Permanent TSB and unions differ over job cut numbers
The bank claims that it is reducing its employee numbers by “approximately 280 people” through a voluntary-led redundancy programme over the coming months. It says a further 100 people are to be redeployed to take up new roles in the bank’s online and telephone banking operation, Open 24.
However, Unite trade union, which represents 1,200 of the total 1,850 employed by Permanent TSB, says it has been told by the bank that it is looking for 360 voluntary redundancies.
Permanent TSB has already cut 400 jobs in the last two years. It claims its latest purge will result in no branch closures but will see an increased use of automation throughout its operations.
The bank’s chief executive David Guinane said the job cuts, along with a 1% interest rate increase on the standard variable mortgage rate, were a major part of the bank’s plans to return the company to profitability.
“We have set out a roadmap for the recovery of the bank, and while that impacts on both customers and staff, it is key to the ultimate recovery and success of the bank,” he said.
“We’re entering a new period for banking in Ireland and we have to ensure that Permanent TSB bank is correctly sized and has the correct margins for the market conditions we are operating in at present.”
Unite trade union said 360 people were being forced to pay for the reckless mismanagement of the bank in recent years.
The union’s regional co-ordinator, Walter Cullen, said Permanent TSB was mismanaged “on an epic scale” under previous senior management who had been able to sail away with fat pensions and severance packages.
“This is a dark day for staff who will also be dealing, as they have in the past, with the pain and anger of customers affected by the mortgage rate increases announced yesterday,” he said.
“Unite will engage with management next week to ensure that all the job losses are on a voluntary basis and that the best possible terms are offered to those who leave.”
