Accenture

IBOA The Finance Union gives qualified support to NAMA

Issued : 9 September 2009


IBOA The Finance Union - which represents over 23,000 frontline and support staff in the financial services sector - has given qualified support to the Irish Government's NAMA proposal as offering the best prospects in the current circumstances for not only protecting jobs in financial services but also for stimulating economic activity to protect employment in the wider economy.

IBOA General Secretary, Larry Broderick, said that "while IBOA recognises that there are no easy answers to the unprecedented crisis in the banking industry, the Union considers that providing a number of complementary measures are taken to reform the culture, governance and regulation of the financial services sector, the NAMA approach has the best chance of any of the solutions proposed so far of repairing the banking system and restoring both domestic and international confidence in the economy.

"Following a wide-ranging consultation with our members, the Union's Executive Committee which met today also recognised that the NAMA approach also offered the best prospect for protecting the jobs, pay and conditions of our members in what will undoubtedly be a very difficult period for the industry," he added.

In order to ensure that the financial services sector is not only repaired but also reformed, IBOA considers that the NAMA initiative must be accompanied by a range of complementary measures, including:

  • the introduction of a suitable mechanism to monitor the provision of credit by the participating institutions - either as part of NAMA's remit or of another agency such as the regulator;
  • the introduction of an expanded and more effective regulatory regime - which would include a greater emphasis on prudential issues and would also provide for representation for the regulatory authority on the boards of financial institutions;
  • the introduction of a Whistle-blowers' Charter for staff working in the financial services sector underpinned by legislation;
  • a major change in the culture of banking which would be reflected in the governance structures, a new approach to remuneration and new human resources policies and practice;
  • appropriate protection for homeowners in default;
  • a public inquiry into the banking crisis in order to learn the lessons to avoid a recurrence of the same mistakes;
  • the development of a comprehensive strategy for the future direction of the financial services sector - which would take account of the role of Irish-owned banks; foreign-owned banks; and any State-owned institutions; and
  • the implementation of an agreed framework for the management of change in the participating institutions after the transfer of assets to NAMA - which would provide for negotiated settlements on the basis of no compulsory redundancies; the maintenance of established pay rates and terms and conditions of employment; with full trade union representation for all workers in the financial services sector.

To view the full text of the Union's commentary on the NAMA debate click here.