Bank of Ireland staff in line for 2.95% pay increase

More than 90 per cent of Bank of Ireland's 10,400-strong workforce are set to benefit from an average 2.95 per cent pay increase that has been agreed with the lender's main trade union in discussions chaired by independent facilitator Martin King.

Members of the Financial Services Union (FSU) will ballot on the proposals between February 19th and March 4th, the union said in a communication sent out to Bank of Ireland staff on Monday afternoon.

“We cannot understate how challenging pay negotiations have been this year,” said Maeve Brehony, senior industrial relations officers with the FSU, in the notification.

The negotiations took place in the context of declining earnings across the banking sector as it deals with low interest rates and slower-than-expected loan book growth.

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Negotiation

“On the basis that the recommendation is the best that could be achieved through negotiation your FSU sector committee has endorsed this recommendation for acceptance by you our members,” Ms Brehony said.

The proposed pay increase is slightly below the 3.1 per cent raise agreed last year.

The pay rise relates to employees in the lower three ranks of its seven-level grading system and will be dependent on performance review ratings, a spokesman for the bank said, adding that the new arrangements would be backdated to January 1st if accepted by staff.

“In respect of bands four to six, also represented by FSU, Bank of Ireland have maintained their stance that collective bargaining for pay does not apply for these bands [grades] and has not done for over three decades,” Ms Brehony said.

“FSU again called upon Bank of Ireland to recognise the valuable input and performance of our members in these bands and sought that this be reflected in pay terms.”

The bank’s spokesman said that the group has set aside a separate 1.6 per cent increase in its budget for employees between bands four and six “to be applied on an individual basis”.