Workers to challenge Ulster Bank business plan

ULSTER Bank workers are to engage a firm of independent consultants to challenge the bank’s business plan, which involves the loss of 950 jobs and a major restructuring of its operations in both the Republic and the North.

The Irish Bank Officials’ Association (IBOA), which represents almost 6,000 of the bank’s employees on the island, called on Ulster Bank’s management to revisit the reform programme announced on Thursday in order to preserve the maximum number of jobs.

Under the controversial plans Ulster Bank, which is owned by Royal Bank of Scotland, has sought to reduce its staff numbers by 600 in the Republic and 350 in the North as part of a €70m cost-cutting programme.

IBOA representatives yesterday met with Ulster Bank’s senior management including the bank’s chief executive, Jim Brown, to discuss terms of its voluntary redundancy proposals.

The IBOA has sought similar terms to a previous round of voluntary redundancies in 2009 when departing staff were offered an average of seven weeks’ pay plus the statutory two week’s pay, following mediation by the Labour Relations Commission.

However, it is understood that Ulster Bank is claiming it does not have the resources to provide a similar level of redundancy.

Following the meeting, IBOA general secretary Larry Broderick acknowledged that the bank was facing major difficulties as a result of its impaired loan book authorised by senior management during the property boom. However, he claimed the proposed restructuring plan was not in the long-term interests of the bank, its customers and staff.

Both sides are due to meet again next week, while the IBOA is also to seek a meeting with the Government to discuss the ongoing crisis in Irish banking.