Union demands to know plans for building societies

THE Government has been urged to announce its plans for a number of building societies amid fears its recapitalisation of the banks might undermine their position in the financial sector.

Unite trade union said the Government must act swiftly in announcing its plans for Irish Life and Permanent, EBS Building Society and Irish Nationwide, the three institutions protected under Government guarantee, but who have yet to be included in announcements on recapitalisation or other measures.

Unite represents 3,500 workers at Irish Life and Permanent and EBS Building Society, while Nationwide is non-unionised.

“Having different rules for Bank of Ireland, AIB and the other three institutions sends an uncertain message to the markets at a time of continued crisis in the banking sector,” said Unite regional organiser Colm Quinlan. “The minister for finance needs to clarify the Government position with regards to the others. In the absence of such clarity, they are very exposed.

“Lack of a clear message could impact very quickly on the markets and the institutions’ ability to access funds. This in turn could lead to thousands of jobs being placed at risk within days.”

He said the union had “vigorously stated” its case to Government and was shocked that they have still chosen a route which leaves Irish Life and Permanent, EBS Building Society and Nationwide “out in the cold”.