AIB staff to seek pay rise of about 3%

Staff at AIB are seeking a pay increase of about 3 per cent. It is understood the finance union IBOA is looking for a deal that will give AIB staff parity with a recent pay deal at Bank of Ireland. That involved average pay rises of 3 per cent.

The IBOA is also believed to be looking for movement from the bank on pay scales and increments. These have been largely frozen for six years.

This issue is purely based around pay; there is no pension issue involved.

It is expected that talks will be held at the Labour Relations Commission (LRC) in coming weeks. It is understood the Government did not want a deal agreed by the bank and its unions in advance of the recent negotiations on pay restoration in the public service.

Mediator

The IBOA said yesterday that following deadlock in direct talks with senior management the issues at the heart of the protracted negotiations on pay and remuneration in AIB Group had been referred to an independent mediator,

Kevin Foley

of the LRC.

IBOA general secretary Larry Broderick said: "From our perspective we believe it is time for an increase in remuneration after a pay freeze lasting over six years – especially since this has been a period of major restructuring within AIB involving a substantial reorganisation of the business and significant job losses.

"We also believe it is time in order to ensure that AIB continues to attract and retain able staff in future. All of AIB's competitors in retail banking in Ireland have recently improved staff salaries.

“In some cases these competitors have engaged in a major overhaul of grades and pay structures as part of this exercise in order to ensure that these keep pace with the significant developments that have occurred in terms of new work roles in response to changes in branch banking, the roll-out of electronic banking services and the new regulatory environment.”

In November Bank of Ireland staff voted for a new pay and career structure negotiated between the IBOA and the bank. That involved a total pay rise of 3.75 per cent as well as a lump sum payment equivalent to 5 per cent of annual salary.