IL&P staff demand pay rises as relations worsen

Union leaders at finance house Irish Life & Permanent tonight warned management to pay agreed wage increases or face the threat of industrial action.

The Unite trade union launched a stinging attack on the board and top bankers claiming its 2,500 IL&P members have no confidence in chairman Gillian Bowler over the handling of an apparent €8bn Anglo-Irish Bank dig-out.

It also accused top bankers of putting thousands of jobs at risk to try and save one of their executive colleagues - outgoing chief executive Denis Casey.

Unite regional organiser Colm Quinlan said he would reserve judgment on Ms Bowler but demanded action to replace Mr Casey.

"To be frank, the sooner he's gone the better," Mr Quinlan said.

IL&P bosses last week initially refused Mr Casey's resignation in a scandal over the payments to its troubled competitor, Anglo- rish Bank in March and September last year.

However, after intense public and private pressure from Finance Minister Brian Lenihan the board made a dramatic u-turn and Mr Casey quit.

In a letter to the Board, Mr Quinlan said: "Last Thursday, the Board of Irish Life and Permanent TSB risked sacrificing the security and tenure of the jobs of thousands of workers in an attempt to support one, the now resigned CEO.

"Unite members and regular bank officials and employees have conducted themselves in exemplary fashion throughout the current financial crisis.

"This statement does not hold true for senior management."

A spokesman for IL&P said management apologised and expressed regret to staff during briefings on the affair but did not explain details of the Anglo payments.

In a reply to the union IL&P said it accepts the affair has damaged its reputation but insisted the Board supported Ms Bowler.

"As has been stated previously, the board has expressed its strong disapproval of and disappointment with some of the specific measures used to support Anglo Irish Bank during 2008 and the fact that the board itself was not informed of the specific manner in which such support had been afforded to Anglo Irish Bank," stated an open letter to the union.

"The board fully appreciates that the events which have now become public have damaged confidence in the group and it appreciates in particular the real disappointment of staff at what has transpired.

"The board wishes to state its full confidence in the chairman and its full support for her at this difficult time. The board believes that it is important for all employees that we don’t allow ourselves to become distracted from the real challenge facing the group at this time."

Three senior executives including Mr Casey have quit IL&P over the controversial and highly irregular €8bn paid into Anglo - more than the Government's recapitalisation of Allied Irish Banks and Bank of Ireland.

IL&P claimed the only motivation behind the money moves was to assist the wider banking sector after a call for support from the Financial Regulator and the Central Bank - a suggestion flatly rejected by the Regulator.

Meanwhile, two Government TDs called for extra gardaí to staff the Office of the Director of Corporate Enforcement (ODCE) in the wake of the banking scandals.

Garda Commissioner Fachtna Murphy wrote to Michael McGrath and Thomas Byrne and said the staffing levels of one Inspector, two Sergeants and five detectives in the (ODCE) could be reviewed if further issues came to light.

"Given the importance of the issues being investigated by the ODCE, I believe that additional gardai should be allocated from the Bureau of Fraud Investigation if the Director of Corporate Enforcement believes this would speed up his investigation," Mr McGrath said.

"I would call on the Director to take up this invitation from the Commissioner to review the level of garda resources at his disposal."

Unite detailed eight complaints to IL&P human resources chief Tony Hession and warned it wants all pay increases due this year to be paid, any redundancies must be voluntary and if management try to push through enforced cuts staff will vote on industrial action.

Unite, which represents half of IL&P's 5,000 workforce, said it was shocked by the dealings with Anglo and extremely disappointed with the board and described the decision to reject Mr Casey's resignation as remarkable.