Ulster Bank redundancies

A mediator has recommended that the proposed 950 redundancies at Ulster Bank be voluntary and that departing staff be given four weeks’ pay per year of service inclusive of statutory.

The mediator, Martin King of Ampersand, says the redundancy terms should be capped at 104 weeks’ pay and that a €2,500 vouched training grant should be available to those staff who choose to leave.

According to Industrial Relations News, which obtained a copy of the mediation, Mr King also recommends an early retirement package with an actuarially reduced pension for up to 50 “at risk” staff, aged 55 or above, with an additional payment of 1.25 weeks’ pay for each year of service (with no cap) as well as access to the vouched training grant.

Larry Broderick, general secretary of finance trade union IBOA, said his union was considering the recommendation and awaiting the bank’s response, after which it would make a recommendation to their members.

The union leaders will be pleased the recommendation makes no mention of compulsory redundancies or pay cuts and that the redundancy amount exceeds the 3.5 weeks per year of service offered by the bank.

Meanwhile, Mr Broderick has described as “extremely difficult” the negotiations between his union and AIB on the terms for up to 2,500 departures from that financial institution.

It is believed that the Government’s involvement in determining the terms on offer to departing staff is proving a significant stumbling block.