BoI workers accept cost-cutting recommendations
Workers at Bank of Ireland have accepted recommendations from the Labour Relations Commission concerning the bank's cost-cutting plan.
The bank wants to shed 2,100 jobs as part of the plan and LRC chairman Kieran Mulvey was asked to make recommendations on how to achieve the target.
His main recommendation was that all lay-offs be secured through voluntary redundancy.
Bank of Ireland accepted the proposals in June and the Irish Bank Officials Association said today that its members had also voted in favour.
Bank of Ireland has said it welcomes the acceptance by staff of cost-cutting recommendations today.
The bank will now begin to implement its change programme that is targeting an annual reduction in costs of €120m in the next four years.
Bank of Ireland boss Brian Goggin said: “I am very pleased that a positive outcome has been achieved following intensive discussions with staff representatives over a number of months.
"We are determined to embrace change from our position of strength and we can now begin to implement a programme of change that will transform our business."
The bank will continue to engage with union representatives throughout the implementation of the strategic transformation process, he added.
Of the €210m in planned cost cuts, €30m are planned for 2005/2006, €75m in 2006/2007 and €105m in 2007/2008.
