Union ‘would resist redundancy caps’

THE union representing bank workers has said it is unaware of any attempt to drive through reduced redundancy terms for anyone losing their job as part of cuts at the three nationalised banks.

The Irish Bank Officials’ Association (IBOA) also said it would not co-operate with any plan to cap redundancy payments at three weeks per year of service plus statutory entitlements — half the current industry norm of six weeks per year.

The move follows a meeting last week at which it is understood the Department of Finance told AIB, Anglo and Irish Life & Permanent of the proposed cap.

But IBOA spokesman Larry Broderick said any such plan would be unworkable and he had not been contacted by any bank making such a proposal.

The IBOA has been dealing with AIB over the bank’s plan to cut staff numbers by 2,000, and Mr Broderick said: “No one has confirmed that there is a cap. If it was a fact AIB would have written to me.”

He said any redundancy scheme would need attractive terms for it to work and said of any move to limit redundancy terms.

“They will not be able to force it through.”

Mr Broderick was reported yesterday to have expressed “shock” that his union had not been informed of the meeting between the department and representatives of AIB, Anglo and Irish Life & Permanent.

Yesterday he said it could be “bravado” on the part of the Government and that there may be “an element of spinning going on” in the media in a bid to dampen the expectations of bank workers who may be lined up for redundancy.

He added that no one at the Department of Finance had confirmed redundancy payments would be slashed.