Bank of Ireland Group
IBOA seeks summit on jobs crisis in finance sector
Issued : 11 February 2010
IBOA The Finance Union has urged the Tanaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, to hold an emergency summit meeting to address the emerging jobs crisis in the financial services sector.
IBOA General Secretary, Larry Broderick has proposed that the Minister convene a round-table meeting of the major stakeholders in the financial sector - with representatives of management and unions in key domestic and foreign-owned institutions operating in Ireland.
"Simply as a result of non-replacement of staff and the non-renewal of temporary contracts over the last sixteen months, we estimate that at least 4,000 jobs have been lost in financial services in Ireland. Add to that the 1,000 redundancies announced in Ulster Bank last year, the 150 job losses announced in National Irish Bank just before Christmas and the further 750 redundancies sought by Halifax this week, we are looking at around 6,000 job losses. Of course, that's before the restructuring and consolidation of the Irish institutions which is expected to take place over the coming months in tandem with the transfer of toxic assets to NAMA.
"Last year, I warned that up to 10,000 jobs could be at risk in the Irish financial services sector as a result of the current crisis. I have seen no evidence in the meantime to suggest that this estimate is unrealistic.
"Hardly any of those who have lost their jobs were actually responsible for the crisis: the industry leaders who presided over the collapse have largely escaped unscathed - while the few senior executives who have moved on have been generously rewarded for their troubles!
"While the blatant injustice of this situation clearly rankles with staff who have lost their jobs, the pressing concern for those who are currently in employment is to protect their employment into the future.
"In particular our members are concerned that ad-hoc short-term decisions may be taken on the basis of expediency - without regard for the broader context - with the result that long-term damage would be inflicted on the financial services sector.
"We need to be reassured that any further reconfiguration of the financial services sector is properly co-ordinated with broad agreement in advance on the final shape of the industry - rather than arriving at unintended outcomes which not only have negative consequences for the institutions, themselves, but also also for the economy as a whole.
"The national interest demands that the Government should engage on this issue not only to safeguard the economy - but also to minimise the social impact of such a serious haemorrhage of jobs," added Mr. Broderick.
