BoI criticised over 3.5 per cent pay increase for staff

Bank of Ireland's decision to award a 3.5 per cent pay increase to its employees has been widely condemned.

The Green Party described the decision as both unnecessary and provocative.

According to reports, 6,000 Bank of Ireland branch workers are to receive the pay rise which was agreed under the new national pay deal last year.

Last week, the ESB confirmed that it had also decided to award a pay increase to its employees.

Earlier today, the Taoiseach Brian Cowen defended the bank's decision to award the pay rise. Speaking on RTÉ radio this morning Mr Cowen noted that other organisations had also agreed to award pay increases to staff under the national agreement.

Fine Gael today criticised Bank of Ireland's decision and called on the Government to force the banks to implement a pay freeze for employees and to ban all bonuses for executives as a condition of the recapitalisation plan.

"The decision of Bank of Ireland and the ESB to increase pay by 3.5 per cent is an affront to hundred of thousands of public and private employees who are taking a pay cut in 2009. It is also an insult to taxpayers who will have to stump up for the recapitalisation of the banks," said Leo Varadkar, the party's Enterprise, Trade & Employment spokesman.

"Today, the Taoiseach tried to wash his hands of these pay increases by claiming that it was a result of an agreement between the unions and employers. This is not true. These pay increases are a result of the National Wage Agreement made by the Government, employers and unions. Fine Gael called for the deal to be suspended last November. Now that it has been called off for the public sector it should be called off for everyone."

The Green Party also criticised Bank of Ireland's decision and said the upcoming bill on bank recapitalisation needs to contain measures that will allow such decisions to be reviewed.

"Financial enterprises that are in receipt of State support either through the Bank Guarantee Scheme or the forthcoming Recapitalisation Scheme should be involved in the same degree of wage restraint that is found in the public sector," said, s the party's finance spokesman Dan Boyle.

Actions like this create public anger and make it even more difficult for public acceptance for difficult decisions that are being made and have yet to be implemented," he added.