IBOA to challenge Ulster Bank's business plan
The Irish Bank Officials Association is calling on Ulster Bank to reconsider its restructuring plan.
The institution announced yesterday it is cutting 950 positions from its operations North and South of the border.
The IBOA, who held talks with management today, is urging Ulster Bank to adopt a new approach to reduce the number of job losses.
General Secretary Larry Broderick said the union does not accept the proposed plan is in the long-term interests of Ulster 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."
Mr Broderick said that the bank had committed to full negotiations with the union and to provide detailed information on all aspects of the bank’s planned restructure.
He said: "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 and that a major change in the operating culture be introduced. The parties have agreed to resume engagement on the proposed restructuring next week."
In the meantime IBOA will seek a meeting with the Government to discuss "the developing crisis in Irish banking".
