IBOA urges Bank to revisit job cuts plan
Issued on January 28, 2012 at 10:31 PM
IBOA The Finance Union has called on Ulster Bank's senior management to revisit its plan for the restructure of the institution. The Union has urged management to adopt a new approach in order to preserve the maximum number of jobs in the Bank.
Following the meeting today between Ulster Bank's senior management team, led by Chief Executive, Jim Brown, and IBOA's Ulster Bank Executive Committee - led by General Secretary, Larry Broderick - the Union leader said that while IBOA acknowledged that the Bank continued to face major difficulties arising from the impaired loans authorised by senior management during the property boom, the Union could not accept that the solution proposed by management was in the long-term interests of the Bank or its customers and staff.
"We outlined the profound sense of shock, anger and distress which the Bank's proposals had caused to staff - as well as the anxiety among customers who had contacted the Union in the wake of the Bank's announcement," said Mr. Broderick.
"It has become an unfortunate fact of life within the financial services sector in recent years that the key contribution of experienced staff is too easily undervalued in the rush to cut costs - with the result that the traditional culture of prudence and integrity has also been undermined. This lack of understanding was a critical factor in creating the crisis in Irish banking - and unfortunately, it seems, it remains the option of first resort - rather than last resort - for many in senior management."
"The Bank has committed to full negotiations with the Union and to provide detailed information on all aspects of the Bank's planned restructure. Given the far-reaching implications of the Bank's proposals, IBOA has decided to engage a firm of independent consultants to challenge the Bank's business plan.
"We also demanded that any redundancies that may be deemed necessary at the end of this process should be implemented on a voluntary basis in line with the severance terms previously agreed in 2009. The Bank's initial response today that it will seek to avoid compulsory redundancies does not provide our members with the necessary assurance.
"The Union has also demanded that the terms and conditions of employment for the staff who remain in the Bank should be fully protected - with appropriate arrangements made to ensure fairness and transparency for any transfers or relocations that may be necessary as part of the restructure," said Mr. Broderick. "The parties have agreed to resume engagement on the Bank's proposals next week.
"In the meantime IBOA will seek a meeting with the Irish Government to discuss the developing crisis in Irish banking in light of the Ulster Bank announcement and with further significant job losses pending in AIB, IBRC and Bank of Ireland," he added.
For more information on the progress of the talks, click here.
