IBOA throws down gauntlet on price of co-operating with NAMA
Issued : 25 April 2009
Larry Broderick addresses the IBOA Conference
Irish Independent
The Irish Bank Officials' Association (IBOA) secretary general has vowed the union will not co-operate with the setting up of the National Asset Management Agency (NAMA) unless it is brought into talks between the State and the two main banks.
Speaking at the opening of the IBOA's biennial conference yesterday, Larry Broderick said: "There will be no co-operation with the NAMA until the IBOA is at the table with Government and the two main banks."
His comments come against the backdrop of industry fears that as much as half the 4,000 credit management jobs in the sector may be wiped as the agency takes over up to €90bn of risky property loans.
Mr Broderick also took a stance against any nationalisation of Allied Irish Banks or Bank of Ireland. The Government has also said repeatedly that it has no intention to seize the two banks outright, even as it has conceded majority ownership may be on the cards as they require more capital.
Mr Broderick acknowledged there was likely to be consolidation as the sector restructures itself, but said the union "will not accept compulsory redundancies under any circumstances".
Undermine
Motions passed at the conference, titled "Back to the Future -- Restoring Integrity to Financial Institutions" concerned not allowing banks to use the crisis to undermine employment terms and conditions; recognising the role of performance-related pay and targets on the financial crisis; and the need for inclusion of staff representatives on boards.
One speaker slammed the existence of a "golden circle" of top industry figures that "cross-populate" boardrooms across Ireland Inc. He said a "small coterie of well-placed individuals dominate the financial landscape". Finance Minister Brian Lenihan recently signalled that he would do away with cross-directorships.
Sharon McAuley, a union member from AIB, said the "extremely lavish incentives" top-level bankers received had created a problem for all employed in the sector and a public perception "that we're all on the same gravy train".
"We need a comprehensive review of performance-related bonuses," she said, adding that the emphasis needed to move to the "long-term interests of the customer, rather than the short-term needs of the banks".
Stephen Kennedy, of Bank of Ireland, highlighted the "incessant" sales targets imposed on workers in banks in recent years. "At Bank of Ireland we don't do stress. If you have stress, you're not up to the job," he said.
Kate Varley, of AIB, said that the Financial Regulator and its UK peer "have been exposed as highly ineffective" during the crisis as a result of light touch regimes.
Joe Brennan
