IBOA: AIB bonuses not shared by ordinary bank staff

The Irish Bank Officials Association has said that frontline bank staff are not getting any of the €40m in bonuses issued to AIB executives.

IBOA General Secretary, Larry Broderick, said: "An impression has been created in the minds of many members of the general public that ordinary bank officials in AIB have shared in a massive bonus bonanza."

Mr Broderick said that branch staff throughout Ireland are bearing the brunt of "further unjustified abuse and demeaning comments from various quarters".

He said the decision of AIB Group to pay bonuses earned in 2008 to certain specialist staff in its Capital Markets Division followed a legal action by a number of these staff to enforce the terms of their contracts.

He said: "The vast majority of staff in AIB have not benefitted from any such payments. Indeed, our members in AIB are now suffering the consequences of the distorted remuneration policies introduced in AIB over the last decade or so – which have given rise to a pay structure which has placed increasing emphasis on performance-related pay compared to basic pay.

"These policies were introduced by the Bank’s senior management - against the wishes of IBOA - on the basis of encouraging staff to meet short-term targets.

“The excessive pursuit of narrowly focused targets by AIB and other institutions in order to maximise share-holder value in the short-term - while inevitably undermining the long-term stability of the bank - lies at the heart of the current financial crisis which has done so much damage to the Irish economy.

"The most pressing issue for our members in AIB is to clarify the future role of AIB Group within a restructured Irish banking system.

"For our part, IBOA is keen, not only to ensure the protection of as many jobs as possible within AIB and the industry generally - but also to encourage a new approach to remuneration throughout the sector - which would eliminate the bonus culture by providing a reasonable level of basic pay for our members," the IBOA leader said.