Finance Minister Michael Noonan said today that he has no role in making decisions about the workforce in AIB.
The State-owned bank is outsourcing IT services with 170 positions being moved to eircom, Integrity and Wipro - but no redundancy package is being offered by AIB.
Minister Michael Noonan says he has no role in such decisions.
"I don’t have anything to do with the workforce in AIB," he said.
"That's a decision for AIB management.
"We have a legal agreement with AIB and we don't interfere with their arrangements or their commercial decisions.
"But my understanding is that they're working out the difficulties they have with the union that represents the workers and that those talks are expected to come to a satisfactory conclusion."
Earlier today, general secretary of the Irish Bank Officials Association (IBOA), Larry Broderick, said that although the news could be worse, the terms and conditions of workers must be maintained.
"The bank today have given a very clear commitment that there'll be no compulsory redundancies," he said.
"The three providers have given a very strong commitment today to meet with us, commencing tomorrow - with a view to transferring staff across and to maintain employment.
"Obviously that's positive - but obviously we're concerned about staff's pay and terms and conditions of employment - they're obviously than these other companies.
"The process now is to engage in negotiation with a view to reach an agreement - but it could be a lot worse, so we're positively endorsing the announcement."
Jobs Minister Richard Bruton said that he hopes workers will find work elsewhere.
"Well we know that the domestic banking system is continuing to go through a difficult adjustment - that is part of the transformation that has to be done," he said.
"But what's really encouraging is that on the wider front on financial services - like in Guidewire - we have strong growth of employment opportunities.
"So hopefully in the AIB case, may of those employees can be accommodated - and that discussion I understand is starting."