AIB restructuring talks break down at LRC
Issued : 22 July 2011
The Director of Conciliation at the Labour Relations Commission, Mr. Kevin Foley, has confirmed to AIB management and IBOA The Finance Union that it will not be possible to achieve agreement through conciliation on the restructuring of AIB Group. The Commission had heard submissions from the two sides earlier this week.
"IBOA is disappointed though not surprised that the LRC is unable to see any scope for conciliation at this time," said IBOA General Secretary Larry Broderick "since the Bank's approach at conciliation has failed to take on board the recommendations from the two independent mediators, Mr. Mark Connaughton, SC, and Mr. Liam Deane, even though management has claimed to have accepted them."
"IBOA has sought a reasonable undertaking from the Bank that the shedding of 2000 jobs - as announced by AIB's Executive Chairman earlier this year - would be implemented on a voluntary basis in line with what has taken place elsewhere in the financial services sector," said Mr. Broderick. "It is unacceptable that AIB staff should suffer disproportionately compared to the vast majority of other staff in the industry where redundancies have taken place in the last few years.
"Separately the IBOA has argued that the severance terms to be offered in AIB should also conform to established sectoral norms especially since many senior executives leaving the Bank have received extremely lucrative golden handshakes. Our members are also aware that substantial sums have been paid to consultants for the provision of advice on the restructuring of the Bank.
"So even though many of those who were responsible for the reckless lending at the root of the current crisis have been well rewarded; and even though those hired to rectify the matter are also being well rewarded, the ordinary staff in AIB who are being lined up to sacrifice their livelihoods, have so far not been offered the courtesy of a modest level of compensation despite being in no way responsible for the Bank's collapse.
"IBOA has confirmed to the Bank today that IBOA members will not co-operate with any restructuring proposals until we have reached a satisfactory resolution on a number of key issues which are now likely to be referred to an independent tribunal for consideration."
"The Bank's lack of consideration for its staff in its handling of the restructuring issue is also likely to surface at next week's Annual General Meeting/Special General Meeting in Dublin," added Mr. Broderick.
