BOI staff demand share of outsource deal

Bank of Ireland IT staff are threatening to strike unless they receive a share of the savings being wrought by the deal to outsource the bank’s IT functions.

Due diligence is being done on a deal to outsource the IT division to Hewlett Packard with all employees transferring to the computer giant.

Larry Broderick, general secretary of the Irish Bank Officials Association said yesterday staff affected by the deal wanted a percentage of the savings achieved by Bank of Ireland.

“Staff are very concerned about their jobs and their future. They want an ongoing share, not a once-off payment.”

The union has asked Bank of Ireland how much cost savings will be achieved through the process which Hewlett Packard said is worth €556 million for each year of the seven-year deal.

A figure of €20 million has been suggested although the bank has not confirmed this number.

“Is this about saving seven times €20 million?” asked Mr Broderick.

“The figures do not add up and we have asked Bank of Ireland to clarify. If there are significant savings being made, staff should receive some extra remuneration.”

Mr Broderick said staff had been offered a guarantee of job security for two years while the HP contract was for seven.

A Bank of Ireland spokeswoman declined yesterday to say how much the cost savings amounted to.

“The terms and conditions of staff will be protected going forward,” she said.

The spokeswoman also pointed out the IBOA only represented a third of the 350 staff affected by the deal.

The IBOA has served notice of industrial action and following a meeting with the bank, a timetable for negotiations has been agreed. It has also set up a meeting with HP.

Mr Broderick said the big fear was that staff would transfer to HP and then conditions would change.

Over 150 delegates attended the IBOA biennial conference in Galway yesterday where the association called for worker-directors to be appointed to the boards of the main banks.