BoI union faces down state over staff cuts

THE union representing thousands of Bank of Ireland staff says its members will stop the bank from getting rid of more than 450 staff here if the Government derails the voluntary severance package on offer.

Last April, as part of an EU restructuring plan, the bank and finance union IBOA agreed to a voluntary severance and early retirement package of six weeks’ pay per year of service, to be on offer for 750 staff. The deal was taken up by 300 staff in the North.

However, before it was accepted by staff south of the border, the Department of Finance ruled the compensation was too much.

Nonetheless, the bank and union went back into negotiations under independent mediator Mark Connaughton.

A revised deal was agreed that would see staff receiving four weeks’ pay per year of service, plus a “retraining grant”, but it has now emerged that the Department of Finance is not willing to let the deal proceed.

According to IBOA general secretary Larry Broderick, the Department of Finance was informed of the terms throughout negotiations. He said his union had been told the banks would not be “micro-managed” by the Government and management would be able to negotiate through industrial relations procedures.

“No feedback came back from the Department of Finance and, in that context, Mr Connaughton issued his recommendation and we communicated to staff last week,” Mr Broderick said.

“In the meantime, I understand the Department sent an email to Bank of Ireland saying they had no authority to enter into negotiation and Bank of Ireland senior management met with the department last week and indicated as far as they were concerned, they had accepted this recommendation and so had we.”

However, late last week Industrial Relations News reported that the department would not allow Bank of Ireland to go beyond the terms of the general voluntary redundancy arrangements being applied in the public service.

“We are not in the public service,” said Mr Broderick. “If we got a public service deal that gave us people being able to go at 50 years of age on early retirement on a pro rata pension, we would not have a problem with that, and if they told us that there would be no compulsory redundancy in the industry as a whole and that they guaranteed their members increments the way public servants have got, we would not have a difficulty.”

Mr Broderick said his union will not go into negotiations again.

“The alternative is that there will be no agreed terms, it is not voluntary and there will be compulsory redundancy and it will be a major difficulty if that arises,” Mr Broderick said.

“We will not stand idly and let them be made compulsorily redundant while the people who caused this have walked away with big pensions and no accountability.

“We do not see further negotiations taking place. Certainly if this deal is being reneged upon, as far as we are concerned there will be no restructuring.”