NIB turns to head office for cost reduction
DANISH-OWNED National Irish Bank (NIB) will turn its attention to its head office after completing a round of cuts that will see it lay off one-quarter of its workers and shutting its retail operation.
NIB, owned by Danske Bank, said in June it intended to close its 27 branches in the Republic and seek 100 redundancies from its 442-strong workforce.
Yesterday, the bank confirmed it intended to review its head office in the first quarter of next year and inform staff of its findings during the second three months of 2013.
“Danske Bank is fully committed to its Irish operations,” its statement added.
Reports yesterday said that as part of its redundancy programme, exiting staff younger than 50 will receive five weeks’ payment per year worked, including minimum entitlements from the State, subject to maximum payment of 130 weeks’ salary.
They quoted a report by Martin King, the facilitator of talks between staff and the bank, who warned that “there is a risk of compulsory redundancies if sufficient voluntary redundancies are not achieved”.
Larry Broderick, general secretary of the Irish Bank Officials’ Association (IBOA), which represents staff at NIB, said the terms provide for voluntary redundancy and early retirement on conditions its members had endorsed.
“IBOA will now engage further with National Irish Bank on the implementation of its plans to restructure its retail banking operations,” Mr Broderick said.
“We have also begun a broader process of engagement with Danske Bank on its broader strategy to integrate its operations on the island of Ireland – in NIB and Northern Bank – under a single rebranded Danske entity.”
NIB will close its retail branches and focus on online banking backed up by a number of customer service outlets.