The threat of strike action by 4,000 Irish Bank Officials' Association members at AIB has lifted following their acceptance of a new pay deal. This allows for increases of 2-11 per cent on top of the terms of the Programme for Prosperity and Fairness. All employees are guaranteed an increase of at least £1,000 (#12,700).

Welcoming the outcome of the IBOA ballot, the union's assistant general secretary, Mr Larry Broderick, said significant issues remained to be addressed, particularly for senior officials, such as bonuses and managers' concerns. AIB's 1,500 members in Northern Ireland have already accepted a deal worth about 3.4 per cent. This reflects lower inflation, which is running at less than half the rate in the Republic.