

The FSU received no reassurances when meeting with Ulster Bank CEO Jane Howard last week.

Finance Minister Paschal Donohoe said, this week, that Ulster exiting the market would be "very serious" in terms of jobs, lending, and the overall economy.

Mr Donohoe said he has raised concerns over Ulster Bank’s future in the Republic with Natwest and his UK counterpart Rishi Sunak.

He said Ulster Bank is a very important part of the Irish banking sector, but acknowledged the Government has no formal role in any decision.

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