IBRC staff set to strike over redundancy

Staff at Irish Bank Resolution Corporation could begin industrial action within days unless they are given the redundancy terms which were on offer at the financial institution a little over a year ago.

Action would see the workers withdraw co-operation with the preparations for the disposal of the remaining IBRC loans.

Just over 100 staff, who are members of finance union IBOA, backed action unless they are given four weeks’ pay per year of service.

The workers, many of whom earn less than €30,000 a year according to their union, are set to lose their jobs shortly as the liquidated state company winds down further with the disposal of more loans.

Workers who chose to take redundancy up to 14 months ago received four weeks’ pay per year of service.

However, last February, when the IBRC wind-down was accelerated, the terms were cut to the statutory two weeks’ pay per year of service.

The matter has been in mediation under the auspices of Labour Relations Commission chief executive Kieran Mulvey since last October but, according to IBOA, there has been no progress.

“The employees’ previous redundancy terms, which had been signed off by the Department of Finance at the end of 2011, were withdrawn in an instant when IBRC was liquidated in an all-night sitting of the Oireachtas in February 2013 as part of the Government’s strategy to address the promissory notes issue,” said IBOA general secretary Larry Broderick.

“A consequence of this measure was that the workers were offered only the legal minimum entitlements — worth less than half of the agreed terms.”

He said a concerted lobbying campaign has secured widespread cross-party support from Oireachtas members alarmed at the unintended consequences of the emergency legislation.

“As the wind-down of IBRC continues with more workers close to departure, our members are bracing themselves for one final effort to secure justice involving the withdrawal of co-operation with the disposal of any more IBRC loans,” he said. “IBOA has advised all prospective buyers of IBRC loans that this action is now under active consideration. Unless a breakthrough is imminent within days, we will have no alternative but to pursue industrial action.

He said Mr Mulvey should be given a renewed mandate by the Government to bring the matter to a “fair and honourable conclusion” and Finance Minister Michael Noonan should intervene to support the LRC chief executive’s efforts.