Bank staff in line for euro windfall

Allied Irish Bank, Ireland’s biggest banking group, is to pay its employees special bonuses and extra overtime for dealing with the changeover to the euro on January 1.

In a move certain to concern other employers, 4,500 AIB staff will get one-off payments of as much as £750 - and a 30% increase in normal overtime rates from December 27 to January 7 while the common European currency takes over from Ireland’s punt.

The move, which is expected to secure ballot approval from members of the Irish Bank Officials Association, the bankers’ trade union, was recommended after an assessment by an industrial tribunal’s special review group.

Negotiations for similar payments have been going on between the IBOA and the country's other big commercial banks, Bank of Ireland, Ulster Bank and the National Irish Bank, and rulings from an industrial tribunal along the same lines as the AIB are anticipated within days.

The euro payments are similar to those at the end of 1999, when there were fears that the Millennium bug would affect financial transactions.

The AIB move ran into instant criticism today from Ireland’s main bosses’ group, the Irish Business and Employers’ Confederation.

Spokesman Brendan McGinty said the development was ‘‘absolutely incredible’’ and claimed the union had been pursuing a sectional interest ’’by seeking to exploit the national effort to effect the smooth transition to the euro’’.

He added: ‘‘All of us have signed up as citizens as part and parcel of our commitment to Europe. Dealing with currencies is part of an on-going change. Other unions have taken a more responsible approach.’’

But the IBOA’s Larry Broderick said the bosses’ organisation was being ’’disingenuous, inconsistent and outrageous’’ on the payments issue.

He declared: ‘‘We pursued this claim because our members felt it is the biggest changeover programme in banking.

’’It was investigated by an independent body and supported by them. It is extraordinary that the recommendation should be castigated by IBEC.’’