Bank of Scotland workers threaten strike

Trade union chiefs threatened strikes over the devastating Bank of Scotland (Ireland) job losses tonight and warned they will fight any other cuts in the sector.

Unite leaders condemned the 750 lay-offs and claimed 10,000 finance workers were determined to resist widescale redundancies.

Bank of Scotland plans to shut its 44 high street branches operating under the Halifax brand from the summer, along with a call centre in Dundalk.

Taoiseach Brian Cowen vowed customers would not be affected by the closures, claiming worried mortgage and account-holders would be looked after.

At an emergency meeting of Unite members and bank workers, regional secretary Jimmy Kelly said frontline staff were being punished even though they did not cause the economic crisis.

“Unite will resist compulsory redundancy in any restructuring proposals brought forward by foreign or Irish-owned financial institutions,” Mr Kelly said.

“Our members will unite to forcibly resist any compulsory redundancy in the context of restructuring.”

Serious concerns were growing among the banking community and finance experts that the massive cutbacks could be repeated among other lenders.

In the Dáil, Mr Cowen came under pressure to reveal when the Government first realised that the bank intended laying off staff and shutting its retail branches.

He said the hundreds of lay-offs reflected Ireland’s economic and banking realities.

The Taoiseach said management notified civil servants on Tuesday, prompting Labour chief Eamon Gilmore to ask if the Government had been asleep on the job.

“In a year when banks and banks and banks are the centre of the political agenda, no minister was talking to this bank, no department was talking to this bank about their intentions,” Mr Gilmore said.

“Was the Government asleep when this bank was considering withdrawing from retail activity and closing its branch measures?”

Fine Gael leader Enda Kenny warned the withdrawal will reduce competition and asked the Taoiseach not to allow the big two lenders, AIB and Bank of Ireland, to dominate the market.

“Bank of Scotland leave, they take with them competition and choice,” Mr Kenny said.

“Taoiseach, we can’t have a return to the old days of the cosy cartel that operated between Bank of Ireland and AIB.”

Industry experts suggested Bank of Scotland (Ireland) would be an invaluable component if it joined forces with Permanent TSB, the EBS and Irish Nationwide - a third banking force offering an alternative to Bank of Ireland and Allied Irish Banks.

Mr Kelly said that over the last year the union had engaged closely with bosses in Irish Life, Permanent TSB and EBS Building Society where formal agreements were signed protecting jobs.

A Bank of Scotland (Ireland) business review found that the Halifax operation was too small to survive and would not break even in a realistic timeframe.

The brand has had a presence on Ireland’s high streets for only four years.

The emergency Unite meeting included representatives from Irish Life and Permanent TSB, EBS Building Society, Bank of Ireland, Allied Irish Bank, and ICS Building Society.

The union’s 5,000 members are supported by another 5,000 from across the financial services sector in the fight against the cutbacks.

Mr Kelly said: “Our representatives ... confirmed the concerns which they have long expressed to management over reckless lending.

“That this went unheeded and that a shadow now hangs over the long-term stability of the banking sector is criminal, yet it is only the workers that are being made to pay the penalty.”

Bank of Scotland (Ireland), which is owned by Lloyds Banking Group, said the Halifax branches and customer call centre will begin closing on a phased basis from May.

No lay-offs are planned to take place within the next three months.